Millennials and Cell Phones
A recent study conducted by Coupon Follow took a look at 1,015 people between the ages of 20 and 35 to find out a little more about the group’s purchasing behavior. Because this generation, which we refer to as millennials, makes up so much of our current population it is important for the economy to know what they do and don’t buy.
Those conducting the survey were surprised by what they found. According to the findings, 68 percent of millennials plan to spend $500 or less on their next smartphone. Samsung users said they’d spend even less – 52 percent said that they would spend $300 or less. Additionally, 57 percent of those surveyed said that they’d wait for discounts from their favorite brand before purchasing a phone. Another 21 percent said they planned on waiting for some kind of incentive (freebies, etc.) Only 14 percent of millennial smartphone users said they would spend $700 or more on their next smartphone.
There are a few more interesting finds in the survey as well. Eighty-nine percent of millennials plan to purchase the same brand phone the next time they need one. Brand loyalty is something that seems to be extremely important. However, many of these individuals also said that they aren’t willing to pay a lot for their next device.
With the newest iPhone and Samsung phone being released with a projected sale price of $1K, many shoppers may be forced to choose between the brand they love and their budget.
How Much Should You Spend on a Cell Phone?
There is no doubt that smartphones are expensive pieces of equipment and, for most people, it is something you use every day. The answer to the question “how much should you spend on a cell phone” isn’t a clear black-and-white answer. You have to take a number of things into consideration. What are you using the phone for? What is your budget? Is there a payment plan?
I, for one, would never spend more than $500 on a phone. However, many people will be waiting in line the morning Apple releases its newest phone, whether it is $1,000 or not. In fact, a friend of mine said he already planned on doing so.
One thing is for sure – cell phone companies are definitely going to see how far millennials are willing to bend on their tech budget. Because both major cell phone companies (Apple and Samsung) have named a $1,000 sale price, millennials will have to decide whether they will pay the huge asking price, wait for a discount or simply pass up the newest phone. If the companies don’t find incentives for their younger consumers they may lose a lot of loyal customers.
Check out the full study at CouponFollow.
Would you pay $1K for a smartphone?
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