Researchers claim iPhone and iPad ownership is a wealth indicator
Owning an iPhone or an iPad is a strong indicator that someone has a high income, according to a study from the National Bureau of Economic Research, with both of Apple's mobile devices found to be one of the most common wealth status symbols of all brands and products.
The paper, "Coming Apart? Cultural Distances in the United States over Time" by University of Chicago economists Marianne Bertrand and Emir Kamenica, analyzed trends in differences between groups of people, including income, education, gender, race, and political ideology. Business Insider reports part of the paper covers the usage of brands by people with different levels of wealth in 1992, 2004, and 2016, with iOS devices topping the list for the most recent year examined in the study.
According to the data, if the respondent said they owned an iPhone, this gave the researchers a 69.1 percent chance of determining the person had a "high income" and were in the top quartile for income. An iPad gave similar results with a 66.9 percent chance, while owning an Android smartphone was in fourth place at 59.5 percent.
Seven of the ten spots in the 2016 Brands list are technology related, with using Verizon Wireless in third with 61 percent, owing a HP printer or fax machine at 58.2 percent, using AT&T for cellular at 58.1 percent, and owning a Samsung TV scoring 58 percent.
The results for 2004 highlight how technology-focused 2016's list is, with owning a Toshiba TV in seventh place at 58.3 percent for that year, while using AT&T for long-distance call services was in eighth position with 57.5 percent.
Goth the iPhone and iPad's 2016 percentages are also far higher than the highest indicators in the other two monitored years. The highest indicator for 1992 was the usage of Grey Poupon Dijon mustard at 62.2 percent, while 2004's biggest indicator was using Land O' Lakes Regular butter at 59.2 percent.
"Across all years in our data, no individual brand is as predictive of being high-income as owning an Apple iPhone in 2016," claim the researchers.
As with other survey-based analysis of nations, there are some caveats to the research, and part of this may be from its methodology. In this case, the researchers sourced data from Mediamark Research Intelligence, which used bi-annual questionnaires and interviews, with a sample size of 6,394.
This is not the first time Apple products have been linked to affluence. A 2009 study into computers and electronic device usage in U.S. households noted 36 percent of Apple computer owners reported household incomes greater than $100,000, compared to 21 percent of all consumers. Apple households also owned double the number of consumer electronic devices compared to the average computer-owning household at the time.
The paper, "Coming Apart? Cultural Distances in the United States over Time" by University of Chicago economists Marianne Bertrand and Emir Kamenica, analyzed trends in differences between groups of people, including income, education, gender, race, and political ideology. Business Insider reports part of the paper covers the usage of brands by people with different levels of wealth in 1992, 2004, and 2016, with iOS devices topping the list for the most recent year examined in the study.
According to the data, if the respondent said they owned an iPhone, this gave the researchers a 69.1 percent chance of determining the person had a "high income" and were in the top quartile for income. An iPad gave similar results with a 66.9 percent chance, while owning an Android smartphone was in fourth place at 59.5 percent.
Seven of the ten spots in the 2016 Brands list are technology related, with using Verizon Wireless in third with 61 percent, owing a HP printer or fax machine at 58.2 percent, using AT&T for cellular at 58.1 percent, and owning a Samsung TV scoring 58 percent.
The results for 2004 highlight how technology-focused 2016's list is, with owning a Toshiba TV in seventh place at 58.3 percent for that year, while using AT&T for long-distance call services was in eighth position with 57.5 percent.
Goth the iPhone and iPad's 2016 percentages are also far higher than the highest indicators in the other two monitored years. The highest indicator for 1992 was the usage of Grey Poupon Dijon mustard at 62.2 percent, while 2004's biggest indicator was using Land O' Lakes Regular butter at 59.2 percent.
"Across all years in our data, no individual brand is as predictive of being high-income as owning an Apple iPhone in 2016," claim the researchers.
As with other survey-based analysis of nations, there are some caveats to the research, and part of this may be from its methodology. In this case, the researchers sourced data from Mediamark Research Intelligence, which used bi-annual questionnaires and interviews, with a sample size of 6,394.
This is not the first time Apple products have been linked to affluence. A 2009 study into computers and electronic device usage in U.S. households noted 36 percent of Apple computer owners reported household incomes greater than $100,000, compared to 21 percent of all consumers. Apple households also owned double the number of consumer electronic devices compared to the average computer-owning household at the time.
Comments
Astounding! Who would have that owning a $1,000+ phone was an indicator of high income?
Whoa—here’s a thought. I bet they would find that owning a BMW might have the same correlation.
I live in poverty, but I have an iPad Pro (1st gen 12.9") and two iPhones (an iPhone 4, considered "obsolete" at this point, happily used as an iPod, and an iPhone 6s... probably considered obsolete very soon).
I was poor when I got them. I don't spend money on anything but bills and groceries. Occasionally I get a tax refund and I put it toward an electronic device I need. At no point did I ever even consider buying the ridiculous iPhone X.
No advanced degree either. It's so much more "fun" to be an intellectual when impoverished and unable to formally document any "professional" competency to a would be employer... :-p
IPhone users usually have a higher level of disposable income. However, the flip side of this metric having an iPhone does not mean you have disposable income. Some people have chosen to not spend money on other things so they can have an iPhone. I read that in India Soda other discretionary sales are down because people there are choosing not to buy other items so they can afford their data plans on their smart phones.
That is no true with a BMW, owning a BMW is the gift that keeps giving. When I bought mine i was told to be prepare for the cost to repair, you may be able to afford the car payment, but those unexpected repair bills will kick you in the ass.
So it’s a perception issue and I can attest to the fact that almost everyone in my age group and social circles have iPhones and we’re not rich by most definitions of the term.
This suggests that a strong wealth indicator is "smartphone" in general. I guess there are still a lot of flip phone owners out there, but I don't know any.
iPhone X was paid for in 6 months.
Current iPad mini is now paid for while all my past devices are resold thru Gazelle - get Amazon gift cards.
My Apple Watch 1st gen was mostly paid for with an Apple Store card i got when reselling my 2011 MBP for a SS 2014.
Bet a good portion of Apple buyers are the working bees and their love for Apple Apple.
I personally think that’s really cool.
Poor people should not have any privacy.
Anecdotally I know a developer who bought the most expensive iPhone X at $1,150 who doesn't make a lot of money and know people with more money than they know what to do with that bought the 4.7" iPhone 8 this past year, and others with even more money that are still using iPhones that are much older.
It seems obvious to me that the reason these people are buying an iPhone aren't because it's the most expensive, but because it's the best product available. For many this may be for status symbols reasons, but for most people I know the reason has to do with time v cost. And since Phones tend to last longer and have a much better resale value than some random Android-based device the TCO for an iPhone could easily be lower when again increases the overall value of the device.