IPhone ownership top indicator of wealth in U.S. in 2016
10 July, 2018, 12:30 | Author: Sammy Rose
"Cultural distances in the United States over time", was penned by Marianna Bertrand and Emir Kamenica of the University of Chicago.
As noted by Business Insider, data includes bi-annual questionnaires as well as information like household income from a face-to-face interview. An iPhone? According to a report written by the University of Chicago and the National Bureau of Economic Research, in the USA owning an iPhone is an indicator that you are in a higher tax bracket than others. And through strong branding over the years, it's the iPhone that appears to have remained the top choice for those who can afford it. Economists found that almost seven out of ten times, a person with an iPhone has a higher income than others.
According to the paper, if someone owned an iPhone, there was a 69 percent chance they were "high-income", which was defined as "being in the top quartile of income for households of that type". After all, iPhones were only introduced in 2007. Twelve years earlier, Grey Poupon mustard was the most reliable sign of being rich. 67 percent of high-income people also owned an iPad.
Other findings using the 2016 data show that besides iPhone owners, those with an Apple iPad (66.9%), or an Androidphone (59.5%) are more likely to have a "high-income".
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The iPhone is a luxury product that is usually priced higher than competing smartphones. This paper incorporates data from Mediamark Research Intelligence, which had a sample size of 6,394. The most recent data was taken in 2016.
The paper is a look at how different groups - such as rich and poor, black and white, men and women - have had their preferences diverge over time.
The study (which you can read here) by the research group the National Bureau Of Economic Research found that 69.1 per cent of iPhone users are in the top income bracket in the US. Their conclusion "runs against the popular narrative of the U.S. becoming an increasingly divided society", they said.
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