Some people drive fancy cars. Other people buy fancy houses. But according to economists, the best way to flaunt your wealth in today’s world is to show that you own an iPhone or an iPad. Doesn’t it seem weird that an electronic device demonstrates wealth? I mean, buying a multi-million dollar home, in my opinion, requires a lot more. In that, you need more money – up front. While the iPhone X may cost around $1,000, it’s a one time purchase, and there are often “deals” to be had. There is no deal being handed to me when I fork over money to buy a house. Regardless, these are the new findings as published in a paper by the National Bureau of Economic Research.Prior to this paper being published, Tim Cook indicated that the $1,000 iPhone was actually a “value price”. Now I did scoff at that because $1,000 is a lot of money. I guess I struggle to see how that directly correlates to wealth. Well, it doesn’t. Purchasing an iPhone doesn’t mean that you will immediately be classified as a rich person. But the paper does indicate that the product and the brand indicate that you belong to a higher income class. This paper also concludes that those who own an Apple iPad, or even an Android phone are also more likely to belong to a higher income class.Let’s talk about that for a minute, shall we? How is this paper even getting airtime? If you don’t have an iPhone, what other kind of phone could you possibly have? That’s right, an Android phone. So what this paper is really saying is that if you have a mobile device, in 2018, you are more likely to belong to a higher income class? I’d would like to respectfully disagree with these findings. Regardless of what kind of phone you have, it’s 2018, so its almost impossible to not have a cell phone of some kind. While most Android devices do cost less, it’s a bit of a leap to make that correlation. I think the whole idea that you’re in a higher income bracket if you have an iPhone OR an Android is ridiculous and this study should be conducted again.Technology is only one element in this study. In fact, they are also suggesting that you’re in a higher income class if you could buy certain foods. Which includes Land O’Lakes butter, and Kikkoman soy sauce. While these products may be more expensive than others, I guess I don’t necessarily think that the two can be equated. Regardless of how much money I make, or have, I tend to try to find deals. So if there is a cheaper version that’s of equal quality to Land O’Lakes, I am going to buy it. I am not going to throw money away just so I can look more affluent.The same goes for the iPhone. I am not going to lie, I love my iPhone. But I wouldn’t necessarily say that it puts me in a higher income class. In fact, I’ve been buying Apple products since I was a student and I had no money. I guess I would like to see more details on how the paper is making these correlations. I can certainly see that people who are in a higher income class would buy an iPhone over another product, but I don’t know that you can make the reverse leap.
A new study indicates that if you own an iPhone or an iPad, you are in a higher income class. But is this correlation accurate?