When the iPhone 13 came out, inflation was above 5%. It was 8.5% last month.
When Apple unveiled the iPhone 13 last September, inflation was hot — but as consumers and investors review the freshly unveiled iPhone 14 lineup, they’ll do so while sweating through even hotter inflation.
Still, questions remain. Despite unchanged prices for the iPhone 14 line, it’s worth asking how many people will have the cash and capacity to spend on Apple’s latest array of smartphones, watches and headphones. When Apple unveiled the iPhone 13 last September, federal government inflation data showed a 5.4% year-over-year increase. As of July, it’s up 8.5% year over year — a cooler-than-expected number, helped by declining gas prices.
That’s people in households with annual income ranges of $48,000 to $89,999 and above $90,000 — presumably prime demographics for the latest Apple gear. They, analysts say, are Apple’s AAPL, +0.93% prime customers for its pricier wares. Cutting back on spending, or buying only the essentials, are the top ways of combatting inflation, Gallup said. One quarter said they are spending less, while second place was a tie between less vacationing and less driving, at 17%.
Still, the news was good for iPhones. The company pulled in $40.67 billion in second-quarter iPhone revenue, beating expectations for $38.59 billion.
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