ibusinesslines.com
ibusinesslines.com November 16, 2018


IPhone ownership top indicator of wealth in United States in 2016

13 July 2018, 12:00 | Jodi Jackson

Counting

Counting bills

The USA's National Bureau of Economic Research has teamed up with the University of Chicago to reveal how our lifestyle choices shed light on our income.

Researchers Marianne Bertrand and Emir Kamenica looked at study participants' media consumption, consumer behaviour, time use or social attitudes over a number of years, and found 69.1 per cent of people who owned an iPhone in 2016 were "predictive of having a high income".

While the actual report isn't what you would call a page turner, it does say that based on 2016 data, no other brand is as "predictive" of having a high income as the Apple iPhone is.

The research says the iPhone being correlated with high income is just a recent trend. You could tool around town in an expensive auto, wear some fancy duds, live in a giant mansion, or carry an Apple iPhone. After all, iPhones were only introduced in 2007.

For example, in 2004, buying a new vehicle and using Land O'Lakes regular butter implied you were well off, while in 1992 it was owning an automatic dishwasher and buying Grey Poupon Dijon mustard that meant you were among the elite.


"Knowing whether someone owns an iPad in 2016 allows us to guess correctly whether the person is in the top or bottom income quartile 67 percent of the time", they write.

The iPhone tends to be a luxury product for most.

Last year's line-up of Apple handsets started at a hefty £699 ($908), rising to £1,149 ($1,493) for the top version of the swanky iPhone X model.

However, the research also shows that owning a generic Android phone (60 percent) or using Verizon (61 percent), which was the priciest carrier for wireless service in 2016, also were reliable indicators of wealth, too. The data includes bi-annual questions and info on household income based on a face-to-face interview. The economists used a machine learning algorithm to conclude that "cultural differences", or how common brands and experiences are across groups, aren't getting larger over time.

"This take-away runs against the popular narrative of the USA becoming an increasingly divided society", the researchers wrote. By high-income, they meant being in the top quartile of income for households of that type.



Other News

Trending Now

Wimbledon 2018: Indignant Novak Djokovic is joy to watch once more
The 12-time major victor prevailed despite picking up two code violations and accusing umpire Carlos Ramos of "double standards". He then let rip at Ramos for failing to sanction Nishikori for a similar act of frustration in the fourth set.

Meghan, Duchess of Sussex, rocked many looks during Ireland visit
She went on to critique the fit - particularly cutting words, coming from a couture designer - suggesting her dress was too loose. While in Dublin on Wednesday, the couple ran into a woman who suggested to Prince Harry they get started, according to People .

England vs India: MS Dhoni close to breaking another monumental ODI record
All three of them were very different and came at different times. "It was important for me to strike form as early as possible". In the opening ODI, spin can be the key factor as the Trent Bridge ground will be drier than normal.

Did England attempt to score while Croatia celebrated second goal?
Football will not be coming home to England , and there will be no title to match the 1966 triumph at Wembley Stadium. Mandzukic was mobbed by teammates, who jumped on him in the corner and trapped photographers under them in the crush.

Trump blasts 'fake' NYT story on U.S. opposition to breastfeeding measure
NPR could not independently confirm that the US threatened Ecuador or any other country over this resolution. But then the United States stepped in and took the side of infant formula manufacturers.

Trade and tea with queen for Trump in a Britain in 'turmoil'
London Mayor Sadiq Khan has come under fire for his approval of a blimp featuring US President Donald Trump dressed as a baby. I'm certainly going to Turnberry and I'll see him there.

Gareth Southgate gave England staff handwritten notes before World Cup
Despite the potentially imminent tattoo remarkably Powell is still supporting England. It's easily the best goal in England's biggest ever win at a World Cup.