Fewer People Are Buying iPhones: Here's Why

While Apple is slated to launch its newest generation iPhone this year, the number of consumers that will actually purchase the phone may be on the decline. According to a survey by WalletHub, about 28 percent fewer people plan on buying the iPhone this year compared to last year.

One of the reasons for the possible decline in cell phone purchases may be because 144 million Americans will only buy a new phone after their current device breaks, according to the survey.

The cost of the iPhone may also push some consumers away as only four in 10 consumers would pay at least $200 extra to get a new iPhone instead of an Android phone while Millennials will pay on average 41 percent more than Baby Boomer for a new phone.

Even as many as 94 percent of American say that new phones are getting too expensive with 47 percent of people saying the cost of a cell phone is stopping them from buying a new one, the WalletHub survey said.

The survey also indicated that the price of a cell phone also dictates when a consumer will buy a new phone. A total of 38 percent of survey respondents said price matters when deciding to purchase a cell phone while 24 percent said new features matter, 19 percent said operating system matters, and 19 percent said reviews and recommendations matter to them most.

The upfront cost of a new phone stops many consumers from making a purchase as the WalletHub survey said that 48 percent would pay $300 upfront for a new phone while 32 percent would pay $500 upfront, 18 percent would pay $1,000 upfront, and only 2 percent would pay $2,000 or more upfront.

The survey also indicated that one in 10 people think that their new iPhone purchase is worth going into credit card debt for while 30 percent of survey respondents said they will wait until they can get a good deal.