Nearly One in Three Australians Change Phones Frequently, Despite Living Cost Crisis: Research

Customers look at iPhone models at the Apple Store in Sydney, Australia, on Sept. 20, 2019. (Jason McCawley/Getty Images)

The current living cost crisis has not deterred a significant number of Australians from changing mobile phones regularly, a study has found.

According to a survey of 987 Australians by the financial comparison website Finder, nearly one in three (29 percent) respondents said they purchased a new mobile phone every two years or less.

If applied to the broader Australian population, an equivalent of five million people change their phones frequently.

Among those people, 20 percent switched to a new phone every two years, seven percent did so annually, and the remaining two percent purchased a phone every six months.

This comes as the cost of living crunch is significantly affecting working Australians.

According to the Australian Bureau of Statistics (ABS), all five living cost indexes increased by 0.8-1.5  percent in the June quarter.

And over the 12 months to the quarter, all indexes jumped between 6.3 percent and 9.6 percent.

Among the population, employee households experienced the largest annual rise in living costs at 9.6 percent, the most significant increase recorded for this group since 1996.

Overall food prices rose by seven to eight percent in the past year and were driven by the price increases in meals out and takeaway foods, and fruit and vegetables.

Meanwhile, utility prices soared by 12-14 percent due to higher wholesale prices for gas and electricity.

“All household types saw rises in living costs equal to or higher than the consumer price index. The impact of price changes on household budgets varies between household types with their different spending patterns,” ABS head of prices statistics Michelle Marquardt said.

“Higher prices for insurance, food and housing contributed to increased living costs for all household types.”

Why People Changed Their Phones

The survey found that over two in three Australians (69 percent) replaced their phones due to performance issues.

Specifically, 30 percent said their phones were broken or damaged, while 15 percent cited slow speed as the main reason for changing phones.

The Galaxy Fold 5G is displayed during CES 2020 at the Las Vegas Convention Center in Las Vegas, Nevada, on Jan. 8, 2020. (David Becker/Getty Images)

Around 12 percent experienced battery issues and a similar percentage of respondents said their phone battery was totally dead.

Regarding types of phones, 69 percent of Apple users reported holding to their phones for more than two years, which was slightly lower than 72 percent of Samsung users.

In addition, 21 percent of Samsung users said they would get a new phone after six years or more, compared to only 14 percent of Apple users.

This suggested that Samsung users stick longer to their phones.

Think Carefully Before Getting a New Phone

As inflation and living costs continue to remain high, telco experts advised consumers to think carefully before getting a new phone.

“A new phone launch can be tempting but think about what features you’re actually getting with your upgrade,” said Mariam Gabaji, a telco expert at Finder.

“For the average mobile user, the difference between the two most recent models is often minimal.

“Your best bet is to wait a few models between upgrades–you’ll typically notice a big difference between your new and old phone and save yourself thousands of dollars in the process.”

For those insisting on possessing the latest technology, Ms. Gabaji said they could consider a mobile phone plan.

“Buying outright will be cheaper in the long run, but if forking out more than $1,000 (US$657) in one go is too much, compare your options for buying on a plan,” she said.

“If you do get a new phone on a plan, make sure you’re happy sticking it out with that provider for anywhere between 12, 24 or 36 months. You can always cancel your plan earlier, but you'll have to pay off the remaining cost of your phone in one go.”

The telco expert also suggested people look for bonus offers, such as double the storage space and free data, when shopping for a suitable mobile phone plan.