Nearly half of Affluent households indicate they typically do not buy a new gadget until they need it,
When a new gadget is introduced, like the Apple Watch, are you one of those who camp out in line to be among the first to own it? Do you wait a few months to perhaps ensure all the bugs are tinkered out? Or, like Phil Dunphy in one episode of “Modern Family,” do you hope someone gives it to you for your birthday?
Affluent households are significantly more likely to hold out on buying a new gadget until they need than they are as soon as it is available, according to a new Spectrem Group Investor Pulse survey conducted for Millionaire Corner. In short, they are less likely to go gaga for gadgets. Part of this may be work ethic and a frugal mindset. Spectrem Group wealth level studies of Millionaire households find that nearly all (96 percent) attribute their financial success to hard work, while 78 percent cite frugality as the primary factor in their wealth creation.
So just as the Affluent are less likely, say, to be out carousing on New Year’s Eve, so are they less inclined to get caught up in techno-hoopla. Nearly half (48 percent) indicated they typically do not buy a new gadget until they need it, while one-third wait for the price to come down. Fourteen percent said they wait a few months after a gadget is introduced.
A scant 2 percent said they acquire the latest gadgets as soon as they are available, and even fewer wait until someone buys it for them.
Age is a factor in gadget-gotcha. Not surprisingly, the youngest and presumably more tech-savvy Affluent households are more likely than their older counterparts to adopt the latest technology. For example, six percent of respondents under 40 said they “definitely” plan to purchase a wearable smartwatch compared with just 2 percent of Affluent respondents overall, while 18 percent said they “probably” would (compared with 10 percent of respondents overall).
Similarly, Affluent investors under 40 are less likely than previous generations to hold off on buying a new gadget until they need it (27 percent vs 48 percent of respondents overall). Cost-conscious and always on the lookout for the best deal, they are also more likely to wait to purchase a gadget until the price comes down (40 percent vs. 33 percent overall).
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.