Floridians love their cell phones, but with so much money spent on constant upgrades and the latest products released each year, some financial experts wonder if consumers need a “tech spending diet.”
A new analysis by Investors Observer looked at how much people were spending on consumer durables like cars, furniture, appliances, electronics and equipment going back to 1997, and adjusted everything for inflation to make sure everything was even out.
They found that the biggest increase in credit card spending was on phones and communications equipment, which increased by more than 600% in several U.S. states between 1997 and 2024.
“Many people treat cell phone upgrades like air,” said Sam Bourge, senior analyst at Investors Observer. “The spike in spending since 1997 shows they’re stuck in a cycle of technology upgrades that’s harder to break than most resolutions.”
Florida ranked 8th among the 10 states with the highest phone spending.
Mr Burgi said upgrading mobile phones has become a national habit and the upward spending trend reflects a 2.4% year-on-year increase in global smartphone shipments in 2024.
“People in these states buy newer models every two to three years, and these devices lose half their value the moment they leave the store. Couple this with the fact that credit card balances have increased significantly since 2018 and are primarily being used to fund purchases of the same technology products, and you end up with families and individuals paying interest on depreciating assets,” said Sam Bourge of Investors Observer.
