One in five iPhone users "constantly overdrawn"

Apple fans have long been known for their dedication, but new studies may reveal an element of truth to the assumption that most fans are living beyond their means. Of those surveyed, one in five iPhone users said that their main bank account is almost always overdrawn. In comparison, almost half of Android and Blackberry users said they were never overdrawn.

In a report published by The Daily Mail, figures suggest that there is a link between smartphone choice and financial status. Of those surveyed earning over £50,000 per year, 10% were Blackberry owners, 7% were Android owners, while only 5% were iPhone users. At the other end of the spectrum, 27% of Android users earned less than £20,000, while 38% of Blackberry users fell into the lowest earning bracket. On the iOS platform, that figure rose to just under 50%.

RIM has had great success with pushing the Blackberry into professional sectors, with their Blackberry Enterprise Server providing a simple solution to information exchange across several devices. On the other hand, the recent popularity of the Blackberry Messenger has brought the business-minded platform to the younger generation. The surge of interest among the younger audience makes sense, considering the high rate of users within the <£20,000 bracket.

As Apple prepares to release the rumoured iPhone 5, the internet has been left guessing as to what Apple has up their sleeves for their next release. NFC is a highly-rumoured feature, which would allow iPhone users to make payments by touching their phone against an NFC-enabled paypoint. On the other hand, such a feature might not be in their audience's best interests considering the results of this survey.

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I think to a lot of people, the iPhone, and Apple as a brand, represents "the american dream" in digital technology, so to speak.... It's so sleek, so "amazing" that everyone wants one... Especially those who don't have much of anything... If the iPhone is THE status symbol of the 2010s, then those people who are looking to at least PRETEND they're successful, mainstream, cool, whatever, are going to buy one.

The only people I see with iPhones are rich snobs or college kids that have their parents pay for everything. Everyone else else (poor included) uses Android. I didn't even know Blackberry was still around.

Educated Idiot said,
The only people I see with iPhones are rich snobs or college kids that have their parents pay for everything. Everyone else else (poor included) uses Android. I didn't even know Blackberry was still around.

A reply more absurd than the logic used in the article, nice work. The demographic for iPhone uers is pretty wide.

I thought overdrafts were supposed to be a thing of the past with the banking reform law that passed? Just a cash cow for the banks. It would almost be better if banks would just reject electronic transactions or return your check marked "insufficient funds". But I guess then they wouldn't get their $35 each time it happens.

To the article, if you're "constantly overdrawn", you obviously can't afford regular cell phone service and should consider a pre-pay plan. I use NET10 and pay $16/month after taxes for 200 minutes. Of course, I just make phone calls and don't need all the features/gimmicks of a smart phone.

This survey was done in the UK (as evicenced by the fact that they quote money amounts in pounds, not dollars), which has different laws, and a different type of "overdraft" than what we have here in the US.

roadwarrior said,
This article breaks down the numbers of "constantly overdrawn" smartphone users a little better: http://www.broadbandgenie.co.u...-overdrawn-says-yougov-poll

iPhone: 18%
Android: 14%
Blackberry 13%

The difference between those numbers is barely outside the margin of error for a poll of this size.

The way this article is written is ridiculous. Classic case of reporting the results in a way to make a point that can't be drawn from those results. What percent of iPhone users are "never overdrawn" ... how does that compare to the "almost 50%" of Android users who report never being overdrawn? If they're going to compare results at least compare the same ones!

Reading this is almost like reading the Flying Spaghetti Monster beliefs such as Pirates and global warming.

Correlations are not always right..

one in five iPhone users said that their main bank account is almost always overdrawn. In comparison, almost half of Android and Blackberry users said they were never overdrawn

So how many iPhone users are never overdrawn, and how many Android (and how many Blackberry, separately) users are almost always overdrawn? Apples to apples is how statistics should be used... you're using the numbers in conjecture rather than a simple logical path.

Then the rest of the article, particularly the last paragraph on NFC, is unrelated padding. I'm very disappointed in what's going on with this site's quality.

1 in 5 isn't even a statistic interesting enough to be worth comment

People just have it as a social status thing. Probably even more so if they don't have a lot, its a way to trick people into thinking they have money.

I really do not understand how the daily mail came to this conclustion. If what they say is true, i have more than 5 people whom i know who own an iPhone. And i can say with certainity that none of them have their accounts overdrawn.

The Daily Mail hasn't published their source...or am I blind?

As it stands it's reading that 20% of iPhone users surveyed are constantly overdrawn. That means 80% aren't. By the same token the article says 54% Android users and 50% Blackberry users aren't. Doesn't the article actually say iPhone users are more financially sound? Poorer, but less overdrawn?

Wait a minute, from the results of the survey it would seem that a higer percentage of Blackberry and Android users are overdrawn (at least some times) than iPhone users. It would be nice if the Daily Mail had posted the full results of the survey, not merely the ones that supported the point they were trying to make with their article. If 1 in 5 iPhone users (20%) are "constantly overdrawn", then what are the numbers for "sometimes overdrawn" and "never overdrawn"? And if 54% of Android and Blackberry users are "never overdrawn", what are their numbers for "constantly overdrawn" and "sometimes overdrawn"? It could very well be that the numbers are similar across the board for all smartphone users.

Simply put, this is because far too many people are living beyond their means. I walk in to the Apple Store and see people pulling out iDevice after iDevice at the Genius Bar and think to myself, there is no way ALL of these people have that much money! It's taken me about a good few years to get the cash together to pay for my iPhone and my new £900 custom built PC and there is no way I would risk going overdrawn for anything let alone the newest must have gadget. As much as I'd love an iPad 2, not only can I not afford one (well, strictly speaking, if I NEEDED one, I could as I could muster up £400) but, I don't need one and can't justify getting the latest fangled gadget just to web browse or play a game, when I have an iPhone, PC and laptop sat at home!

Well said! Lots of people living well beyond their means, and overdraughts and huge credit card debts seem to be seen as acceptable.

I've been there in the past and thankfully am debt free now - but it has taken me to get to earning a decent wage and having minimal outgoings to get there!

Zoom7000 said,
Simply put, this is because far too many people are living beyond their means. I walk in to the Apple Store and see people pulling out iDevice after iDevice at the Genius Bar and think to myself, there is no way ALL of these people have that much money! It's taken me about a good few years to get the cash together to pay for my iPhone and my new £900 custom built PC and there is no way I would risk going overdrawn for anything let alone the newest must have gadget. As much as I'd love an iPad 2, not only can I not afford one (well, strictly speaking, if I NEEDED one, I could as I could muster up £400) but, I don't need one and can't justify getting the latest fangled gadget just to web browse or play a game, when I have an iPhone, PC and laptop sat at home!

But there may be lots of people at those stores that have saved money for some time. Combined with high product popularity, that WILL indicate a constant stream of people that actually have the money.

What you've seen there indicates nothing special in terms of who may have the money. You have only seen that many people are interested in their phones, nothing more.

Having said that, where I live, I had to go through a credit check from my operator before even being able to sign up for a plan and purchase my phone.

Finally, note that this study concluded that 4 in 5 people, a massive 80% of all iPhone users, are not constantly overdrawn. So by far most people can pay for their iPhones well enough to pay off their bills more or less regularly.

Zoom7000 said,
Simply put, this is because far too many people are living beyond their means. I walk in to the Apple Store and see people pulling out iDevice after iDevice at the Genius Bar and think to myself, there is no way ALL of these people have that much money! It's taken me about a good few years to get the cash together to pay for my iPhone and my new £900 custom built PC and there is no way I would risk going overdrawn for anything let alone the newest must have gadget. As much as I'd love an iPad 2, not only can I not afford one (well, strictly speaking, if I NEEDED one, I could as I could muster up £400) but, I don't need one and can't justify getting the latest fangled gadget just to web browse or play a game, when I have an iPhone, PC and laptop sat at home!

I agree with you on this one. I have seen on YouTube channels they have about 2-3 iPhones. Maybe not all 4 th generation but why do you need more than one? While some people like us are without one thanks to our damn f.... carriers not bringing down the phone to the country. I am sure that from the above said 1 person must have more than one idevice as well.

Plus one thing for this could be that everything needed for apple costs $$$ most of the things aren't included inside the box. At the moment I am planning to buy a MacBook pro but something which drifts me away is that most of the things aren't there. We need to purchase then extra and those are pretty expensive.

Sigh. Perhaps The Daily Mail should provide more relevant comparisons. 20% of iPhone users are overdrawn. 50% of Android/BlackBerry users are NEVER overdrawn. How is anyone supposed to compare those two sets of statistics?

Sure, the article goes on to say that the iPhone user delinquency rate is twice the national average (among all Britons I would assume; smartphone users or otherwise). Perhaps smartphone users in general are twice as likely to overdraw their bank accounts! Isn't that an equally rational conclusion?

Statistics can be twisted to support a given viewpoint. Take them with a grain of salt.

Siddharth Prabhu said,
Sigh. Perhaps The Daily Mail should provide more relevant comparisons. 20% of iPhone users are overdrawn. 50% of Android/BlackBerry users are NEVER overdrawn. How is anyone supposed to compare those two sets of statistics?

Sure, the article goes on to say that the iPhone user delinquency rate is twice the national average (among all Britons I would assume; smartphone users or otherwise). Perhaps smartphone users in general are twice as likely to overdraw their bank accounts! Isn't that an equally rational conclusion?

Statistics can be twisted to support a given viewpoint. Take them with a grain of salt.

Sorry, Siddharth - I think we were typing at the same time! You expressed it very well; I agree with you.

Siddharth Prabhu said,
Sigh. Perhaps The Daily Mail should provide more relevant comparisons. 20% of iPhone users are overdrawn. 50% of Android/BlackBerry users are NEVER overdrawn. How is anyone supposed to compare those two sets of statistics?

Sure, the article goes on to say that the iPhone user delinquency rate is twice the national average (among all Britons I would assume; smartphone users or otherwise). Perhaps smartphone users in general are twice as likely to overdraw their bank accounts! Isn't that an equally rational conclusion?

Statistics can be twisted to support a given viewpoint. Take them with a grain of salt.


Sounds like the article is skewed to make it sound like Apple users pay for more than they can, when the statistics don't indicate that.

Siddharth Prabhu said,
Sigh. Perhaps The Daily Mail should provide more relevant comparisons. 20% of iPhone users are overdrawn. 50% of Android/BlackBerry users are NEVER overdrawn. How is anyone supposed to compare those two sets of statistics?
snip....

Agree. The math doesn't quite add up correctly with this article. 20% compared to 50%.

Siddharth Prabhu said,
Sigh. Perhaps The Daily Mail should provide more relevant comparisons. 20% of iPhone users are overdrawn. 50% of Android/BlackBerry users are NEVER overdrawn. How is anyone supposed to compare those two sets of statistics?
I was thinking the same thing. Has Neowin started using Amazon's Mechanical Turk to write articles lately? The way things have been going recently, one has to wonder.

TruckWEB said,
People want the BlingBling of Apple, but they can't cope with what it cost.... To own and operate.

^ This. Apple is a status symbol. I avoid it at all costs. It screams "I have money to pay to look cool"

blahism said,
^ This. Apple is a status symbol. I avoid it at all costs. It screams "I have money to pay to look cool"
Yes, that is the only reason anyone buys an Apple product.

I do not understand people who live beyond their means, I do not understand people who don't have the money and yet still buy these things. Honestly, if you're hard-up, surely there are more important things to be spending money on than a gadget you'll want to replace in a few years?
A lot of this is to do with how you think you are perceived by others, and for some reason with products like the iphone it's even worse.
Ughh grumble grumble.

Could be that they give their credit card details once - and they are charged every time they buy something on App Store - and much to their ignorance?!

Somehow I strongly believe that!

Mohitster said,
Could be that they give their credit card details once - and they are charged every time they buy something on App Store - and much to their ignorance?!

Somehow I strongly believe that!


You have to be pretty damn ignorant for that to happen since you're reminded that the card is charged for each and every purchase you make, as well as with how much it's charged with.

But sure, if you're as ignorant as not thinking of what that restaurant meal actually costed you, or what that drink at the bar did cost you - I guess that can happen too...

Mohitster said,
Could be that they give their credit card details once - and they are charged every time they buy something on App Store - and much to their ignorance?!

Somehow I strongly believe that!


That means they are irresponsible idiots.

ahhell said,

That means they are irresponsible idiots.

Yes they indeed are - I am just implying that people who are not that tech savvy - and are used to clicking "Yes' out of the two options of "Yes" and "No" may not even think twice before clicking ......hehe just an hypothesis buddy

this study forgets one thing.

there are a lot of students in the lower earnings brackets, who are reguarly in overdrafts anyway

-Dave- said,
this study forgets one thing.

there are a lot of students in the lower earnings brackets, who are reguarly in overdrafts anyway

No it doesn't . Do you think only young people have an iPhone? I know a lot of young people who have Android phones.

-Dave- said,
there are a lot of students in the lower earnings brackets, who are reguarly in overdrafts anyway

It hurts looking at my account sometimes ;_; But since getting a job it's alright!

RangerLG said,

And Edge speed if using data.

Bingo. However, if mjedi7 is always by a WiFi connection at work/school/home (the times when you really need the 3G Speed) then more power to him. He has a decent phone, great price and WiFi speed for data. Otherwise he's just an idiot who want's to look cool with an iPhone.

My debt is cause by me over using my visa, not by my choice in smartphone. Smartphone choice and financial status has nothing to do with each other....

DJ Dark said,
My debt is cause by me over using my visa, not by my choice in smartphone. Smartphone choice and financial status has nothing to do with each other....

Agreed, what a massive waste of time this study was. Everyone in my circle of friends has an iphone and our bank balances vary quite a lot, the lowest being constantly over drawn and in debt, to having a steady bank account, to healthy, the highest being loaded... we all have iPhones.

Uplift said,

Agreed, what a massive waste of time this study was. Everyone in my circle of friends has an iphone and our bank balances vary quite a lot, the lowest being constantly over drawn and in debt, to having a steady bank account, to healthy, the highest being loaded... we all have iPhones.


The study isn't saying the choice causes their balance to below, just that overall there is a correlation.

DJ Dark said,
My debt is cause by me over using my visa, not by my choice in smartphone. Smartphone choice and financial status has nothing to do with each other....

That statement is so dumb. It's not that if you have an iPhone it will change your financial situation but the type of person that is drawn to an iPhone usually (1 in 5 chance) make bad financial decisions.

UndergroundWire said,

That statement is so dumb. It's not that if you have an iPhone it will change your financial situation but the type of person that is drawn to an iPhone usually (1 in 5 chance) make bad financial decisions.

I don't think it means they make bad financial decisions. It's just the people are earning less so need to borrow to buy certain things like cars etc -they're probably young as well. I have an overdraft left over from my student days that is interest free, it doesn't mean I have made "bad financial decisions" it's just I it's still early days in my employment history and I'm not earning much yet..

DJ Dark said,
My debt is cause by me over using my visa, not by my choice in smartphone. Smartphone choice and financial status has nothing to do with each other....

If you're in the US, you couldn't be more wrong. Most smart phones in the US are sold on contract which means you're agreeing to more debt. An iPhone in the US will run you about 2200 bucks after 2 year term if you don't buy ANY apps for it. That isn't exactly a positive cash flow and if you have debt, that ~100/month you pay for a "Smart" phone could easily pay down your debts.

omnicoder said,

The study isn't saying the choice causes their balance to below, just that overall there is a correlation.

Correlation does not imply causation. What a waste of a study....

d4v1d05 said,
Correlation does not imply causation. What a waste of a study....

The study does not imply causality... the link is the correlation. Buying an iPhone does not make you overdrawn, but you can discuss whether or not people with limited means still bought one because of the status conferred by the iPhone at the time, despite their financial status.

d4v1d05 said,

Correlation does not imply causation. What a waste of a study....

Yeah but when the release a study that more women are attracted to men with an iPhone no Apple Fanboy will ever say that. It's funny when you see a negative study is reflected on a product how quickly people will say it's stupid.

Hint: They're all stupid. Why bother making a study on looks and financial status?

blahism said,

If you're in the US, you couldn't be more wrong. Most smart phones in the US are sold on contract which means you're agreeing to more debt. An iPhone in the US will run you about 2200 bucks after 2 year term if you don't buy ANY apps for it. That isn't exactly a positive cash flow and if you have debt, that ~100/month you pay for a "Smart" phone could easily pay down your debts.


I'm in Canada, my monthly payment to my carrier is $90/month. I however make $1020/bi-weekly so your point about positive and negative cash flow is moot. That debt is paid off monthly so it really isn't a debt to begin with...

This young person is not a fan of iOS.

Galaxy S ftw!!! (not that I have one that blardy works properly on 850MHz yes!! )

Auzeras said,
This young person is not a fan of iOS.

Galaxy S ftw!!! (not that I have one that blardy works properly on 850MHz yes!! )

Why is it underclocked?

could it be that just younger people use the iphone, and well young people generally make less or are in school and working only part time? ... nah... just apple fanboys are just poor

Hupp said,
could it be that just younger people use the iphone, and well young people generally make less or are in school and working only part time? ... nah... just apple fanboys are just poor

I know more people above 30 who have iPhone than people under 30 who have it...

Hupp said,
could it be that just younger people use the iphone, and well young people generally make less or are in school and working only part time? ... nah... just apple fanboys are just poor
I thought that you cant really be 'poor' and afford this phone. Especially with the crap data plans that are currently available...

Hupp said,
could it be that just younger people use the iphone, and well young people generally make less or are in school and working only part time? ... nah... just apple fanboys are just poor

Yeh they said themselves that people earning the lower brackets are more likely to have an iPhone, but that very nature these are the people who are going to be more likely in debt (regardless of having an iPhone or not) because they would have to lend money to get cars, houses, etc

este said,
I thought that you cant really be 'poor' and afford this phone. Especially with the crap data plans that are currently available...

Sure you can bee poor and get the phone...just means you are living beyond your means, or have your priorities messed up

DomZ said,

Yeh they said themselves that people earning the lower brackets are more likely to have an iPhone, but that very nature these are the people who are going to be more likely in debt (regardless of having an iPhone or not) because they would have to lend money to get cars, houses, etc

Yeah, because most people pay for their car and home with cash. Only poor people need car loans and mortgages, right!

Hupp said,
could it be that just younger people use the iphone, and well young people generally make less or are in school and working only part time? ... nah... just apple fanboys are just poor

I dunno, I know more adults that are in massive debt than younguns.

este said,
I thought that you cant really be 'poor' and afford this phone. Especially with the crap data plans that are currently available...

Thats why they are poor.

LukeEmery said,

Thats why they are poor.


wow, Apple users can't control their feelings and now they also can't control their bank accounts. They sound like losers to me. haha

Gaffney said,

See if you got a WP7 phone you would be rich.

Or just Android in general. *cough*Only the phones cost money; you can get the whole OS for free if you have some sort of computer.*cough*