According to a survey by an online personal finance platform, a lot of consumers are delaying getting a new phone this year due to inflation.

Nearly two out of every three Americans (63%) said they wouldn’t buy a new cell phone this year due to inflation, according to a survey of over 210 respondents that used data normalized by age, gender, and income to ensure the sample would reflect US demographics.

“Inflation is certainly a significant factor in driving down smartphone purchases, but it’s important to recognize that consumers are getting smarter about where they allocate their resources,” Scott Dylan, founder of NexaTech Ventures, a venture capital firm in Manchester, England, said, TechNewsWorld reported.

“With phones lasting longer and more affordable options on the market. inflation may be accelerating a shift that was already happening — where the days of annual upgrades are becoming a thing of the past,” he told.

“It’s important to note that while inflation may delay purchases for some, smartphones have become essential tools for many people’s personal and professional lives. This necessity may lead some consumers to prioritize phone purchases even in challenging economic times,” Dev Nag, CEO and founder of QueryPal, an enterprise chatbot based in San Francisco, added.

Additionally, he told that the trend towards keeping phones longer may accelerate due to economic pressures, potentially impacting the smartphone industry’s traditional upgrade cycles and revenue models.