Posted by: jhamon | June 30, 2009

America to Apple: I Want It and I Need It FREE!

It seems to me that the watchcry of the old debt-driven America was “I want it and I want it NOW!” – McMansions, Land Rovers and Lexuses, HUGE TVs, iPhones and BlackBerries – all purchased with easy money.  In the blink of an eye, Americans have become savers.  The Financial Post reports that in May, the US savings rate spiked to 6.9%.  See the huge spike in the leftmost chart below.

An Epic Spike in US Savings

An Epic Spike in US Savings

The new American catch phrase is “I Want It and I Need It FREE!”  Here’s an example of how this new-found thriftiness affect people’s every day decision-making.  Apple’s new 3.0 software upgrade for iPhone and iPodTouch is a big deal

Interestingly, Apple is providing 3.0 FREE to iPhone users while they are asking a measly $10 from the iPoddies.  Heck, that’s less than the price of 3 Venti Soy Caramel Machiatto Half Caf Specialty Drinks at Starbucks!  (That’s a disheartening long term stock chart, though our ARES model has been long since early February).  But I digress…

The proof that people are saving?  Look at the difference in upgrade rates between the iPhone (FREE) and iPod ($10):

iPhone vs. iPod Touch OS Upgrade Rates

iPhone vs. iPod Touch OS Upgrade Rates

More here.  Americans are actually deciding NOT to spend $10. I miss 2005.

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