The Memorylessness of the iPhone Index and Its Global Inequality Revelation

Abstract

Global economic inequality is one of the most important issues across the globe, which has traditionally been measured by macroeconomic indicators like the Gini coefficient, which often lack tangibility. The iPhone Index, which measures the working days required to purchase an iPhone across countries, shows us a compelling and intuitive alternative for assessing disparities in purchasing power. This study investigates whether the 2024 global distribution of this index follows an exponential distribution. The study utilizes datasets on picodi.com in 44 countries, this study employs Maximum Likelihood Estimation (MLE) to fit an exponential model and the Chi-Square goodness-of-fit test to validate it. The results (χ²=1.75, p=0.416) confirm that the data is consistent with an exponential distribution (λ=0.0505). Furthermore, a comparative analysis between the 2023 and 2024 indices reveals subtle yet meaningful shifts in global inequality patterns. This study concludes that the iPhone Index does not adhere to an exponential distribution but also serves as an accessible and interpretable metric for policymakers and researchers monitoring global technological inequality and its evolution over time.