Apple Intelligence Potentially Driving Shorter iPhone Upgrade Cycles

Apple Intelligence Did The Trick But Took Its Sweet Time, As More iPhone Users Are Now Upgrading To The Latest Model Instead Of Sticking With Their Device Longer

Apple has been offering various upgrades to the iPhone, and with each successive release, the company aims to offer hardware that can bolster software updates for several years. Over the years, the overall iPhone experience has been streamlined, which means users do not need to upgrade to the latest model every year. It was previously noted that users have been keeping their iPhones for more than 2 years, and it makes sense for them to do so as every successive release only offers marginal upgrades. It appears that this trend is reversing its course as the iPhone upgrade cycle has been getting shorter again, and we believe that Apple Intelligence, along with a few other factors, could be the reason why. According to new research conducted by CIRP, it is reported that iPhone users are now upgrading their devices at a slightly faster rate than before, reversing the years-long trend of a longer upgrade cycle. Based on the data collected until December 2024, more users retired their iPhones earlier than the previous years. Statistically, 36 percent of users who bought a new iPhone during the time period used their older iPhone for 2 years or less. Previously, 31 percent of users were inclined to upgrade to the newer model during the same quarter in the previous year. Moreover, 33 percent of users kept their previous iPhone for at least 3 years. This is a notable shift from past trends of the iPhone upgrade cycle, and the deviation could be due to many reasons. The research firm states that the iPhone upgrade cycle is now at the same level as in 2020 when users would upgrade their iPhones after every two years. While the report cites that carrier promotions and incentives are among the reasons why this has happened, Apple also introduced another feature that could have possibly made people change their minds. Apple Intelligence was released to the public in September of last year, and the company is gradually rolling out more features. The company's suite of AI features is only available on the latest iPhone models, starting from the iPhone 15 Pro models. This means anyone who wants to use Apple Intelligence must have an iPhone 15 Pro or any model of the iPhone 16. This could have given people the push they were expecting to upgrade to the latest models. However, we also have to take note that Apple's financial performance reflects a different story, as iPhone sales have been on a decline. This could mean that users who are upgrading to the latest models might be the ones corresponding instead of the casual users. While there are numerous reasons for this, Apple Intelligence appears to be the main one causing a deviation in the iPhone upgrade cycle. We will share more details on the matter soon, as soon as further information is available.

iPhone users are upgrading devices faster now, likely for Apple Intelligence - 9to5Mac

In the early days of the iPhone, users upgraded their device especially often. But as the product matured, and carrier deals changed, the 'upgrade cycle' started getting longer. Now, it seems, that trend is starting to reverse. CIRP's latest report highlights a change in iPhone upgrade patterns seen during the most recent quarter, ending in December 2024. Michael Levin and Josh Lowitz write: There were more iPhone buyers retiring "younger" phones compared to earlier quarters. Specifically, 36% of iPhone buyers in the December 2024 quarter reported having their previous phone for two years or less, compared to 31% in the December 2023 quarter. Conversely, slightly fewer buyers had a phone for three years or more (33%) or for two to three years (30%) compared to 2023. The shift from 2023 to 2024 was divided evenly between these two categories. For years, investors and analysts have stressed over the question: "How often are users upgrading to a new iPhone?" It's an important question. If you have a lot of people buying a new iPhone every two years, that will make a huge sales impact. But if users hold on to their iPhone for 3, 4, 5+ years, there's a similar impact in the wrong direction. CIRP's data seems to show what I suspect is an Apple Intelligence impact. Users of the iPhone 15 (non-Pro) and older had AI features as a fresh incentive for upgrading sooner than they might otherwise. This theory is supported by Tim Cook's recent statement that the iPhone 16 was outperforming the iPhone 15, and sales were especially strong in markets where Apple Intelligence had launched. What do you attribute the changing iPhone sales trends to? Do you think it's Apple Intelligence, or not? Let us know in the comments.

The iPhone upgrade cycle is speeding up. Is this the Apple Intelligence effect?

Apple has expressed hope that Apple Intelligence will accelerate the iPhone upgrade cycle. A new report suggests that the AI software may be achieving this goal, at least by a little bit. According to the latest Apple Report from CIRP, consumers are trading in their iPhones for newer models at a faster rate. This is encouraging news for Apple since customers have been keeping their phones for longer periods in recent years. Recommended Videos In the most recent quarter, a higher percentage of iPhone buyers upgraded from "younger" phones than in previous quarters. Specifically, 36% of iPhone buyers by the end of 2024 reported having their previous phones for two years or less, up from 31% a year earlier. Please enable Javascript to view this content How do we know this positive trend can be attributed to the introduction of Apple Intelligence with the iPhone 16 series? We can't. However, it's likely a contributing factor, especially since Apple advertisements released in the past eight months have featured the new software prominently. It's still too early to draw definitive conclusions. Additionally, surveys like the one from CIRP do not rely on actual iPhone sales figures, which have not been particularly strong for Apple in recent quarters. In the December quarter, for example, Apple's iPhone revenue was reported at $69.1 billion, slightly down from $69.7 billion in the same period a year earlier. Several signs suggest a positive trend. First, the December quarter marked the first time the entire iPhone 16 lineup was available for purchase after its launch in late September. Second, Apple Intelligence has not been fully released despite being heavily promoted. Instead, its features are being introduced gradually through software updates, with more expected in the coming months. As such, there could be buyers waiting for all the parts to be released before purchasing. Additionally, it should be noted that Samsung saw an improvement in its phone sales last year for the first time since 2018. This increase is primarily attributed to the phone's new AI offerings, which began to roll out months before Apple's, suggesting the iPhone maker's AI-inspired uptick is only delayed. Another reason for optimism unrelated to Apple Intelligence is the anticipated release of the iPhone 17 Air this fall, which will be its thinnest iPhone to date. In the coming years, Apple is expected to launch thinner iPhones, including foldable models. This new hardware should contribute to an overall increase in iPhone sales over the long term.