iPhone users still aren't rushing to buy the latest models

AppleInsider

Despite Apple's constant rollout of flashy new smartphones, like the new iPhone 16 models, millions of users refuse to upgrade, clinging to their older devices for longer than ever.

iPhone 16 and iPhone 16 Pro

Apple unveils new iPhone models each year, which is always a significant event. These new releases, such as the iPhone 16 models in 2024, come packed with new features to entice customers.

However, despite the excitement of these advancements, many iPhone users are holding onto their older devices longer than ever before.

According to recent data from Consumer Intelligence Research Partners (CIRP), over one-third of new US iPhone buyers have held onto their previous phones for three years or longer. The share of iPhone buyers with phones two years old or more has risen slightly from 66% in 2023 to 70% in 2024.

The new data represents a gradual but steady increase from 64% of iPhone users in 2019 who had owned their previous phones for two years or more before upgrading.

A comparison of 2019 and 2024 iPhone upgrade data highlights changes in user behavior. In 2019, 38% of users upgraded within 2-3 years, and 26% kept their phones for three years or more.

Age of previous phone (for the twelve months ending in June each year)

By 2024, the percentage holding onto phones for three years or more grew to 34%, while those upgrading within 1-2 years dropped from 28% to 25%.

Features versus practicality

Whether it's advanced camera systems, faster processors, or exciting software capabilities, these features are supposed to entice users to upgrade. Yet, these features alone aren't enough to drive the majority of consumers to buy the latest iPhone models.

As iPhones have become more reliable, consumers feel pressured to replace them less frequently.

Installment plans

Another aspect of slower upgrades relates to the financial structure surrounding iPhone purchases. Most iPhone users acquire their devices through installment plans, spreading payments over several months or even years.

"In addition, reliance on installment payments for new phone purchases makes keeping a paid-off phone a welcome reprieve, CIRP explains. "Depending on purchase incentives, installment contract length, model, and configuration, after their final payment many iPhone owners enjoy a decrease of $40 or more in their monthly cell phone expense."

It's clear that Apple may need to rethink its strategies to encourage upgrades. Maybe the rise of Apple Intelligence in the iPhone 15 and iPhone 16 lineups will entice customers to upgrade.



Read on AppleInsider

JohnC1959

This is the natural evolution of all new technology.   Same happened with personal computers.    When they first come out they are terrible.   Then experience and a larger base of consumers allows many refinements in the design.    Eventually they just work for 90% of uses.    So a company just incrementally improves while hoping to eventually create some brand new product category to get folks excited again.

CarmB

In today's environment, if you can get years of service out of an expensive device, of course you would. I'm still using  an iPhone 11 Pro Max that I bought new in October of 2019. The original battery still has more than 80 per cent of its original capacity. It's quite capable. It still qualifies for the latest software. Great investment, really, which is not such a bad thing for Apple because I'm thrilled with my purchase. I'll gladly buy another iPhone probably next year. If I had instead spent more than $1,000 on the iPhone 11 and needed to replace sooner, I would have thought twice about sticking with Apple. Apparently there are many iPhone 11 owners out there and I'm betting many of them, like me, are going to be eying a new phone in the next year or two. A good thing for Apple and a good thing for Apple customers all around, from my perspective. 

Fidonet127

I don’t think Apple’s strategy is to get most users to upgrade every year. That puts a tremendous impact on the environment and I don’t think Apple is setup for that much manufacturing. Apple is setup to gain from people sticking around, buying services and when they are ready to upgrade, upgrade. The phones are built to last a bit, so why is it bad to Apple of users that people keep their phones for longer?

DAalseth

CarmB said:

In today's environment, if you can get years of service out of an expensive device, of course you would. I'm still using  an iPhone 11 Pro Max that I bought new in October of 2019. The original battery still has more than 80 per cent of its original capacity. It's quite capable. It still qualifies for the latest software. Great investment, really, which is not such a bad thing for Apple because I'm thrilled with my purchase. I'll gladly buy another iPhone probably next year. If I had instead spent more than $1,000 on the iPhone 11 and needed to replace sooner, I would have thought twice about sticking with Apple. Apparently there are many iPhone 11 owners out there and I'm betting many of them, like me, are going to be eying a new phone in the next year or two. A good thing for Apple and a good thing for Apple customers all around, from my perspective. 

I’m another iPhone 11 user that is hesitating. Sure the 5X camera looks great, and my old handset is showing its age, but it’s working and aside from the charging plug getting finicky and not always charging when I plug it in it’s stone reliable. I’ve been planning on upgrading this year, but now that the 16s are out, I just have no enthusiasm for dropping a few bills on a phone. It feels more like buying tires than getting a great new gadget; you do it when you have to but it’s not really exciting and fun. 

cia

iPhone 13 Pro user here.  Still working fine speed-wise, and thankfully not that dinged up so in pretty good shape.  After the iPhone 16 announcement I went to the Apple Store and got my battery replaced for about $95 after tax.  Phone has great battery life again now, and that $100 bought me probably another 2 years of use as long as I don't break the thing.

erio

With everything else getting more expensive, a new iPhone is the last thing people need when their "old" one still works.

pizzaboxmac

I have a 12 Mini and it's not going anywhere. Quite happy with it.

mike1

I am upgrading my 12Pro. That decision is helped along by the fact that I can get $1,000 trade-in from AT&T. So, if I step up my storage, my monthly payment is only $2.75/mo.

ssfe11

I’ts a no brainer to access Apple Intelligence via upgrade with ATT $1,000 trade in credit. I’m upgrading 5 iPhone pro max to 16 pro max. Each comes to like $5 per month lol. Lets go!!

nubus

There is no excitement. Talked to a few colleagues today that could swap their XR (!) for any model but didn't care. And worse... their kids stopped talking iPhone models 2 years ago. The incessant hyperbole marketing, the lack of improvements (they didn't care about 5G and joked about the number of lenses), the formulaic keynotes, and - as they said "Jobs was a visionary - Cook is just a corporate CEO causing innovation to stall".

Chriskach

During years I was waiting on the pre sale date the time where the ordering process opens.... in-between I find iPhones boring and they look like all other Android phones... it is quite sad for me as I really did like the Apple products. But the creativity has gone, and the products do not bring the excitement they used to when presented during the September Keynote. I even switched to a Z Flip to find something new. Too bad it is working under Android.... I look forward to discover a real new iPhone which brings something fresh...Why changing if it is for an additional button and a few marketing creations....

bloggerblog

I upgraded from an iPhone 10 to a 14. My favorite phone of all time is still the 10

zone

It's barely changed? Also, why would you not get a new phone each year with all these subsidies? It's a very low cost for something people use all the time and one of the most important devices that people own. I will always want each improvement, no matter how small. So many of our possessions are things that don't change features at all, like clothing, shoes, cars, and so on and so on. They might look different but that's all the justification my wife needs to buy more clothing. This is dumb, and almost no reason not to upgrade unless you have no money to begin with. The service is more expensive than the phone...

jib

I agree that people should do what they want and can afford. I personally have been on the Apple iPhone Update Program and get the newest model iPhone each year.  This is what I prefer, and I can afford it.  The iPhone that I turn in is generally refurbished and used for replacements for people needing them. And I enjoy having the latest revisions. But it is my choice -- if I decide not update any year, I can finish off paying for the remainder of the 0% loan and keep the phone.

DAalseth

zone said:

It's barely changed? Also, why would you not get a new phone each year with all these subsidies? It's a very low cost for something people use all the time and one of the most important devices that people own. I will always want each improvement, no matter how small. So many of our possessions are things that don't change features at all, like clothing, shoes, cars, and so on and so on. They might look different but that's all the justification my wife needs to buy more clothing. This is dumb, and almost no reason not to upgrade unless you have no money to begin with. The service is more expensive than the phone...

That’s a fair question. Why not upgrade yearly? I could afford it. In my case though, what I have does what I need. It’s the same reason I drive a 20 year old car: It’s reliable and does what I need. Also, it avoids that fiddling with doing the actual update, transferring data, trading in the old one, and all that. I’m happy with my 11.

araquen

Except Apple does not sell their products for you to buy them every year. I believe Apple stated that they design because every year *someone* will want to upgrade, not *everyone.* So slow adoption is baked in to Apple’s sales assumptions. and the longevity of their devices is part of Apple’s conservation strategy.

You can tell when Apple wants to “shake the tree” by several markers: 1 - how long Apple will support existing hardware (which is pretty long, all things told); 2 - at what point you have a rebate cut-off for trade-in (trade-in being another conservation strategy). If you look to these two markers, you can pretty much gauge what Apple would like the average turnover cycle to be.

The idea that Apple has to sell eleventy billion units to eleventy billion consumers every time Apple has a keynote is an investor desire, and of course, is completely ludicrous. Apple has never let itself be led by the nose like that, and frankly the idea of buying whatever is new in the moment is “fast” (or rather trash) fashion, which causes no end of waste. We should not be pushing the narrative of trash fashion, but rather lauding endurance. Apple having a “slow” sales cycle should be a GOOD thing - because that means they are building product that remains relevant, longer.

I usually get five years out of my devices. The only change was when I upgraded from an iPhone 11 to an iPhone 14 Pro, because, frankly, I figured it would be a long time before Apple offered a purple model again, and I knew the Pro would hold out a good long time. And while my 14 Pro won’t be able to do Apple Intelligence enhancements, I can wait until I need to upgrade. I’m in no rush.

Because aside from every year being a year someone will upgrade their phone, it’s also every year someone will want to upgrade *something* and I believe this year my watch is due for a refresh, and while I hate to lose my blood oxygen meter, the sleep apnea detection is a fair trade-off.

grandact73

Nothing but cope in these comments. Please provide a link proving that Apple's "strategy" is to not sell a new phone every year. You expect us to believe that Apple's marketing strategy is to sell less phones and make less money?

MplsP

My iPhone 13 Pro is almost 3 years old and working great. Would it be nice to have a slightly better camera? Sure, but the key word is slightly. The improvements over the last several years have been incremental, not groundbreaking so you really can't justify upgrading every 2 or even 3 years, much less every year.

This is precisely what makes iPhones such a good value - they are quality products that will last for several years. Apple touts its environmental efforts, but the best thing for the environment is to hang on to the product you have rather than replacing it. Sure, Apple would love it if everyone got a new phone every year, but they don't plan on that. They know people will be keeping their phones and plan accordingly.

jdw

I consider articles like this amusing, mainly because I am in the camp of FRUGAL PEOPLE (yes, we are rare) who actually use an iPhone for 6 six or so.  My last iPhone was an iPhone 7, and I paid Apple once to change the battery.  I purchased the iPhone 15 Pro Max last year.  So it's not like people like me don't upgrade.  We have an upgrade cycle.  It's just not every year, every other year, every three years, or even every four years.  The fact that most people are facing hard economic times and now deciding to forgo spending money they cannot afford to spend is a SIGN OF POSITIVE CHANGE.  Maybe not for Apple.  But for the overall greater good.  People need to have more sense about how to spend money.  I say this as as AAPL shareholder since 1999, who has never sold a single share.  I want people to be loyal to Apple because Apple makes great stuff, and I realize most people shouldn't be upgrading that stuff annually.  But with billions of people buying Apple stuff, that bodes well for Apple in the long run.  So not all is bleak.  And Apple is in no way "doomed."

Fidonet127

grandact73 said:

Nothing but cope in these comments. Please provide a link proving that Apple's "strategy" is to not sell a new phone every year. You expect us to believe that Apple's marketing strategy is to sell less phones and make less money?

Apple expects some people to upgrade every year, and others on a cycle. This is well known that consumers were going this long cycle way for a long time. This is partly why Apple went to services. Apple isn’t making less phones because of this as their market is huge. Apple doesn’t have the capacity to make a new phone for everyone, every year. Then there is sourcing all that material and how to recycle all those phones.