A recent study by Consumer Intelligence Research Partners (CIRP) shows that iPhone users are upgrading their devices more quickly. In the fourth quarter of 2024, 36% of buyers had owned their previous iPhone for two years or less. This is up from 31% in the same period in 2023. The data suggests upgrade cycles are getting shorter.
More iPhone Users Upgrading Sooner
At the same time, fewer users are keeping their iPhones for three years or more. CIRP mainly studies the U.S. market, so these trends may not apply as strongly in other regions. In many countries, carrier pricing and upgrade options differ.
Several factors drive this shift. Trade-in deals and financing options encourage users to upgrade more often. U.S. carriers, in particular, offer attractive promotions. Many customers find it easier to get a new phone every two years instead of holding on to an older model.
Apple’s Strategy and Customer Loyalty
Apple’s sales growth has slowed, so the company is focusing on customer loyalty. Many early upgraders are devoted Apple users who want the latest technology. Meanwhile, those who wait longer may be holding out for a significant new feature or a special promotion.
Is AI Driving Upgrades?
Apple’s new artificial intelligence (AI) features may not be a major reason for the shorter upgrade cycle. Research suggests AI alone is not a strong motivator for iPhone users. Apple Intelligence, the company’s AI system, requires at least an iPhone 15 Pro. Older devices don’t support these features. However, it’s unclear if AI is influencing buying decisions in a big way.
Apple’s Challenge
Apple faces a challenge: iPhones last a long time. Many people keep their devices for years because they still work well. To encourage upgrades, Apple focuses on improvements in cameras, battery life, and AI. These changes make new models more attractive.
If people continue upgrading more quickly, Apple’s strategy is working. The company is making new iPhones feel like must-have devices. Whether this trend continues remains to be seen. For now, Apple appears to be succeeding in shortening upgrade cycles.
