Are iPhones Losing Their Upgrade Appeal? Users Hold Onto Devices for Longer

The iPhone 16 series, unveiled in September 2024, boasted an array of tempting new features, from camera enhancements to improved battery life and advanced AI capabilities. However, this technological leap hasn't spurred users to instantly replace their older iPhones. In fact, recent market data suggests that the opposite is happening. Apple enthusiasts are holding onto their devices for longer, prompting a closer look at the changing dynamics of the iPhone market.

Holding Onto iPhones for Longer Than Ever Before

In the United States, a growing number of Apple fans are in no rush to upgrade. Consumer Intelligence Research Partners (CIRP) reports a significant increase in users keeping their iPhones for extended periods. Data shows that the percentage of users who own iPhones for two to three years or more has climbed to 34%, up from 31% in 2020. Additionally, users who have kept their iPhones for two years but less than three years also saw an increase, reaching 33% compared to 30% in 2020.

Conversely, the percentage of users upgrading within one to two years decreased from 28% in 2020 to 25% in 2024. The number of users upgrading annually has also experienced a drastic drop, settling at only 8% in 2024.

Shifting Motivations for Upgrading

The motivations behind purchasing a new iPhone have also shifted. While new features were previously a primary driver, the data tells a different story. Currently, around 75% of respondents stated that they replace their phones because their old devices are outdated, lost, damaged, or stolen. Other issues such as declining performance, malfunctioning batteries, or physical damage have also become primary reasons.

Only about 18% of users cited new features as the main reason for upgrading.

Why are iPhone users choosing to keep their phones longer?

The age and condition of their phones have become more significant factors in the decision to upgrade. Previously, many users upgraded because of new features, but this is now less common.

What percentage of iPhone users have kept their phones for two to three years or more?

34% of iPhone users have kept their phones for two to three years or more. This number has increased from 31% in 2020.

What was the primary reason for upgrading iPhones in the past?

In the past, new features were the primary reason for upgrading.

How has the percentage of users upgrading within one to two years changed since 2020?

The percentage of users upgrading within one to two years has decreased from 28% in 2020 to 25% in 2024.

How has the percentage of users upgrading annually changed since 2020?

The percentage of users upgrading annually has drastically decreased from 28% in 2020 to only 8% in 2024.

A New Reality for iPhone Upgrading

The trend of users holding onto their iPhones for longer periods suggests a significant shift in consumer behavior. The age and condition of their devices are now major factors influencing their upgrade decisions. As the new iPhone features become less compelling as a primary driver, Apple faces the challenge of understanding this evolving landscape and potentially redefining its upgrade strategies to cater to the evolving needs of its loyal users.