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.
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.
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.
