Last week we saw a report from CIRP on Apple achieving an all-time high iPhone average selling price. Today, the firm released a study showing how long Apple users are keeping their iPhones before upgrading, here’s what the results show.
While Apple scored a new iPhone average selling price record near $1,000 and saw a record March quarter this year for iPhone revenue, the new report from CIRP suggests the company could see slowing demand for its smartphones.
From 2019 to 2021, Apple customers held onto their phone longer and longer with 34% of them having an iPhone that was three years of age or older.
Interestingly, that trend seemed to abruptly reserve in 2022, however, the latest data from March this year shows the majority of Apple users reporting they’re holding onto their iPhones for 2-3 years or longer.
March 2021 was still the peak for the average age of iPhones but the 2023 results are moving back near those numbers.
In explanation of all the upgrades that appeared to happen in 2022, CIRP believes it was likely a mix of COVID-induced iPhone purchases, government stimulus checks, “and the interruption of travel and entertainment spending helped consumers afford newer models.”
The report also highlights that those factors may have lined up with “more aggressive trade-in programs that offered exceptional value for relatively new used phones as well.”
We’ll have to wait and see how this trend of keeping iPhones for longer plays out in the months and years ahead.
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