Apple iPhone 11 follows the path of its predecessor in the U.S.
Apple iPhone 11 made up 37% of U.S. iPhone sales during the first quarter
CIRP also released data showing that iPhone owners are not upgrading to the newest model as quickly as they used to. For example, four years ago only 12% of iPhone users kept their handset for three years or longer before upgrading. The most recent information collected during the first quarter of this year shows that 28% of iPhone users are keeping their device for three years or longer before moving on to the newest model. This is the reason why Apple began working on enhancing its Services unit which is expected to bring in close to $50 billion in revenue for the current fiscal year. It was a smart move to rely on the recurring subscription fees from Apple Music, Apple News+, and Apple Arcade. The number of active iPhone units is roughly 1 billion.
Mike Levin, CIRP Partner, and Co-Founder said, “We see clearly how iPhone owners now keep their phones for increasingly longer time. In the most recent quarter, 28% of buyers kept their old phone for three years or more, compared to only 12% four years ago. A steady high single-digit percentage of iPhone buyers upgrade their phones each year. So, the good news for Apple is, consumers increasingly buy mostly the newest, more expensive phones. But, they now keep those phones for a much longer time, well past the typical two years from a few years ago. This slows the upgrade cycle and reducing (sic) unit demand in a saturated market.”