iPhone Users Upgrading Faster For Apple Intelligence

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In the initial years after the iPhone’s launch, consumers frequently upgraded to newer models. However, as the device evolved and carrier offers changed, the frequency of upgrades began to extend. Interestingly, this trend appears to be reversing.

Shorter Upgrade Cycles for Many iPhone Users

According to a recent report from CIRP, there has been a notable shift in how frequently iPhone users are upgrading their devices, particularly observed in the quarter ending December 2024.

In the analysis by Michael Levin and Josh Lowitz, they noted:

A growing number of iPhone purchasers are retiring their phones at a younger age compared to earlier periods. In the December 2024 quarter, 36% of respondents had their previous phone for two years or less, an increase from 31% in December 2023.

On the other hand, there has been a slight decline in the number of users keeping their phones for three years or longer (33%) or between two to three years (30%) compared to the previous year. The drop in the 2023 to 2024 timeframe was evenly distributed between these two groups.

The frequency of iPhone upgrades has long been a crucial area of focus for investors and analysts alike.

This question bears significant importance.

If many consumers are opting for a new iPhone every couple of years, sales figures will undoubtedly be affected positively. Conversely, if users retain their devices for three, four, or more years, the sales impact could be negative.

Insights from 9to5Mac

The data from CIRP appears to suggest that advancements in Apple’s AI capabilities have played a role in this shift. Users of the iPhone 15 (non-Pro variant) and older models may feel incentivized to upgrade sooner, motivated by the introduction of these new AI features.