There could be a couple of good reasons why iPhone users aren't holding on to their devices as long
Apple iPhone users traditionally hold on to their phones for a longer period than Android owners. One reason for this could be the cost of buying an iOS-powered handset. According to Consumer Intelligence Research Partners, LLC (CIRP), excluding the COVID years of 2020 and 2021, the holding period for iPhone units has steadily increased every year since CIRP started tracking this data in 2014.
In the most recently completed quarter, which ended on December 31st, 2024, CIRP's survey showed that 36% of iPhone owners had their phone for two years or less. The December 2023 quarter showed that only 31% of the iPhone owners surveyed owned their iOS-powered handset for two years or less indicating that more people were holding on to their iPhones for a shorter period of time.
Apple iPhone owners are selling their devices earlier than they usually do. | Image credit-CIRP
Looking at the data another way, fewer iPhone buyers (33%) had their iPhone for three years or more or two to three years (30%) compared to the same quarter in 2023 (36% and 33% respectively. One reason for this shift could be Apple Intelligence. Apple's AI initiative. Apple Intelligence is available only on iPhone models with 8GB of RAM such as the iPhone 15 Pro, iPhone 15 Pro Max, and the iPhone 16 series.
It's quite possible that those with an older iPhone model that isn't compatible with Apple Intelligence decided to retire their older iPhone and replace it with a model that works with Apple's AI capabilities. There are other possibilities as well. Special deals for the latest models offered by carriers might also have given iPhone owners a powerful incentive to trade in their handset. For example, my wireless provider offered me a deal I couldn't refuse for my iPhone in 2023 allowing me to upgrade to an iPhone 15 Pro Max for an amazing price.
Late last month, Apple reported fiscal first-quarter iPhone sales that dropped to $69.14 billion from $69.70 billion during the same quarter the previous year. Wall Street was expecting Apple to report $71.03 billion in handset sales. Considering that this quarter included the holiday shopping season, it was a major disappointment for Apple and Apple Intelligence. Apple has been promoting Apple Intelligence with its new iPhone 16 line and the tech giant-like most analysts-were expecting more iPhones to be rung up during the three months.
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