iPhone Upgrade Interest Wanes: Older Devices Last Longer, Consumers Opt to Keep Their Phones

iPhone Upgrade Interest Wanes: Older Devices Last Longer, Consumers Opt to Keep Their PhonesDespite Apple's annual release of new iPhones with compelling features, a substantial number of users are choosing to hold onto their older devices and delay upgrades. According to the latest data from Consumer Intelligence Research Partners (CIRP), over a third of new iPhone buyers in the United States have kept their old phones for three years or longer

iPhone Upgrade Interest Wanes: Older Devices Last Longer, Consumers Opt to Keep Their Phones

Despite Apple's annual release of new iPhones with compelling features, a substantial number of users are choosing to hold onto their older devices and delay upgrades. According to the latest data from Consumer Intelligence Research Partners (CIRP), over a third of new iPhone buyers in the United States have kept their old phones for three years or longer.

Data indicates a slight increase in the percentage of iPhone buyers who own their phones for two years or more, rising from 66% in 2023 to 70% in 2024. This trend reveals a gradual, steady rise, compared to 2019 when only 64% of iPhone users kept their previous phone for two years or longer before upgrading.

Comparing iPhone upgrade data from 2019 and 2024 provides a more direct visual of changed user behavior. In 2019, 38% of users upgraded within 2-3 years, and 26% kept their phones for 3 years or more. By 2024, the percentage of users who held their phones for three years or longer increased to 34%, while those upgrading within 1-2 years dropped from 28% to 25%.

This slowdown in the upgrade cycle is not solely due to a lack of appeal. Although advanced camera systems, faster processors, and exciting software features should entice users to upgrade, these factors appear insufficient to trigger a purchase of the newest iPhone for most consumers.

As iPhones become increasingly reliable, consumers feel less pressure to replace them frequently. Another key factor contributing to slower upgrades is the financial structure surrounding iPhone purchases. Most iPhone users acquire their devices through installment plans, paying over months or even years. CIRP explains, "With installment payments being so prevalent in the acquisition of new phones, holding onto a phone that has been paid off is a very good option. Depending on the purchase promotion, installment plan lengths, model, and configuration, many iPhone users can reduce their monthly phone expenses by $40 or more" after paying off their last installment.

Therefore, for many users, keeping an old, paid-off device and avoiding new installment payments becomes the more economical choice. This could mean Apple needs to reconsider its upgrade-encouraging strategies. Perhaps the rise of AppleIntelligence in the iPhone 15 and iPhone 16 series will attract users to upgrade, but this remains to be seen and will require time and market testing.