Report shows iPhone owners are getting rid of their phones faster

Summary

Consumers are upgrading their iPhones at a faster pace, a new report finds.
According to data from the report in the quarter ending in December 2024, 36 percent of iPhone users reported having their previous iPhone for less than two years, up from 31 percent the year earlier.
Reasons behind early upgrades remain unclear. It could be carrier deals, Apple Intelligence features, or “dedicated iPhone owners” deciding to upgrade more quickly.

Usually, when you purchase an expensive new iPhone, you’ll likely try to keep it for as long as possible before considering an upgrade. However, for some users, that doesn’t seem to be the case anymore.

According to a new Apple Report from the CIRP (Consumer Intelligence Research Partners), consumers are holding onto their iPhones for shorter amounts of time than in previous years. By the end of 2024, 36 percent of iPhone buyers reported having their previous iPhone for two years or less, up from 31 percent a year earlier.

While not a giant shift, it does indicate that some iPhone owners are choosing to upgrade faster than the usual two or three-year cycle. The CIRP attributes the shift possibly to carrier deals.

“What accounts for the recent shift? A range of factors may help explain it, including ongoing deals from carriers and continuing incentives to upgrade a previous phone around two years after it was purchased, even for those with longer installment purchase agreements,” the CIRP said in its report.

Apple iPhone 16

Brand: Apple
SoC: A18 (3nm)
Display: 6.1-inch Super Retina XDR OLED, HDR10, Dolby Vision, 1000 nits (typical), 2000 nits (peak))
Storage: 128GB, 256GB, 512GB
Ports: USB-C
Front camera: 12-megapixel, f/1.9, 23mm (wide), 1/3.6″, PDAF

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There are other reasons users could be deciding to upgrade their iPhone sooner rather than later other than carrier deals. Apple did introduce Apple Intelligence last year, its new suite of AI tools, that are central to the latest iPhone 16 lineup. It’s possible the desire to try out these AI features may be the reason why some users upgraded their iPhone faster than usual, but that isn’t certain.

It’s important to note that the CIRP report is based on a survey of consumers rather than on iPhone sales, making it difficult to assert whether this trend will continue. In its last quarter, Apple’s iPhone revenue declined to $69.1 billion, down from $69.7 billion the previous year. So, the two trends don’t exactly correlate. The CIRP report notes it could just be “dedicated iPhone owners” buying phones more quickly. However, a recent Canalys report indicates that the global smartphone market saw year-over-year growth of seven percent in 2024, the highest growth rate since the pandemic, which could signal that users are starting to become more willing to purchase new devices sooner.

Apple is probably hoping its iPhone 17 series, including the iPhone 17 Air, will entice users to upgrade their phones earlier as well. The upcoming iPhone SE, anticipated to be released shortly, may also attract budget-conscious users looking to upgrade too.