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In recent years, analysts and investors have anticipated a cycle of renewal of the monster of the iPhone that has not yet manifested. The first false alarm, so to speak, came with the release of the iPhone 7 in 2016. At the time, industry observers believed that the record wave of iPhone buyers 6 in 2014 would lead to an even greater upgrade cycle once these two-year contracts expired.
The next false alarm came with the release of the iPhone X 2017. At the time, many thought that the new form factor of the iPhone would cause an avalanche of upgrades. However, things went a little differently. The iPhone X has not set a sales record, and the subsequent release of Apple's 2018 range of iPhone has seen a decline in iPhone sales from one year to the next.
The main problem is simply that iPhone users keep their devices longer than ever before. The reality is that the era of users who upgrade their devices every two years is seemingly long gone. At this point, a new research report from the Strategy Analysis reveals that smartphone users in general have been keeping their devices for almost three years before upgrading. The upgrade cycle is even longer for baby boomers.
According to the latest research from Strategy Analytics, the average Apple smartphone has been in business for 18 months and 16.5 months for Samsung. One in five Caucasians plans to keep their phone for 3 years or more, while baby boomers are steadily delaying the purchase of their smartphone for more than 3 years.
A longer refresh cycle for iPhones was inevitable. The period of generous subsidies to carriers is over and the reality is simple: today, phones are simply more reliable than older models. In addition, the most recent versions of the iPhone have been somewhat incremental in nature since it's been a while since we've seen a revolutionary new feature change for the iPhone. It should be noted that this is not a problem that affects only Apple, it is a problem that all handset manufacturers are facing.
Strategy Analytics Vice President David Kerr added that the impending 5G revolution may not help set new sales records, as soaring premium handset prices will likely be a limiting factor.
"Operators and device brands are facing significant inertia given consumers' perceptions of decreasing innovation or marginal value-added in successive generations of flagship devices," Kerr said. "At the same time, the search for profitability of sellers has led to a rise in smartphone prices of more than $ 1,000. The prices of 5G phones will be a major barrier, although one in four will recognize it as important for their next device. "
In light of all this, the imminent release of the iPhone 11 will probably not break new sales records, even if the iPhone 11 Pro, which would have made its rumors – with its three cameras – seems particularly intriguing. Incidentally, the iPhone 11 version invades us. Although Apple has not sent any formal invitation to its annual media event, rumors are that the device will be unveiled on Sept. 10 and sales are expected to begin Sept. 20.
All in all, Apple expertly manages the slowdown in iPhone sales and continues to focus on its growing and increasingly profitable line of services. In addition, the company has seen impressive growth in its notebook lineup, with Apple Watch sales continuing to grow each year.
Image Source: Photo by JIM LO SCALZO / EPA-EFE / Shutterstock
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