Apple iPhone 16 launch highlights growing trend of longer iPhone ownership

USA data

The CIRP data reveals that over the past year, more than one-third of U.S. buyers of new iPhones had owned their previous device for three years or more. Interestingly, less than one-third of buyers replaced a phone they had used for only two years or less. In 2023, 64% of buyers were replacing phones that were two years old or older, but this figure increased to 67% in 2024. This is a significant change from five years ago, when only 61% of buyers owned a phone of this age.

Apple iPhones: better quality

Several factors are driving this extended ownership trend. One of the primary reasons is the durability and reliability of modern smartphones, which allow users to keep their devices in good working condition for longer. Furthermore, installment plans for smartphones give buyers a financial incentive to hold onto their devices once payments are complete. A paid-off phone translates to reduced monthly expenses, a welcome relief for many consumers.

In previous years, generous upgrade incentives, especially during the introduction of 5G technology, accelerated the purchase cycle. Without similar compelling incentives today, the trend of extended ownership appears set to continue. And all this will mean that newer models are later available for trade-in. In other words, the product mix of available used phones is going to change dramatically with less newer models in the supply chain. This will have no impact in overall volume.

Source: CIRP Apple Report