People are No Longer Keen on Buying New iPhones, Says Strategy Analytics’ Report

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by Teuta Franjkovic · 4 min read
People are No Longer Keen on Buying New iPhones, Says Strategy Analytics’ Report
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Apparently, consumers in the US, Baby Boomers, in particular, are increasingly delaying their smartphone purchase for three or more years. In addition, the average iPhone now remains active for 18 months, while average Samsung phone – for 16.5.

There were a lot of previous reports about average lasting of Apple‘s iPhone upgrade cycle and its connection with the constantly increasing prices of smartphones. Every report showed that the average period of replacing an old phone with a new one is prolonging. A new report from Strategy Analytics makes similar assertions, claiming that, in the U.S., the average time to upgrade a smartphone now is prolonged to 33 months.

The Strategy Analytics report says that the average iPhone is active for around 18 months, that is a bit longer than the average Samsung phone’s lasting of 16.5 months. The report says:

“According to the latest research from Strategy Analytics, the average Apple smartphone has been active for 18 months and 16.5 months for Samsung. 1 in 5 Caucasians plan to keep their phones for 3 years or more while Baby Boomers increasingly are delaying their smartphone purchase for 3 years+.”

The report also shows only 7 percent of observed individuals specified that they plan to spend more than $1,000 when they decide to upgrade to their next iPhone or another smartphone.

Strategy Analytics VP, David Kerr, noted that user perception of an alteration slump plays a significant role in the smartphone industry change. Kerr added:

“Operators and device brands face significant inertia given consumer perception of diminishing innovation. Vendor pursuit of profitability has seen smartphone prices rising towards and above $1,000.”

Strategy Analytics’ report also shows that the biggest obstacle to 5G will be its price. One out of four surveyed participants admitted that 5G will be an important factor to consider when choosing their next smartphone. From Strategy Analytics they said they’re expecting prices of smartphones to rise together with 5G.

Strategy Analytics report also showed that among dominant brands are Apple and Samsung that can laud with the brand loyalty going above 70%. On the second place surprisingly came LG and Motorola with repeat purchase intentions below 50%.

Also, Apple has been recognized as a leader in South American and Asian markets with market share above 50%. Samsung guides the market share among Gen X but, according to the report, drags behind Apple by almost 40 points especially between Gen Z (millenials) in their intentions to buy.

Among other features, millennials are pretty eager to have a great camera quality of which is significantly more important to women users. Even though new phones will not be having 5G, the new camera is something that may be attractive enough for the iPhone users. Just to remind you, Apple has three new iPhones waiting to be launched. There are “Pro” iPhone models that will replace the iPhone XS, iPhone XS Max and iPhone XR.

The main feature of the Pro iPhones is a new camera system on the back that has a third sensor for capturing ultra-wide-angle photos and videos. The sensors will capture three images simultaneously and use new artificial intelligence software for automatic correction of the combined photo. Pictures will have higher resolution and there is also an upgraded video recording capabilities, almost similar to professional video cameras.

Phones are also equipped with rear-facing 3-D cameras that will boost augmented reality capabilities.

These results may not have come as surprise, at least considering the first two places. It is obviously made only considering the US market and, bearing in mind the ongoing U.S. – Chinese (Asian) trade war, we have to take these reports’ results with a certain caution. You might have noticed that there is no mentioning of Huawei, Oppo, Xiaomi or any Chinese brand whatsoever.

The analysis made by Trendforce put Huawei on the second spot, right after Samsung. Apple came third and then are Xiaomi, Oppo and Vivo that came in the top five. No Motorola and LG included.

At the time of writing Apple (AAPL) stock was down by 4.62% to $202.64. Last week was pretty volatile for the Apple investors and it seems that President  Trump’s meet with company CEO Tim Cook over the weekend still didn’t fell on a fertile ground.

Business News, Internet of Things News, News
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