Longer upgrade cycles and an increasing number of consumers opting to buy used models poses a threat to future sales of flagship models from the likes of Apple and Samsung, argue industry commentators.
Back in 2014, the average upgrade cycle was 23 months – likely attributable to most consumers upgrading every two years, while a much smaller number upgraded every year. But that number has already hit 31 months, says BayStreet Research, and is set to climb higher still …
The WSJ cites the firm predicting a 33-month cycle by next year.
Additionally, a growing number of people are opting to buy older, used phones rather than splash out on the latest and greatest model.
One firm with plenty of its own data to go on says that while people still want iPhones, they don’t necessarily see a need for a new one.
The firm says that it used to ship half its used phones overseas, but it now sells almost all of them to Americans.
Samsung is even thinking of tackling the issue head-on.
Apple’s preferred approach is to aim to offer new iPhones at all price levels, from the iPhone SE at $349 to the top tier iPhone X at $1,149. Commentators seem to think the jury is out on whether this strategy will be enough to overcome the sluggish market.
