iPhone owners are delaying device upgrades significantly

A recent study shows that iPhone owners are delaying upgrades to their phones. This trend could negatively impact Apple’s stock performance. UBS, an investment bank, conducted a survey revealing that the average age of an iPhone in the United States is now 35 months, or nearly three years. The trend is similar in other countries. In Japan, the average iPhone age is about 40 months, and in the U.K., it stands at around 37 months. The average age of iPhones has been rising for five years. UBS analyst David Vogt noted that the absence of a strong upgrade cycle, driven by new AI features, is affecting Apple’s stock. Overall, the average age of iPhones in the U.S., U.K., and Japan has increased by three months over the past year, now averaging 37 months. In contrast, upgrade rates in China are higher, with the average iPhone age there being about 23 months. For the survey, UBS spoke to around 4,000 iPhone users across four different markets. Vogt maintains a neutral outlook on Apple stock, setting a 12-month price target of $236. Today, Apple shares rose by 1.1%, closing at $220.73. The survey also found that as the iPhone base ages, fewer users are adopting newer services. Established offerings like iCloud and Apple Music continue to grow, while others like Arcade, Fitness, and Apple TV+ have leveled off. Notably, Apple News+ has seen a decline in usage.