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Although Apple releases a slightly better iPhone model every year, only a relatively small percentage of regular users update their models each year. However, updates with a two-year period are also an exception. Bernstein analyst Toni Sacconaghi recently came up with the surprising finding that the time frame for users to upgrade to a new iPhone model has now stretched to four years, up from three years last fiscal year.

According to Sacconaghi, a number of factors have contributed to the reduced need for users to upgrade to a new model each year, including a discounted battery replacement program or the ever-increasing prices of iPhones.

Sacconaghi identifies the iPhone upgrade cycle as one of the most significant controversies associated with Apple today, and even predicts a nineteen percent decline in active devices for this fiscal year. According to Saccconaghi, only 16% of active users should upgrade to the new model this year.

The extension of the upgrade cycle was also confirmed several times by Tim Cook, who said that Apple customers are holding on to their iPhones longer than ever before. It should be noted, however, that Apple is not the only smartphone manufacturer that is currently struggling with extended upgrade intervals – Samsung, for example, is in a similar situation according to data from IDC. As far as shares are concerned, Apple is doing relatively well so far, but the company still has a long way to go to reach the trillion mark again.

How often do you switch to a new iPhone and what is the impetus for you to upgrade?

2018 iPhone FB

Source: CNBC

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