7 Critical Reasons iPhone Owners Aren’t Upgrading

Apple on Wednesday revised its 2018 holiday quarter revenue guidance by about $5 to $9 billion. Mostly, that's because people in China didn't buy as many iPhones as Apple thought due to a weakening economy and trade tensions.

But Apple also noted that upgrade demand was lower in other "developed" markets, too. That likely includes the U.S., Canada and Western Europe, among other regions where Apple typically does well. So what's the deal?

There are at least seven key reasons why users across the globe might not be upgrading. Continue reading to learn 7 Critical Reasons iPhone Owners Aren’t Upgrading.

7 Your Apps Look the Same

Think about the usual tasks and activities that the average smartphone user does. That probably includes some combination of text messaging, calling, social media, web browsing and email. Those are, of course, all things that every modern smartphone can do.

You can access Facebook or Snapchat whether or not you use an iPhone 6 or an iPhone XS Max — and those apps will largely look the same on both devices. Until there’s something incredibly popular that just can’t be done on older smartphones, those devices will likely continue to be used by consumers who aren’t swayed by the latest and greatest tech.

6 Smartphones Are Now Utilities

When you buy a new toy, device, or another cool gadget, you’ll usually be pretty excited. At one point in time, smartphones fit into the “shiny” and “new” categories — but not anymore. Everyone has a smartphone, and more than that, everyone actually feels like they need to have one.

That has likely pushed smartphones into the realm of utilities. In other words, they’re just aren’t as exciting anymore because they’re just something that you need to have to get by. We're not consumer psychology experts, but it’s worth venturing that the thrill or joy of getting a smartphone has subsided.

5 iPhones Last a Long Time

There was, and may still be, pressure on consumers to upgrade their devices every couple years or so. But smartphones — and iPhones in particular — actually last much longer than that. Judging by the decrease in upgrades, consumers may finally be realizing that fact.

One could attribute that, at least partly, to build quality or robustness. But it’s likely due in large part to the fact that iOS devices are stunningly fast. When they debut, they’re often the fastest on the market. But even as they age, their powerful processors and internals allow them to keep up with newer tech.

4 Apple Boosted Old Devices

Sure, iPhones last a while on their own, but they’re just as subject to becoming obsolete as any technology as the years go on. But over the last couple of years, in the wake of Batterygate, Apple took steps to actually extend the lifespans of its devices in the wild.

That includes battery health tools and discounted battery swaps that can keep an iPhone performing at peak capacity longer. It also includes iOS 12, which significantly boosted the performance of older iPhones. That may not be the best for hardware sales, but it’s certainly great for Apple’s broader sustainability initiatives and environmental goals.

3 Incremental Upgrade-ism

One of the other factors that are likely driving consumers to hold onto their iPhones a bit longer is the fact that many years only feature incrementally upgraded iPhones. In Apple parlance, some years are “S” years — where the flagship model only contains small updates.

Last year, for example, Apple’s iPhone XS only sported minimal updates over its iPhone X predecessor — like an upgraded CPU and camera. Faced with these relatively unexciting upgrades, consumers may be opting to hold onto their devices for longer while they wait for the truly innovative refreshes. That's especially true as iPhone prices rise.

2 5G Isn’t Here Yet

Speaking of incremental upgrades, the next big innovation in mobile and wireless technology is expected to be 5G. While many carriers are boasting about the 5G revolution, it will likely take several more years for the next-generation technology to actually reach the majority of consumers.

Apple, for its part, isn’t going to release a 5G iPhone until 2020 at the earliest. Similarly, many consumers in rural and less densely populated areas won’t get access to 5G until that year at least. In other words, the next big thing in smartphone tech isn’t here yet and won’t be for a while. And in the interim, 4G LTE is plenty fast enough to do basically everything that a consumer would want.

1 Economics and Lack of Carrier Subsidies

Apple, in its letter to investors, cited its own reasons for the lack of upgrades. For one, it said that discounted battery replacements likely impacted upgrade rates — even if the end result of those battery replacements is good for Apple’s brand image as a beacon of sustainability.

But the firm also attributes slower iPhone sales to “macroeconomic conditions” and lack of carrier subsidies. On that last point, it is worth noting how the market has shifted. You could once buy a subsidized iPhone at a hefty discount with a contract.

These days, you just have to rent or finance that phone and pay it off over a certain period. Shelling out $40 a month to lease a new iPhone XS Max, on top of paying for the wireless plan, might not sound appealing to many would-be upgraders.