Apple iPhone owners are waiting longer to upgrade their handsets, according to a new study. And that is a negative for Apple stock.
Investment bank UBS said its latest consumer survey showed that the average age of an iPhone in use in the U.S. is now 35 months, or 2.9 years.
IPhone owners are holding on to their handsets even longer in Japan and the U.K. In Japan, the average age of an iPhone in use is about 40 months (3.3 years). In the U.K., the average iPhone age is about 37 months (3.1 years).
The average age of the iPhone installed base has trended higher for the past five years, UBS analyst UBS analyst David Vogt said in a research report Sunday. The lack of an AI-driven iPhone upgrade cycle has been an overhang on Apple stock lately.
In aggregate, the average iPhone age in Japan, U.K. and U.S. has risen three months in the past year to about 37 months today, he said.
Upgrade rates are higher in China, where the average age of an iPhone in use is about 23 months or 1.9 years.
For its report, UBS surveyed about 4,000 iPhone users total, or 1,000 in each of the four markets analyzed.
Vogt reiterated his neutral rating on Apple stock with a 12-month price target of 236.
On the stock market today, Apple stock rose 1.1% to close at 220.73.
Another finding of the consumer survey was that attach rates for services on the iPhone have moderated as the iPhone installed base ages.
More established offerings like iCloud and Apple Music have the highest attach rates and have steadily grown. Meanwhile, other services like Arcade, Fitness, Podcasts and Apple TV+ have plateaued. And Apple News+ has declined.
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