CIRP: iPhone sales may decline, but customers will spend more money on larger storage space

Despite analyst concerns about falling iPhone sales, consumers choosing to upgrade storage devices offers a glimmer of hope for Apple to maintain the average selling price of its devices. In the September 2023 quarter, about 44% of iPhone buyers chose to upgrade from the base storage model, which is consistent with historical trends and marks a recovery from the decline in 2023.

A new report from Consumer Intelligence Research Partners (CIRP) shows that despite the earlier popularity of basic models with lower storage capacity and price, people are preferring higher storage models.

The shift in storage preferences reflects changes in consumer behavior. Initially, the need for more storage space was driven by the growing size of operating systems, application libraries, and media collections.

The bar graph shows the percentage change over time, with the bars for 2019-09 (40%), 2020-09 (45%), 2021-09 (59%), 2022-09 (43%), and 2023-09 (44%). The graph is labeled with the logo of Consumer Intelligence Research Partners, LLC.

Percentage of iPhone buyers who chose enhanced storage in each quarter in September

In the past, the rise of iCloud storage and streaming services such as Apple Music temporarily reduced the need for more storage space. However, users are increasingly seeking "future-proof" devices to meet changing technology needs and consider extending purchase contracts and usage periods.

Apple's iPhone has always been the focus of market analysts. For example, a report on January 8 pointed out that analysts believe that the market prospects of iPhone 15 are slightly inferior to its predecessors iPhone 14 and iPhone 13.

According to analysts’ observations, iPhone revenue will decrease by 2% year-over-year in 2023. Therefore, they believe that weak iPhone sales during the holiday season will have an impact on Apple’s first fiscal quarter of 2024.

But CIRP's new report shows once again that Apple always manages to bounce back from adversity.

From cnBeta.COM