“BTIG’s Apple analyst, Walter Piecyk, cut his revenue and EPS estimates on the company last week due to concerns that the iPhone replacement cycle is lengthening. UBS ’ analyst, Steve Milunovich, brought up the same concern in a March 14 report but note that he kept his March quarter iPhone estimate the same at 52 million on March 22,” Chuck Jones writes for Forbes. “I believe that an elongation of the iPhone replacement cycle is the biggest threat to the iPhone’s financial returns.”
“In a UBS Evidence Lab survey last fall the upgrade cycle had averaged 2.2 years and had lengthened by a small amount while a ChangeWave survey had them lengthening from 2.8 to 3.0 years. AT&T offering a 30 month payment plan is also having an impact (which I discussed with a Costco salesperson last week,” Jones writes. “A small data point but in-line with what others are finding).”
Jones writes, “As the true cost of buying a new smartphone is becoming more apparent it does not surprise me that when someone has their iPhone paid off (or in reality pretty much any other high-end smartphone) that they think twice before they get back on the payment treadmill.”
Read more in the full article here.
MacDailyNews Take: Faithful annual upgraders, which, if any, was/were the iPhone model(s) you skipped?
Was it it the current 6s/Plus that failed to compel you to upgrade or did it happen sooner?