“There’s a good deal of pressure on the iPhone 8,” Emily Bary writes for Barron’s. “After disappointing upgrade cycles following the iPhone 6S and iPhone 7 launches, there are a lot of old phones out there. Investors are hoping that this fall’s new models will prompt a ‘supercycle’ of upgrades, especially because some could cost more than $1,000.”
“Of the 715 million iPhones currently in use — the number of phones making up Apple’s ‘installed base’ — 31% will have gone ‘un-upgraded’ for more than two years by the time the new iPhone comes out in September, according to BMO Capital Markets,” Bary writes. “That’s up from 25% at the time of the iPhone 7 launch.”
Bary writes, “The number of second-hand iPhones might increase to 300 million in 2018 from 228 million at the end of 2016, BMO analyst Tim Long predicts, as people switch from ‘mass-market Android phones.'”
Read more in the full article here.
MacDailyNews Take: Second-hand iPhone sales mean more “Services” revenue for Apple. iPhone is a snowball that’s really just started rolling down a very, very big mountain!