After experiencing a drop in revenue from iPhone sales, Apple has always wanted to bring out the best in this situation. Undoubtedly the positive thing that can be drawn from the current situation of the company is that the base of active iPhone is increasing and that is why they have wanted to strengthen their services and to get here an escape route to the economic slowdown they are suffering.
It is clear that users do not change their mobile devices as often as they used to. Certainly spending more than 1000 euros a year is not something we like to do too much and that’s why we’re making the decision to extend the life of our device until it starts to malfunction and not make the change as a simple whim.
A mobile device can currently last many years and if we don’t use it very intensively many more. This has been noticed in the iPhone sales of these quarters but also in the rest of the brands being this a trend of the general market. As a result of this today the new study by Consumer Intelligence Research Partners (CIRP) shows that the number of active iPhones in the US is increasing in response to this new user philosophy.
As you can see in the graph in the US during the first quarter of the year there were 193 million active iPhone units, which is a slight increase from the previous quarter when there were 189 million active units. If we look at the graph in a general way we can clearly see a rather slight but constant quarterly growth since 2016.
Although this base continues to grow, the truth is that is slowing down in parallel with the slowdown in iPhone sales these quarters. This does not please investors who are used to a much higher growth of 5% or more but now we are looking at 2%.
This only puts more pressure on Apple to focus on their new services in order to compensate for the loss of iPhone sales that we have seen and that are confirmed by this new data. So far Apple has never given official data on the active device base although they did mention in Q1 2019 that they had 900 million active iPhones worldwide.