The iPhone upgrades were not triggered by AI. Prices fears have done the trick.

In a surprising turn, it is not AI Flashy features that have finally pushed long -standing iPhone users to upgrade – they are prices.

Wall Street analysts predict a major iPhone upgrade cycle since Apple began to integrate a generative AI in the devices about a year ago. It hasn’t really happened yet.

However, fears of imminent price increases due to the prices led to a significant increase in iPhone purchases in the first quarter of 2025, according to data from Consumer Intelligence Research Partners. It was not a marginal blip.

The percentage of American iPhone buyers retired from phones for three years or over reached 39% during this recent period. It is up 30% regularly in the previous quarters.

“This is a significant change,” said CIRP founders Michael Levin and Josh Lowitz on Wednesday. “The threat of price increases induced by prices has really passed the needle.”

Maybe Tim Cook should thank Donald Trump?

This change marks a significant change in behavior between iPhone users, especially those known to keep their longest devices.

Since the end of the two -year carriers’ grants, and thanks to more sustainable equipment and better battery life, consumers have fun less frequently. But the imminent spectrum of higher prices has changed the calculation for many iPhone owners. Long -term users, generally more concerned with costs than early adopters eager for technology, have decided that it was better to buy now than risk paying later.

Interestingly, fear of the price did not inspire a cover rush to upgrade all types of users. Those who are already upgrading frequently, often after only one or two years, have not significantly changed their models, depending on the results of the CIRP. Instead, it is the “delayers” – users who cling to aging devices – who have made the jump. For them, this iPhone upgrade was less to chase AI innovation and more necessity: replacing a failing telephone before the price is out of reach.

Apple is a utility

The data confirm what I have spoken of BI readers earlier this year: an iPhone is now a public service for most people. We do not care about the new features of Whiz Bang, we just need it do not break During as long as possible, we can manage our increasingly digital lives.

Long -term iPhone owners are not level for the state or the latest camera specifications; They upgrade when they retain longer become risky than make a purchase. This cohort, often overlooked in flashy products launches, had a major impact on Apple quarterly sales.

What remains to be seen is if this bump is a unique blip or the start of a new pattern. If macroeconomic concerns continue to shape technology purchasing habits, Apple and its competitors may need to rethink the way they target and serve this “long” user base. For the moment, however, it seems that a little price fear has greatly contributed to moving a notoriously prudent market segment.

Will the fears of future prices continue to drive these pragmatic modernists in the Apple Store earlier than expected?

Time and prices will say it.