Apple’s iPhones have long been a highly sought after and desirable product, and to a certain extent they still are. However it seems that as far as purchase intent is concerned, those figures have slumped considerably. This is according to a survey conducted by UBS which found that purchase intent for iPhones are at a 5-year low.
According to the survey which interviewed 6,900 consumers across five countries, they found that intention to buy a new iPhone was “down across the board”. For instances in the US, only 18% of those surveyed said that they planned to buy an iPhone in the next 12 months, which is down from 21% from last year. It is also close the 17% mark that was surveyed back in October, 2015.
This is also applicable to China, one of Apple’s larger markets, where 23% stated their intent to buy a new iPhone. This is down by 6% compared to last year’s figures. According to UBS analyst Timothy Arcuri, “Investor expectations for this iPhone cycle are muted. Consensus estimate for iPhones in 2019 is for roughly 2 percent unit decline and about 1 percent revenue growth.”
UBS’ survey seems to be in line with recent data revealed by Mixpanel, which showed that adoption of Apple’s new iPhones are considerably lower compared to its predecessors. However like we said then, Apple’s new iPhones are priced pretty high which we imagine means higher margins, so even if sales are down, Apple could still manage a profit.