Apple’s iPhone demand has hit its lowest level in a decade, according to a global survey conducted by UBS. Only 17% of respondents indicated they plan to buy an iPhone in the next 12 months, marking the weakest reading in 10 years. The data suggests that consumer interest in AI-powered smartphones remains lukewarm, making it unlikely that generative AI features will drive iPhone sales in the near future.
The survey covered 7,500 smartphone users across the United States, United Kingdom, China, Germany, and Japan. While purchase intent in the U.S. remained steady at 24%, China saw a decline, dropping 200 basis points to 17%. Europe showed some resilience, with the U.K. and Germany seeing slight increases in interest.
Pricing remains the biggest concern for potential buyers. 51% of respondents cited cost as the primary barrier to upgrading, with privacy concerns ranking second at 37%. The average age of an iPhone in use has now reached 21.8 months, up from 21.3 months last year, indicating that users are holding onto their devices longer.
Apple’s push for AI-driven features has failed to generate excitement. Only 30% of respondents expressed interest in AI-enabled smartphones, while 27% were outright uninterested. The remaining consumers showed indifference, reinforcing the idea that AI integration is not a major selling point.
Despite weak demand, UBS has raised its global smartphone sales estimates for 2024 and 2025, projecting 1.21 billion units in 2024 and 1.24 billion in 2025. However, Apple’s position in the market remains uncertain, as competitors like Huawei continue to gain ground.
Sources:
https://www.nasdaq.com/articles/ubs-global-survey-finds-muted-demand-apples-iphone