The iPhone 8 was recently hailed the best-selling smartphone in the world according to Counterpoint Research. Despite being based on a four-year-old design, the iPhone 8 now outsells every other smartphone, including the more advanced iPhone X.
That top spot of course did used to belong to the iPhone X, but that was short lived and the device now comes in third place. The general consensus? The industry is concluding that consumers are unimpressed with Apple’s lack of innovation and differentiation between devices. Apple fans have seen that the iPhone 8 will offer them almost everything the iPhone X can, and they’ll still have $300 left over.
Will the iPhone XR Keep Price-Sensitive Fans Happy?
Apple can guarantee that its diehard fans will upgrade to the latest and greatest device. But another type of fan does exist: the cost-conscious consumer still locked into the Apple brand. They want to upgrade to another Apple smartphone, but the price needs to be right – especially if the top device only offers incremental upgrades and improvements.
These consumers will no doubt be pleased to hear the rumors that Apple is expected to launch a more affordable device later this year. Anticipated to have a mix of features from the iPhone 8 and iPhone X, the iPhone XR is expected to come in at a lower price point – with renowned Apple analyst, Ming-Chi Kua claiming it’ll cost around $600-$700.
This would definitely create an attractive entry point for Apple to keep its price-sensitive fans happy. With some consumers yet to upgrade after seeing the high cost of the iPhone X, it’s entirely possible that the expected lower cost iPhone XR could provide the perfect option. There are plenty of consumers with an iPhone 6s, 7 and SE all still looking to upgrade. We know from our own Q2 2018 Mobile Trade-In Trends Report that the average age of an iPhone before it’s traded in is now 2.91 years, so these consumers are at the prime time for an upgrade
Trade-In Programs Help Retain Customers
While consumers might be holding on to their devices for longer, we know again from our own data that upgrades and trade-ins are happening more than ever before. Trade-in programs provide cost-conscious Apple fans with an affordable route to obtain a newer device. These programs are also helping to retain the customer and that’s what’s keeping carriers, retailers and OEMs competitive. The success rate of a customer upgrading to a better device is notably higher (over 28%) when offered a trade-in value for their older phone.
So, whether cost-aware consumers pocket the extra money from trading in their old device for the iPhone X, or opt for the cheaper iPhone XR, the smartphone market is expected to see a much needed boost.