Questions abound over whether the iPhone 7 will be an appealing buy. But at least one study says many, many people will be upgrading to the next iPhone.
Half of all current iPhone owners will upgrade to the next iPhone, believed to be known as the iPhone 7, as soon as the device launches later this year, a new study from device warranty provider Insurance2Go found in a survey of more than 1,000 people. Nearly eight in ten current iPhone owners will upgrade either at launch or at some point thereafter, but will definitely choose the iPhone 7 when that time comes, the survey found.
However, Insurance2Go added that 19% of iPhone owners are planning to turn to the Samsung Galaxy S7 or another version of Samsung’s handset instead of the iPhone 7. Just 8% of existing iPhone owners will upgrade to a different device.
Rumors have been swirling for months about Apple’s (AAPL) plan for the iPhone 7. A mounting number of reports say the iPhone 7 will come with only minor upgrades, including a dual-lens camera, a slightly modified design, and internal component updates. Analysts and industry sources have said Apple plans to release a major iPhone update next year, featuring an all-glass enclosure, new screen technology, and more.
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Reports that Apple is only planning a minor upgrade have caused many market analysts to say this could be a rough year for Apple’s iPhone division. They argue that consumers won’t be enticed enough to buy a new iPhone this year and will instead wait until 2017 to buy their next Apple handset. Indeed, Cowen & Co. analyst Timothy Arcuri argues that next year will represent a “powder keg” and “super cycle” for Apple, as demand builds, the company launches a major upgrade, and iPhone sales explode.
While the Insurance2Go study doesn’t necessarily counter arguments that the iPhone 7 might be a sales disappointment, it does suggest that there is already pent-up demand among iPhone users for a new Apple handset. Perhaps more importantly to Apple, it also suggests that few of its existing iPhone owners are willing to switch to another device, regardless of what it offers this year.
“The market has grown incredibly competitive over the past couple of years, however it’s no real surprise to see people are still firmly in favor of the iPhone handsets,” Insurance2Go managing director Duncan Spencer said in a statement. “We believe that the iPhone still reigns supreme, as its innovations and sleek designs will keep people coming back to Apple products again and again.”
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Apple is expected to announce the iPhone 7 later this year and will likely launch the device in the fall around the same time its iOS 10 mobile operating system launches.
