JPMorgan's consumer survey suggests stronger, more robust cycle for iPhone 16

Investing.com -- According to JPMorgan's recent consumer survey, the iPhone 16 cycle is shaping up to be "stronger and more robust" than previous years, despite a slight shift in consumer preferences for high-end models.

The survey, which gathered responses from potential upgraders and switchers, found that 68% of respondents are planning to purchase a new iPhone in 2024, up from 63% in both 2023 and 2022.

"Consumer interest [is] higher across US and China when compared to last year," said JPMorgan.

However, they note there is a softer demand for the high-end iPhone 16 Pro Max model compared to last year's iPhone 15 cycle.

The bank says only 26% of consumers expressed interest in the 16 Pro Max, a modest decline from the 15 series.

JPMorgan suggests this could be linked to the limited availability of Apple (NASDAQ:AAPL ) Intelligence features, which ranked only as the sixth top reason for upgrading, behind faster devices and 5G connectivity.

"Interestingly, Apple Intelligence features did not make it to the top 5 reasons to buy the new iPhone, but was the 6th top reason, and we believe that the staggered launch and limited availability of features for consumers to try, is driving this trend," adds the bank.

Switchers from Android to iPhone are said to be showing stronger interest in high-end models compared to last year.

Among those switching, 27% are considering the iPhone 16 Pro, an increase from the previous cycle, according to JPMorgan.

Additionally, the survey found that Apple Watch interest has grown, with 54% of respondents looking to buy one in 2024, compared to 48% last year. Despite muted traction compared to the iPhone, the Apple Watch Series 10 is said to have garnered more attention than its predecessor.

Source: Investing.com