Bank of America Predicts Strong iPhone Refresh Cycle Fueled by Generative AI Features

Bank of America anticipates a strong refresh cycle for iPhones in the coming years, driven by Generative AI features.

Their global smartphone survey across the US, UK, China, and India reveals an extended iPhone upgrade cycle, with 41% of respondents planning to upgrade every four years or more, up from 36% in 2022.

A notable portion of users still holds older iPhone models: 28% have iPhone 13, 14% have iPhone 12, and over 35% have iPhone 11 or older models.

BofA foresees a significant shift in the future, expecting a robust refresh cycle over the next two years as Generative AI features become prominent.

Analysts maintain a Buy rating, citing a multi-year iPhone cycle driven by GenAI, strong services growth, and margin expansion.