Apple Reaps Benefits of Smartphone Upgrade Trend
A new study found that Apple (NASDAQ:AAPL) is a major beneficiary of American consumers’ tendency to regularly upgrade their smartphones, reports MarketWatch. According to a SellCell.com study cited by MarketWatch, American consumers spend approximately $5.4 billion a year on iPhone upgrades out of a total of $11 billion spent annually on smartphone upgrades. Apple held a 40.6 percent share of the U.S. smartphone market during the three-month period ending in October 2013, according to the latest data from comScore.
Not surprisingly, Apple’s ability to charge premium prices for its devices has allowed the California-based company to make more money from upgrades than other smartphone companies. According to SellCell.com, the average iPhone upgrade costs $151, which is $21 more than the average price to upgrade a smartphone.
“We’re a nation of mobile-phone lovers — obsessed with getting a shiny new device,” SellCell.com spokesperson Craig Timmins told MarketWatch. SellCell.com is a site that aggregates smartphone trade-in deals from over 20 other companies. Various models of Apple’s iPhone currently hold the top three spots on the trade-in site’s list of most popular traded phones.