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Thursday, August 17, 2023

Big iPhone 15 discounts expected from carriers to fight recession - 9to5Mac

If you’re planning on an upgrade next month, it may be worth holding out to see what deals can be found from mobile carriers: A Bloomberg report suggests that they will be offering “aggressive” iPhone 15 discounts.

The predicted move is expected as they seek to address disappointing smartphone demand in the US, amid a global smartphone recession expected to be the worst in a decade …

Global smartphone market ‘worst in a decade’

The global smartphone market once trended solidly upward, and it seemed almost a law of nature that each year’s sales would be higher than the last, as new buyers enter the market and people upgrade to the latest devices.

But the market peaked in 2017, according the Counterpoint Research data, and the trend has been downward since then (bar a glimmer of hope in 2021).

The pandemic and a tough economy added to the challenges faced by the industry, but it has also been battling the simple fact that smartphone tech hit a plateau, and the average consumer could no longer see a reason to upgrade every one to two years. The average person now upgrades their smartphone every three to four years.

Counterpoint is predicting that the global smartphone market will again decline this year, hitting the lowest number of shipments in a decade.

Even Apple isn’t overly optimistic. The company recently reported a year-on-year fall in iPhone sales, and indicated that it expects a similar situation this quarter, where the iPhone 15 struggles to match or exceed iPhone 14 sales.

Big iPhone 15 discounts expected

Apple itself, of course, will stick to its full-price strategy, relying on the allure of the brand and the shininess of new models to do the talking.

But Bloomberg reports that US carriers are expected to offer aggressive promotions on the iPhone 15.

“So far this year it’s been record low upgrades across all carriers,” said Jeff Fieldhack, Counterpoint research director for North America. “The iPhone 15 launch is a window for carriers to steal high-value customers. And with that big iPhone 12 installed base up for grabs promos are going to be aggressive, leaving Apple in a good spot.”

Getting a bargain may mean waiting a while, however. While some carriers may offer promos on day one, high initial demand may see the best deals reserved for a little further down the road.

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