Amid economic uncertainty and rising tariffs, a recent Morgan Stanley survey reveals that U.S. consumers remain eager to upgrade their iPhones—especially for models featuring Apple Intelligence. According to the report, 51% of current iPhone users intend to buy a new device within the next year, setting a new record in the firm’s tracking history.
This surge in interest comes despite falling stock price targets for Apple, initially driven by concerns over tariff impacts and slowing upgrade rates. Analysts had slashed Apple’s price outlook from $275 to as low as $172 earlier this year. However, user demand tells a different story.
Apple Intelligence Drives Interest
Apple Intelligence, the company’s new AI suite launching with iOS 18, appears to be a major motivator. In the survey, 42% of current iPhone users rated Apple Intelligence as “very” or “extremely important” when considering their next phone. Among those planning to upgrade, that figure jumps to 54%.
Users aren’t just curious—they’re willing to pay for it. Morgan Stanley found that users would pay an average of $9.11 per month to access premium Apple Intelligence features. This is up from $8.17 just a few months ago, suggesting growing confidence in Apple’s AI direction.
Foldables and Slim Models Also in Demand
The desire for innovation doesn’t stop at software. Around 40% of U.S. users said they are “extremely interested” in foldable or ultra-thin iPhones. Apple is expected to release a slimmer iPhone model in September 2025 and a foldable device in 2026, potentially priced at $2,000 or more.
Analysts believe these redesigns could mirror the success of the iPhone X and iPhone 12, both of which sparked significant sales boosts following major form-factor changes.
Looking Ahead
While tariffs and global market concerns still loom, Apple’s customer base remains loyal and excited. As the company prepares to roll out its next-generation devices and features, it appears that innovation—not politics—will drive demand.
