Apple's Surging iPhone Sales Aren't Really About AI...and That's a Good Thing

Core Viewpoint - Apple has seen a significant year-over-year revenue growth of 23% in its iPhone sales, leading the market to believe that the company has successfully entered the AI space, although this perception may not reflect the underlying reality [1][4]. Group 1: iPhone Sales Performance - The reported 23% revenue growth for iPhones does not equate to a 23% increase in unit sales; instead, it is primarily driven by higher average selling prices [4]. - Unit sales of iPhones grew by less than 5%, totaling 81.3 million devices sold during the three-month period ending in December [4]. - This sales figure marks the highest number of iPhones sold since the pandemic, indicating a recovery in demand following supply chain disruptions [5]. Group 2: Upgrade Opportunities - It has been over four years since a measurable spike in iPhone sales, suggesting that many devices currently in use are aging [7]. - Estimates indicate that the average age of an iPhone in the U.S. is around three years, while globally it may exceed six years [8]. - Approximately 315 million iPhone users out of 1.5 billion worldwide have not upgraded their devices in over four years, highlighting a significant upgrade opportunity for the company [8].