Apple's most profitable iPhone models are quietly losing sales momentum, experts say.
Apple has long relied on iPhone storage upgrades to drive sales. The strategy is simple —
offer limited base storage options to entice users to buy more expensive, larger-capacity versions.
Illustration photo.
Illustration photo.
However, recent data suggests that fewer people are interested. Accordi
ng to a report by Consumer Intelligence Research Partners (CIRP), storage upg
rades have dropped across the board for the latest iPhone models, signaling a shift in consumer behavior.
Subtle but significant decline
In Q4 2024, only 44% of iPhone 16 Pro and iPhone 16 Pro Max buyers paid for the higher storage option, down from 48
% in the same quarter last year for iPhone 15 Pro models. This trend is ev
en more pronounced for the standard iPhone 16 and iPhone 16 Plus models — o
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nly 42% opted for the higher storage option, compared to 48% for iPhone 15 and iPhone 15 Plus in 2023.
While the discount isn't huge, considering Apple charges hundreds of doll
ars per upgrade, it's a significant financial change.
Why Are iPhone Buyers Stopping Upgrading to Higher Internal Storage?
The reason is that Apple's base storage has caught up with real-world needs. T
he iPhone 16 Pro Max starts at 256GB, double the 128GB of most other iPhones. Ev
en Apple's cheapest iPhone, the iP
hone SE, only has 64GB. That's a big change from the days when users had to delete apps and photos just to install a software update.
Users are increasingly choosing iPhones with larger internal memory.
Users are increasingly choosing iPhones with larger internal memory.
Additionally, cloud reliance has changed the game. With high-speed Wi-Fi, 5G, and seamless integration with iCloud, local storage is no longer as necessary as it once was.
Streaming services have largely replaced offline music and video libraries. Cloud-based photo management means users don’t need to store as many images on their devices. For many, the base storage is sufficient, making upgrading unnecessary.
iFans tend to upgrade memory for older iPhone models
Interestingly, while buyers of high-end and standard iPhones are skipping on storage upgrades, buyers of older iPhones are doing the opposite. More people who bought an iPhone 15, iPhone 14, or iPhone SE last quarter opted for the higher-storage version than those who bought a 2023 model.
There are a few reasons for this. Some of these users may be upgrading from much older iPhone models with less storage and don't want to repeat the frustration of running out of storage.
Others want to keep their iPhones longer, making a memory upgrade a smart, long-term investment. Since they’re already spending less on their smartphones, spending more on internal storage isn’t a priority.
