The folks at the Consumer Research Group (CIRP) says that several important products — such as new Apple Watch and AirPods models — were lost in the Apple Intelligence hype at last week’s “It’s Glowtime” event.
The research group looked at all Apple customers that bought an iPhone in the 12 months ending June 2024. For these iPhone customers, about 60% also own an Apple Watch, and a little more than one-third own AirPods.
Interestingly, this ownership rate varies considerably by the segment of iPhone buyer. Buyers that upgrade their iPhone more frequently are much more likely to also own these accessories, according to CIRP.
“Both of these iPhone extensions are extraordinarily successful. While they rely on iPhones and effectively are only useful to iPhone owners, they are huge businesses on their own,” says the research group. “Both seamlessly connect and enhance the iPhone owner experience, but Apple Watch has a slight advantage. Apple Watch’s primary competition for smart wearables are fitness trackers, with no other smartwatch offering the same range of function. Airpods on the other hand compete with many Bluetooth earbud options, including some from known, trusted, premium brands.”
The bigger insight is the distinction between different cohorts of iPhone buyers. CIRP has previously noted that iPhone buyers hold their old phones longer before buying that new iPhone. The speedier upgraders are better consumers of the rest of Apple’s iPhone ecosystem, notes the research group.
Almost two-thirds of iPhone buyers who had their previous phone for less than two years have an Apple Watch, compared to fewer than half of iPhone buyers who had their old phone for three or more years. The AirPods data is similar. Slightly more than half of the faster iPhone upgraders have AirPods, compared to only 30% of those upgrading from a phone they owned for three or more years, according to CIRP.
