Chinese Shoppers Slow Phone Upgrades as New Tech Fizzles, BI Finds

Buyers Are Stretching Upgrade Cycles

Chinese consumers are keeping their phones longer, with 69% in Bloomberg Intelligence's October survey saying they will not upgrade until at least 2027 - about double the share in May. More respondents also plan to keep devices for two to three years, a drag on the world's largest mobile market.

New Designs and AI Are Not Moving the Needle

Recent launches such as Apple Inc.'s foldable iPhone Duo have not sparked broad interest. Just 5.8% of people are either already using a foldable or have decided to buy one, signaling the format's narrow appeal. Packing high-end models with artificial intelligence isn't persuading buyers at the moment: just 8% named AI as a purchase motive; a year earlier the figure was 12%, and it placed last among 11 upgrade triggers.

Specs Matter, Costs Bite

Shoppers still care most about basics like battery life, camera performance, and memory. On that last point, 87% said at least 16GB is ideal for daily use. The rub is cost: memory prices have surged over the past year on demand from AI infrastructure projects, and IDC reports the September quarter marked the worst decline on record for global phone shipments.

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Brand Positioning, Discounts, and the Investor Angle

Apple's customer base tends to accept higher prices and is more open to paying extra for AI features, which leaves the company in a stronger spot than local competitors like Oppo and Vivo, both of which have been losing share to Huawei Technologies. Even with Singles Day promotions starting ahead of November 11, discounts are not expected to meaningfully lift demand, and BI analyst Steven Tseng said models including Huawei's Mate 90 Pro and Pro Max and Xiaomi Corp.'s 18 Pro Max currently carry no discounts. "While AI alone may not stimulate smartphone demand in China, it could strengthen Apple's appeal among Chinese smartphone buyers, as iPhone users indicate greater willingness to pay for AI features," he said. "Meanwhile, 27% of non-iPhone users would consider AI but refuse to pay extra, higher than 19% of iPhone users." For portfolios, that points to uneven pricing power and feature monetization across brands.

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