iPhone upgrades continue to soar while first-time buyers disappear

Jacob Siegal
The colorful iPhone 5c will reportedly be discontinued next year

Although iPhone sales are still trending upwards with every new release, market saturation may begin to have negative effects on Apple in the coming years. Fortune shared a report on Wednesday from Sanford Bernstein analyst Toni Sacconaghi that predicts Apple will lose 26% of first-time iPhone buyers by 2015 after a notable 8% drop this fiscal year. By next year, a majority of iPhone purchases will be upgrades for buyers that have purchased an iPhone before. According to Sacconaghi, unless Apple inks a deal with China Mobile or releases a legitimate budget iPhone, his forecast only leaves “a slim margin of error that Apple will attract sufficient first-time iPhone buyers going forward to meet consensus forecasts for FY14 and FY15.” The chart can be found below.

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This article was originally published on BGR.com

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