As iPhone fans soak up the latest information about the handset’s features and abilities, Apple CEO Steve Jobs and other leaders of the Cupertino, Calif. company likely are more mindful of something else: the high rate of iPhone owners who are upgrading to the latest model. While only 38 percent of purchasers of the original iPhone upgraded to the iPhone 3G in 2008, more than three out of four iPhone 4 purchases Thursday were from current iPhone owners.
“Apple is effectively building a recurring revenue stream from a growing base of iPhone users that upgrade to the newest version every year or two,” Piper Jaffray analyst Gene Munster told investors Friday. Oppenheimer analyst Yair Reiner found a similar response in his survey of first-day iPhone 4 buyers. He found 76 percent of purchases were upgrades which took place 14.7 months after buying the previous Apple handset. Buyers “were inspired by desire rather than need,” Yair noted Friday.