Wall Street thought AI would spark a massive iPhone upgrade cycle. Turns out, fear of Trump's tariffs did the trick.

A woman points her iPhone toward Donald Trump at a campaign rally in California. Trump's tariffs pushed people to upgrade their iPhones, it appears.

REUTERS/Lucy Nicholson

• Tariff fears spurred a surge in iPhone purchases in early 2025.
• Long-term iPhone users upgraded due to potential price hikes, not new AI innovations.
• This shows, again, how the iPhone is becoming a utility for most consumers.

In a surprising twist, it wasn't flashy AI features that finally nudged longtime iPhone users to upgrade ...