Investing.com -- Apple Intelligence features are failing to accelerate iPhone upgrade activity, according to a UBS survey of more than 7,500 smartphone users across five countries, which found declining enthusiasm for AI as a purchasing trigger even as overall purchase intent held up in key Western markets.

Analyst David Vogt said in a note on Thursday that the proportion of respondents indicating they would upgrade sooner because of Apple Intelligence features declined to approximately 24%, down 500 basis points half-on-half, while those saying the features had no impact on their purchasing decision rose to approximately 31%, up 300 basis points half-on-half.

On broader purchase intent, UBS found 12-month global iPhone purchase intent in the U.S. rose approximately 300 basis points year-on-year to around 20%, with the U.K. up 600 basis points and Germany up 400 basis points. China was a notable weak spot, falling approximately 100 basis points year-on-year to around 15%.

UBS also found that the average age of an iPhone in the user base ticked down modestly to approximately 22.9 months from the prior survey, though Vogt noted it remains near survey highs, suggesting limited urgency to upgrade.

On Apple's anticipated foldable iPhone launch, net interest in an Apple foldable is said to have declined 100 basis points half-on-half, though the favorability spread of an Apple foldable over a generic foldable smartphone widened by approximately 600 basis points to around 48%.

UBS maintained its September 2026 quarter and full-year iPhone forecasts unchanged, with a $296 price target based on 30 times its calendar year 2027 EPS estimate of $9.86.