Loup Venture’s Gene Munster mentioned a survey of 502 people in the U.S. revealed there is increased interest to upgrade to the iPhone X, to be launched by Apple Inc. (NASDAQ: AAPL) later this year, along with interest in augmented reality.

Increased Interest

The analyst reported that of the iPhone owners surveyed, 23 percent said they intended to upgrade to the iPhone X, as compared to the 15 percent that said they intended to upgrade to the iPhone 7 prior to its launch.

“As we get closer to launch, the rumor mill can positively or negatively impact excitement about buying. If the rumors live up to the early hype, interest will likely increase; if they don’t, interest may decrease,” Munster stated.

The analyst believes the increased interest in the iPhone X potentially reflects the growing popularity of the iPhone Upgrade Program. Although still early, the interest to upgrade to the iPhone X appears significantly higher than it had been for the iPhone 7.

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AR Driving Demand

The survey also revealed 26 percent of those who intended to buy the iPhone X were interested in the AR feature, as compared to 16 percent of those who didn't plan to purchase the iPhone X.

In addition, the interest in AR was higher among millennials, with 34 percent of the 18-29 age group showing the highest interest.

“Among older age groups, interest in AR declines. This points to the willingness of millennials to be early adopters. We believe younger users are the key to widespread AR adoption over the next decade,” Munster went on to say.

In addition, the survey indicated interest in AR was higher among men, with 28 percent males expressing interest, as compared to 23 percent of the females surveyed.

“We’re looking forward to seeing how Apple markets the AR-related features in the iPhone. And we’ll be looking for signs of these new features in iOS 11 when it’s introduced at WWDC in early June. Those features, along with the company’s ability to market their utility to consumers, will drive demand for the new device and push the AR theme forward, potentially in a very big way,” Munster added.

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