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iPhone Users Demonstrate Strong Loyalty with Planned Retention Rate of 89%

Investment research firm UBS today issued a report highlighting retention rates for smartphone users, judging consumer loyalty based on whether they plan to make their next purchase from the same manufacturer as their current handset. According to the worldwide survey, 89% of iPhone users report that they will purchase another iPhone.


No other manufacturer topped a 40% retention rate in the survey, with HTC taking second place at 40%. Android as a whole has a planned retention rate of about 55% according to the survey, indicating that while many current users of Android handsets are planning to switch manufacturers, a fair number of them do intend to stay with Android. But 31% of surveyed Android users report intending to switch to the iPhone for their next device, with over 50% of the total "switchers" planning to move to Apple from another manufacturer as only about 10% of switchers are moving away from Apple.


Research in Motion has experienced a steep drop in retention rate, with only 33% of current BlackBerry users planning to purchase another BlackBerry, down from 62% a year and a half ago. In contrast, Apple's retention has fallen only 6 percentage points over that time in the face of strong competition from Android.

Related roundups: iPhone 5c, iPhone 5s, iPhone 6

Top Rated Comments

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38 months ago
Good quality products = loyalty
Rating: 22 Votes
38 months ago
That's one advantage to Android. You can change manufacturers for your phone and retain your investment in the eco-system without much issue. Moving from the hot Samsung, HTC, Motorola or Sony model to the new hot model of the week does not make you lose all your apps. Not so for iOS.

I'll be replacing my iPhone 3GS with another iPhone just for this reason. I'd probably have moved on to Android or to another vendor (SAMOLED+ screen is quite tempting, those things are awesome!) if it weren't for this issue.

So in a sense, this high loyalty is probably a result (for some, not everybody of course!) of vendor lock-in.
Rating: 14 Votes
38 months ago
Surprised that others suck so much.... but I am not surprised by results.

Apple has apple store with some brilliant customer service to back their devices up.

If I ever have problem with Samsung or HTC phone, then what do I have to do?

Contact carriers and they say go to manufacturers. You have to ship the phone out and call.... blah blah blah.

It's a nightmare.

Samsung promised Froyo 2.2 release on my friend's captivate for September 2010 and it was never released until mid 2011. Once you buy their products, they don't even bother to help you.

I will stick with apple iPhone and iPad as long as apple provides excellent customer service with great apps.

Nothing can come close to apple's customer service at this point. Thanks to mighty Jobs.
Rating: 9 Votes
38 months ago
And water is wet. Of course folks have a loyalty to iPhones...theyre the best phones in the world.
Rating: 6 Votes
38 months ago

That's one advantage to Android. You can change manufacturers for your phone and retain your investment in the eco-system without much issue.


I would say the other side of that is even more important—and a huge advantage for choosing iOS:

Changing from one Android phone to another, last I checked, was a major hassle, even with the same manufacturer, and even if none if your apps ended up incompatible (fragmentation).

Why? Because as near as I can tell, Google STILL has not fixed the glaring problem that when you switch from one Android device to another, you lose all your customizations, game progress, stored files/music/movies, screen organization, downloaded apps, etc. It’s like starting fresh! What a pain. That’s not the way for your market to be “sticky,” when an iPhone user can get a new iPhone and everything from wallpaper to folder organization is preserved—automatically with no special hoops to jump through. A clone of your old phone, with the new capabilities, thanks to the complete backup that iTunes provides.

So in reality, Android is an “ecosystem” where you LOSE much of your investment in it every time you need a new phone, even if the reason is that the old one didn’t work! Whereas iOS preserves everything for you painlessly.

My iPhone is the home of WAY too much of my life to put up with having to start over like that. And to make things worse: you face the same problem if your Android phone needs a warranty swap! Has this been fixed yet? Can you (finally) get your Android phone swapped and have 100% of your old phone cloned to the new one as it should be? Or is it still a halfway “some things will synch and then you’re on your own”?

Meanwhile, what benefit do most people really get from changing from one Android manufacturer to another? Some benefit, yes—but not as much benefit (for nearly all users, if they realize “open” is pure marketing) as just switching to iPhone and iOS's far-more-complete ecosystem. With a retina display, unmatched integrated music store, no malware, and no worries about the wrong app killing your battery life so you can’t make a call when you need to. (Seriously, my Android friends get less than half their calls and emails on a timely basis, and they lug a charger everywhere—how do they stand it?)
Rating: 6 Votes
38 months ago

Loyalty has nothing to do with it? Being blindly led into Apple's closed eco system has everything to do with it.


I disagree. If someone were to offer me an equivalent or near equivalent Android phone in exchange for my iPhone 4, AND replace my apps with near equivalent apps, I would not switch. The reason is because I'm happy with my iPhone 4 and Apple services.

I believe that if others are happy with their product they wouldn't switch either. And all polls and surveys indicate that most people are generally happy or very happy with their iPhones and Apple services.

In otherwords, I believe that earned loyalty has alot to do with it.
.
Rating: 6 Votes
38 months ago
Of course I'm loyal. I've invested hundreds in Apps. Switching would cost more than just the cost of the phone.

This will be the next round of anti-trust. App-portability...
Rating: 6 Votes
38 months ago

Ok, no kidding.

But if it happens 15 years down the road, will you still claim you were right?


Why should he be any less entitled than you are?

Not that it matters - your memory of anything earlier than 2007 is non-existent. So I'm sure by 2015 you won't remember him or his post either
Rating: 6 Votes
38 months ago

That's one advantage to Android. You can change manufacturers for your phone and retain your investment in the eco-system without much issue. Moving from the hot Samsung, HTC, Motorola or Sony model to the new hot model of the week does not make you lose all your apps. Not so for iOS.

I'll be replacing my iPhone 3GS with another iPhone just for this reason. I'd probably have moved on to Android or to another vendor (SAMOLED+ screen is quite tempting, those things are awesome!) if it weren't for this issue.

So in a sense, this high loyalty is probably a result (for some, not everybody of course!) of vendor lock-in.


Yes that must explain it, it couldnt be because its a good phone or anything
Rating: 6 Votes
38 months ago
I am not surprised at this at all. I went from a 3G to a 3GS to a 4 and will more than likely move to a 4S/5. iPhones just keep getting better and suit my needs perfectly.
Rating: 5 Votes

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