iPhone Scores 92% Loyalty Rate in Recent Survey Ahead of iPhone 8

92 percent of iPhone owners that are "somewhat likely" or "extremely likely" to upgrade their smartphone in the next 12 months plan to purchase another iPhone, according to investment banking firm Morgan Stanley.

iphone trio
Apple's loyalty rate, up from 86 percent a year ago, is based on an April 2017 survey of 1,000 smartphone owners aged 18 and above in the United States. It's the highest iPhone retention rate recorded by Morgan Stanley since an all-time high of 93 percent set in September 2015, when the iPhone 6s launched.

An excerpt from Morgan Stanley analyst Katy Huberty's research note distributed today:

It's our belief that a maturing installed base that is accustomed to iOS and increased press around potential new technologies in the upcoming iPhone drove the strong year-over-year increase. Importantly, the rise in Apple's loyalty rates comes after Samsung, Apple's biggest competitor in the United States, introduced the Galaxy S8, which was available for pre-order starting March 30th. Apple's loyalty rate of 92% dwarfs that of all other vendors, with Samsung garnering a 77% retention rate, followed by LG (59%), Motorola (56%), and Nokia (42%).

Despite reports suggesting "iPhone 8" mass production could be delayed by months, Huberty said Morgan Stanley's Greater China Technology Research colleagues have "not yet seen delays in the supply chain" and still expect new iPhone production to start on time for most components, including the OLED display.

"Nevertheless, we remain conservative in our initial expectations for iPhone supply," the research note cautioned.

Morgan Stanley raised its price target for Apple's stock to $177 today, up from $161, given growing confidence in its 2018 fiscal year "supercycle" estimates, along with a greater mix of recurring, high-margin services revenue, and a larger cash balance with potential for repatriation in the United States.

Related Forum: iPhone

Top Rated Comments

Michaelgtrusa Avatar
76 months ago
When you have the best eco system, people stay.
Score: 35 Votes (Like | Disagree)
lkrupp Avatar
76 months ago
92% loyalty... except on MacRumors. Here it’s 92% hate.
Score: 23 Votes (Like | Disagree)
The Game 161 Avatar
76 months ago
I wonder what loyalty-rate the Mac has since October...

All those people screaming "I'm movin' to Windows!"
bet they didn't.
Score: 14 Votes (Like | Disagree)
Soccertess Avatar
76 months ago
Tim likes to flaunt this loyalty, and has no problem using it to increases dongle sales because knows people will follow.

Except there is a tipping point. Microsoft experienced that. At some point people got so fed up, they left and haven't returned, until now. Tim is the best thing to happen for Microsoft and Android.
Score: 12 Votes (Like | Disagree)
djcerla Avatar
76 months ago
many iPhone owners have already switched to one of the better devices like Galaxy S8, Pixel, LG G6, etc
Hardly better. Much slower, for example, with worse battery life and ecosystem. Camera? Maybe better on some kind of photos, but leagues behind in video and zoom capabilities.

The iPhone 8 will make those devices look very dated.
Score: 10 Votes (Like | Disagree)
v0lume4 Avatar
76 months ago
Those numbers are incredible.

It also brings up a (in my opinion) disappointing reality -- remember cell phone shopping back in the day? Each new phone you purchased was totally new. That's what made new phones so exciting. You might go with LG for one phone cycle, then you might go with Samsung the next. And then Blackberry. It always kept things fun and refreshing. These days, most folks stay with one operating system and (in Apple's case) one vendor, year after year. Phone upgrades are simply slightly better iterations of the previous phone.

That said, phones are better than ever, and they can do more than ever. We are much better off than we used to be with the phone market of the 2000's. So take what I said with a grain of salt. But it's just a thought.
Score: 10 Votes (Like | Disagree)

Popular Stories

iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Leak Reveals Unified Volume Button and Mute Button

Monday March 20, 2023 8:33 am PDT by
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro. Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
iOS 16

iOS 16.4 for iPhone Nearing Launch With These 5 New Features

Monday March 20, 2023 11:50 am PDT by
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April. iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
original iphone auction

Factory-Sealed Original iPhone Sells for $55,000 at Auction

Friday March 17, 2023 1:08 pm PDT by
A first-generation iPhone still sealed inside its box sold for $54,904 at auction, which is more than $54,000 over the original $599 price tag of the device when it was released in 2007. The original iPhone was put up for sale by RR Auction on behalf of a former Apple employee who purchased it back when it first came out. Back in February, an original, sealed iPhone sold for over $63,000,...
voice isolation

iOS 16.4 Adds Voice Isolation for Cellular Phone Calls

Tuesday March 21, 2023 11:01 am PDT by
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today. Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa. Voice...
iPhone 12 Pro vs iPhone 15 Pro Feature

iPhone 12 Pro vs. 15 Pro: New Features to Expect if You've Waited to Upgrade

Friday March 17, 2023 10:29 am PDT by
While year-over-year iPhone upgrades are not always groundbreaking, new features can begin to stack up over multiple generations. For example, the iPhone 15 Pro will be a notable upgrade for those who still have a three-year-old iPhone 12 Pro. If you are still using an iPhone 12 Pro and are considering upgrading to the iPhone 15 Pro when it launches later this year, we have put together a...
top stories 18mar2023

Top Stories: iPhone 15 Pro Pricing, New iOS 16.4 Beta, Siri vs. ChatGPT, and More

Saturday March 18, 2023 6:00 am PDT by
Apple's high-end iPhone models have started at $999 in the U.S. since they first launched back in 2017 with the iPhone X, but could this finally be the year that starting price sees an increase? This week also saw some more rumors about Apple's upcoming headset and the company's explorations in the booming AI industry as well as the release of a new round of beta updates, so read on for all...
smart monitor m8 samsung

Deals: Samsung's iMac-Like Smart Monitor M8 Drops to Lowest Price of Year So Far With $250 Discount

Monday March 20, 2023 8:27 am PDT by
Samsung today kicked off a special "Discover Samsung" event, which will be a week-long savings event focusing on Samsung monitors, smartphones, TVs, appliances, and more. While some deals will stick around the entire week (through March 26), others will refresh every day. Note: MacRumors is an affiliate partner with Samsung. When you click a link and make a purchase, we may receive a small...