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
52 months ago
When you have the best eco system, people stay.
Score: 35 Votes (Like | Disagree)
lkrupp Avatar
52 months ago
92% loyalty... except on MacRumors. Here it’s 92% hate.
Score: 23 Votes (Like | Disagree)
The Game 161 Avatar
52 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
52 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
52 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
52 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)

Top Stories

tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
tracking disabled ios 14 5

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5

Friday May 7, 2021 1:51 am PDT by
An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
netflix sign up

Apple Discussed 'Punitive Measures' Against Netflix for Dropping In-App Purchases

Wednesday May 5, 2021 11:03 am PDT by
As the Epic Games v. Apple trial progresses into its third day, Apple's internal documents and communications with various companies are continuing to surface, giving us some insight into the dealings that Apple has had around the App Store. Back in December 2018, Netflix stopped offering in-app subscription options for new or resubscribing members and instead began requiring them to sign up ...
iphone 12 preorder purple

Apple Begins Transition to Randomized Serial Numbers With Purple iPhone 12

Wednesday May 5, 2021 9:17 am PDT by
MacRumors previously reported about Apple's plan to switch to randomized serial numbers for future products starting in early 2021, and this transition has now started with the new purple iPhone 12 model in multiple countries. With assistance from Aaron Zollo, host of the YouTube channel ZolloTech, we can confirm that the purple iPhone 12 released last month has a new 10-character serial...
airtag 1

AirTag Anti-Stalking Measures 'Just Aren't Sufficient' Says Washington Post Report

Wednesday May 5, 2021 6:03 pm PDT by
The safeguards that Apple built into AirTags to prevent them from being used to track someone "just aren't sufficient," The Washington Post's Geoffrey Fowler said today in a report investigating how AirTags can be used for covert stalking. Fowler planted an AirTag on himself and teamed up with a colleague to be pretend stalked, and he came to the conclusion that the AirTags are a "new means...
iphone 13 pro max dummy notch

iPhone 13 Pro Max Dummy Model Depicts Smaller Notch

Tuesday May 4, 2021 1:08 pm PDT by
Apple's iPhone 13 models are expected to feature a slimmed down notch, marking the first major change to the TrueDepth camera system since it was introduced in the 2017 iPhone X. We're still months away from the launch of the iPhone 13, but Lewis Hilsenteger of Unbox Therapy managed to get an iPhone 13 Pro Max dummy model that represents what we can expect from the new 2021 device. Dummy...
iPad Pro July Shipping

12.9-Inch iPad Pro Now Delivers as Late as Mid-July

Wednesday May 5, 2021 7:10 am PDT by
While the new 12.9-inch iPad Pro is set to launch in the second half of May, orders placed today are estimated for delivery as late as mid-July on Apple's online store in the United States — some two months later. The new 11-inch iPad Pro is faring better so far, with some configurations available for delivery in the last week of May. The new 12.9-inch iPad Pro features a Liquid Retina XDR ...