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

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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.


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.

Article Link: iPhone Scores 92% Loyalty Rate in Recent Survey Ahead of iPhone 8
 
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v0lume4

macrumors 68000
Jul 28, 2012
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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.
 

MH01

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Feb 11, 2008
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And all the users in between "somewhat" and "extremely" ?

I'm more of a "kinda" person.... sometimes "maybe" , though have also been a "definitely" in the past.
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I wonder what loyalty-rate the Mac has since October...

All those people screaming "I'm movin' to Windows!"
My money is that the 2015 MacBook Pro saw impressive revival :)
 

mi7chy

macrumors 604
Oct 24, 2014
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Biased source. Of course an investment firm like Morgan Stanley wants to put out news that benefit their AAPL portfolio.

In reality, many iPhone owners have already switched to one of the better devices like Galaxy S8, Pixel, LG G6, etc. or they're on the fence to see the new iPhone without committing.
 
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jasonklee

macrumors 6502a
Dec 7, 2007
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But...but...what about the bezels...the big, thick, ugly bezels...? And the...the icons! The static grid of icons! And the same boring design! It's not the iPhone 7, it's the iPhone 6sssssss! And...and...and...watch bands! Fire Tim Cook! Jony Ive is a hack! 5200-RPM hard drives! Ughhhhhhhhhh!
 

pika2000

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Jun 22, 2007
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Anybody who uses a smartphone fully as a smartphone will not be likely to switch platforms willy nilly, regardless of how that person feels about that platform.
Switching platforms is painful. Just take one app, whatsapp. Switching platforms mean losing all your chat history. On Apple, there are also iMessages and Photos where regular users will find it difficult to migrate to different platform.
 

Zirel

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Jul 24, 2015
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I wonder what loyalty-rate the Mac has since October...

All those people screaming "I'm movin' to Windows!"
I also want to know that, in units, because PC sales were down, and Mac sales were up.

Apple is losing the professionals. The MacBook Pro is a lie (actual The Verge title)
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That and you get locked into that eco system... their is no cross-buy system.
The door swings both ways.

Also with USB-C, Android has an advantage with Android, ChromeOS, macOS, Windows Phone and Windows devices sharing the same accessories.
 
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redscull

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Jul 1, 2010
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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
That's still true for everyone who isn't an Apple user.
 

Relentless Power

macrumors Nehalem
Jul 12, 2016
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I can't help but wonder where do the surveys circulate and I've never received one in 16ish years of using registered Apple products.
This was my thinking as well. How vague is this quote listed below from the article about how an iPhone owner is extremely likely to upgrade their smart in the next 12 months. It's completely wide open and overly generalized.

"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."
 

nikicampos

macrumors 6502a
Jul 23, 2011
816
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When you have the best eco system, people stay.
Exactly, for me, Apple is the best doing that, MacBook Pro, iPhone, Apple Watch, all those just go perfect together, it's all about complementing each other, no other company does this better than Apple.

Can't wait for the new iPhone 8, I just hope it doesn't go Samsung like with that weird long resolution, looks horrible, all the apps have black bars top and bottom.
 

BruceEBonus

macrumors 65816
Sep 23, 2007
1,344
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Derbyshire, England
And how DO you milk sheep, exactly?

Easy. We release an update of the last iPhone every year and give it a sequential number. Yeah?

Fine. Im in. But you promise that 'eco system' wont change either?

Ha ha. No sir. We won't do that. That's the main reason you keep coming back for more.

Is it? Thanks. Yes. Thank you, sir. Thank you.
 

Soccertess

macrumors 65816
Oct 19, 2005
1,248
1,738
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.
 
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