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Apple's iPhone has 89% retention rate, next nearest hardware is HTC at 39%

post #1 of 117
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A whopping 89 percent of iPhone owners have indicated they will stick with Apple for their next handset, dwarfing all other hardware makers, according to a new survey.

The next nearest competitor to Apple in terms of hardware manufacturers is HTC, which earned a 39 percent retention rate among users surveyed by UBS Investment Research. The biggest loser in the survey was Research in Motion, whose retention rate has dropped from 62 percent to 33 percent in the last 18 months.

Rounding out the top five companies in terms of retention rates were two more Android vendors: Samsung and Motorola, earning 28 percent and 25 percent, respectively.

Android fared better when users were asked solely about software, as 55 percent said they would stick with Google's mobile platform. But an additional 31 percent of Android users also indicated they are likely to switch to an iPhone for their next handset, leaving Apple a sizable chunk of Android users.

UBS analysts remarked that Apple's retention rates have held up "incredibly well," even as the market share of the iPhone continues to grow.

In fact, when looking solely at consumers who plan to switch smartphone makers, Apple is a huge net beneficiary. More than 50 percent of those looking to switch plan to buy an iPhone, while just 10 percent of switchers plan to ditch the iPhone.

The survey shows Apple as only one of three net beneficiaries in the market, as the poll suggests Samsung and HTC will narrowly add more customers than the number they lose. Users did indicate that they intend to leave RIM and Nokia smartphones in droves.



The "stickiness" of Apple's iPhone is viewed by UBS as a "worrying" trend for Nokia, RIM and Motorola. They believe the success or failure of the recoveries of both Nokia and RIM will depend on the ability of Android to generate "sticky" customers.

UBS's survey polled 515 customers with a focus on international high-end consumers. The investment firm has reiterated its "buy" rating for AAPL stock, with a price target of $510.

"Demand for iPhone, iPad and MacBook Pro remains robust, with a leading ecosystem that creates sticky demand," they said. "We believe new opportunities such as TV sets are not factored in by the market and we view the valuation as attractive."
post #2 of 117
...and Android continues to crush Apples sad little iPhone.

Wait, what?
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post #3 of 117
UBS asked 515 of their primarily high-end international customers whether they would stick with their same phone vendor, or was it some other question? Hardly an average customer base. Particularly coming from a financial firm trying to talk their customers into following their "buy Apple" recommendation, not telling us anything really unless you depend only on high-end international customers for your business. \
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post #4 of 117
I can't wait to get rid of my HTC Incredible and go back to the iPhone. Android gives new meaning to the concept of "buggy"!
post #5 of 117
Quote:
Originally Posted by Gatorguy View Post

UBS asked 515 of their primarily high-end international customers whether they would stick with their same phone vendor, or was it some other question? Hardly an average customer base.

Is the customer base that important in this case? The survey didn't ask which phone people were going to buy in the first place. It asked how likely people are to stick with their choice, which depends on how satisfied they are with their current phone and whether they think they could be more satisfied with a different brand of phone. The bottom line is that Apple inspires customer loyalty like no other manufacturer.
post #6 of 117
its because IOS Eco system rules .. I have been tempted to switch but the though of not being in syn with my ipad , mac and finding apps in android is holding me or I would have jumped for unlimited 4G
post #7 of 117
The poll should be about platform and not hardware vendor. I don't think Android users are usually dedicated to the company that manufactured their Phone.
post #8 of 117
Crack has a high customer retention rate, it's not necessarily a good thing about the product.
post #9 of 117
I've speculated before that Android is a roman candle -- flies high and bright, but only briefly.

Just from an economic standpoint, Android is doomed. Apple makes far more money on the iPhone than all Android vendors combined plus Google. How can the Android platform continue to receive the necessary investment to move forward and compete with Apple under those circumstances?
post #10 of 117
Quote:
Originally Posted by Euphonious View Post

Is the customer base that important in this case? The survey didn't ask which phone people were going to buy in the first place. It asked how likely people are to stick with their choice, which depends on how satisfied they are with their current phone and whether they think they could be more satisfied with a different brand of phone. The bottom line is that Apple inspires customer loyalty like no other manufacturer.

. . . for those 515 high-end international UBS customers. That's why it doesn't say much about the average smartphone buyer.
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post #11 of 117
Quote:
Originally Posted by Gatorguy View Post

not telling us anything really unless you depend only on high-end international customers for your business.

Except that was always the exact target demographic for high-end smartphones like the iPhone, ie. The one that's actually relevant to any discussion of direct competition.

It also happens to be the (most) profitable sector.

This survey implies that high-end/business users believe the iPhone is or could be superior to the rest of the smartphones, despite RIMM's entrenchment in this area. Android has the most to lose (as it has the highest market share and most recent swelling in growth), and the idea that the "android market" is a bubble is clearly leant more credibility.

What this says about the remaining consumers remains to be seen, but the dearth of games available on competing platforms does not bode well.
post #12 of 117
Quote:
Originally Posted by Negafox View Post

The poll should be about platform and not hardware vendor. I don't think Android users are usually dedicated to the company that manufactured their Phone.

Agreed. I have an Android phone and will stick with for my next phone, but there are many manufacturers to choose from.
post #13 of 117
Quote:
Originally Posted by squirrelz View Post

Crack has a high customer retention rate, it's not necessarily a good thing about the product.

That makes the iPhone even better!

The iPhone is not an illegal, highly addictive drug, it's just a phone! And for a consumer product to have an 89% retention rate is damn near incredible!

Since you were comparing an iPhone to crack, allow me to compare Android phones to dog poo. That would also explain the extremely low and pathetic retention rate of Android phones.
post #14 of 117
Quote:
Originally Posted by Apple ][ View Post

Since you were comparing an iPhone to crack, allow me to compare Android phones to dog poo. That would also explain the extremely low and pathetic retention rate of Android phones.

Okay, now you're just being harsh. Dog poo gets retained...on the bottom of one's shoe.
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post #15 of 117
As Nolan Ryan once said in a Bayer commercial: "You got to stick with what works"
post #16 of 117
Quote:
Originally Posted by Negafox View Post

The poll should be about platform and not hardware vendor. I don't think Android users are usually dedicated to the company that manufactured their Phone.

Most average users probably either presume their current android experience is optimal, or find it very hard to differentiate between nexus/samsung/motorola/HTC etc. This is less about blind dedication to a brand than it is loyalty to a particular ecosystem or interface, something these hardware makers have failed in, or android has failed them in. If android in fact decreases the stickiness of a hardware manufacturer's phones, the impetus to continue using it to power their phones over a custom solution is what, exactly? Ease? Look at where his has gotten PC manufacturers (think IBM, HP).
post #17 of 117
Quote:
Originally Posted by JunkMailfever View Post

Agreed. I have an Android phone and will stick with for my next phone, but there are many manufacturers to choose from.

But that's part of the point. Android is a commodity. Manufacturers don't really differentiate themselves by using Android, which is one reason why Nokia (a company struggling with retention) chose Windows Phone. While it's a risky gamble on an unproven platform, it likely is the best shot at differentiation.

Once people figure out that Apple doesn't care about dominating market share when measured by volume, it becomes a lot easier to understand Apple's strategy. They'd rather have the most profitable 15-20% of a market than the other 80-85%. Sure, if they can have 68% of a profitable market to themselves like they have with iPad (or had with iPod in its heyday), they'll take it, but I don't think they ever expected to have a majority of the smartphone market. That market was relatively mature when they entered it, and was fairly low margin prior to their entry. For the most part it still is, except for them.
post #18 of 117
all roads lead to the iPhone.

a) you get an iPhone you stick with it.
b) you get an Android handset, your next phone is an iPhone.
c) you get an iPhone, you want to try out Android next, then you go back to iPhone.

People think that Android is a viable alternative until they try it. Some people can deal with it, usually tech heads who like to tinker, but they are a small population.
Then, of course there are always those who would never buy anything Apple (which is a shrinking population).
post #19 of 117
Of COURSE. People buy apps for an iphone, and invest their time into one platform, so of COURSE they are less likely to jump to another company SINCE APPLE IS THE ONLY COMPANY RUNNING IOS

If I buy Android apps, I'm not confined to a single device. I can branch out and try whatever Android device I want, and with as much competition as there is in the Android field, each company is always out-doing one another and the latest and greatest isn't always with the company that previously held the title.

This is good news for Apple in that it means they've successfully set up a platform they strictly control and that people feel invested in, but other than that, this isn't news of anyone being better lol
post #20 of 117
Quote:
Originally Posted by KPOM View Post

But that's part of the point. Android is a commodity. Manufacturers don't really differentiate themselves by using Android, which is one reason why Nokia (a company struggling with retention) chose Windows Phone. While it's a risky gamble on an unproven platform, it likely is the best shot at differentiation.

Once people figure out that Apple doesn't care about dominating market share when measured by volume, it becomes a lot easier to understand Apple's strategy. They'd rather have the most profitable 15-20% of a market than the other 80-85%. Sure, if they can have 68% of a profitable market to themselves like they have with iPad (or had with iPod in its heyday), they'll take it, but I don't think they ever expected to have a majority of the smartphone market. That market was relatively mature when they entered it, and was fairly low margin prior to their entry. For the most part it still is, except for them.

You're right. It's tough to differentiate if they're all using Android. However, I think this is still their only alternative to compete against Apple to get even the tiniest of marketshare. For Smartphone users, I think there's really only Apple, Android and RIM, but RIM is becoming more niche now. They can differentiate by choosing a different OS, but I wouldn't consider buying anything but Android or Apple. Others might feel the same way as me.
post #21 of 117
Quote:
Originally Posted by Apple ][ View Post

That makes the iPhone even better!

The iPhone is not an illegal, highly addictive drug, it's just a phone! And for a consumer product to have an 89% retention rate is damn near incredible!

Since you were comparing an iPhone to crack, allow me to compare Android phones to dog poo. That would also explain the extremely low and pathetic retention rate of Android phones.

No, it's damn near predictable. It's a good phone with a ton of apps, and since no other company offers it, it makes sense that people feel the need to stick with it. Afterall, what's the point of buying apps if you can't take them with you to the next device?

I guarantee you 100% if there were a refined and popular way to run iOS apps on Android, that retention rate would go down.
post #22 of 117
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 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.

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”?
post #23 of 117
Quote:
Originally Posted by Blastdoor View Post

I've speculated before that Android is a roman candle -- flies high and bright, but only briefly.

Just from an economic standpoint, Android is doomed. Apple makes far more money on the iPhone than all Android vendors combined plus Google. How can the Android platform continue to receive the necessary investment to move forward and compete with Apple under those circumstances?

By Google spending money it makes on the profitable part of its business on R&D for Android.
post #24 of 117
It's exactly statistics like this that leave me dumbfounded why Samsung is doing their best to piss off Apple and lose their business for components.

Looking at this graph, Samsung execs should really consider whether it's a good idea trading in stable revenue selling components to Apple, in favor of selling their own Android-based hardware. Like I already mentioned in the other post about Apple shopping elsewhere for RAM and flash, brand loyalty among Android vendors is almost non-existent. No matter how many Galaxy S and Galaxy Tabs Samsung sells today, if some other vendor launches a competing Android product tomorrow, that is comparable enough in features, but cheaper, it would leave Samsung empty-handed.

If this graph is for real, representative of the Android market, we can all see where this is going: a race to the bottom where you can only compete in high volumes and low margins, and low brand loyalty. The Android market is really starting to look like the netbook market of 5 years ago, and we all know how that worked out for the players involved.

Maybe it's not such a crazy idea after all that WP7 will pick up speed eventually, relegating Android to 3rd place.
post #25 of 117
What a silly metric.

Look at it this way:

Platform: Windows
Platform: Linux

To stay with Windows:
Microsoft

To stay with Linux:
Debian
Red Hat
Fedora
Suse
Ubuntu
et;al

Windows - Higher likely retention rate
Linux - More choice to switch whilst still using the same platform, lesser distro retention.

The very fact that a consumer has more manufacturer choice when choosing an Android handset will lead to lower retention percentage. I'll easily swap manufacturers if they have a higher end offering compared to the one I have now.
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post #26 of 117
Quote:
Originally Posted by squirrelz View Post

Crack has a high customer retention rate, it's not necessarily a good thing about the product.

Crack also makes you feel really good. If it wasn't illegal, bad for your health, and it didn't ruin your chances making a good living with a healthy social life, everybody would be using it.

Put it that way, comparing the iPhone to crack is almost a compliment, since the iPhone does not have any of the downsides that crack has, besides being relatively expensive.
post #27 of 117
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post #28 of 117
Quote:
Originally Posted by GalaxyTab View Post

The very fact that a consumer has more manufacturer choice when choosing an Android handset will lead to lower retention percentage. I'll easily swap manufacturers if they have a higher end offering compared to the one I have now.

You understand that brand loyalty is a pretty important part of succeeding in any market right?

If everyone does exactly like you do (which this graph suggests is true), this means it doesn't make a whole lot of sense for any of the Android manufacturers to spend a whole lot of money designing a killer phone that is actually the best they can do within their abilities, because next year when you are not able to out-do yourself, all your 'loyal customers' will run to the competitor, and you will never be able to recuperate the investment.

Result: every Android manufacturer tries to make phones that are generic, cheap to develop, and have a very high replacement rate. Better to sell 4 crap phones in 6 years, than to sell 2 expensive ones.

That's the other side of the coin, if you insist on having the 'freedom' to 'choose' between 10 manufacturers who all offer the exact same thing.
post #29 of 117
Quote:
Originally Posted by d-range View Post

If everyone does exactly like you do (which this graph suggests is true), this means it doesn't make a whole lot of sense for any of the Android manufacturers to spend a whole lot of money designing a killer phone that is actually the best they can do within their abilities, because next year when you are not able to out-do yourself, all your 'loyal customers' will run to the competitor, and you will never be able to recuperate the investment.

On the flipside, you have an easy opportunity to gain sales by putting out a market leading handset (which is probably why Samsung & HTC are doing so well compared to other Android OEMs).


Quote:
Originally Posted by d-range View Post

Result: every Android manufacturer tries to make phones that are generic, cheap to develop, and have a very high replacement rate. Better to sell 4 crap phones in 6 years, than to sell 2 expensive ones.

This isn't happening is it tho? Look at handsets like the Sensation and Galaxy S II. Android OEMs are pushing the envelope far faster than Apple are (and ever will with a yearly refresh).

When every single Android manufacturer stops making massive leaps ahead each few months coming out with the same spec phone using the same tech, what you say will be true.
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post #30 of 117
Quote:
Originally Posted by chronster View Post

Of COURSE. People buy apps for an iphone, and invest their time into one platform, so of COURSE they are less likely to jump to another company SINCE APPLE IS THE ONLY COMPANY RUNNING IOS

If I buy Android apps, I'm not confined to a single device. I can branch out and try whatever Android device I want, and with as much competition as there is in the Android field, each company is always out-doing one another and the latest and greatest isn't always with the company that previously held the title.

Googlerola will fix that.

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post #31 of 117
Quote:
Originally Posted by JunkMailfever View Post

Agreed. I have an Android phone and will stick with for my next phone, but there are many manufacturers to choose from.

The study shows retention rate for the Android platform is 55%, with 31% wanting to switch to an iPhone.

Its in the AI article itself.
post #32 of 117
Quote:
Originally Posted by GalaxyTab View Post

What a silly metric.

Look at it this way:

Platform: Windows
Platform: Linux

To stay with Windows:
Microsoft

To stay with Linux:
Debian
Red Hat
Fedora
Suse
Ubuntu
et;al

Windows - Higher likely retention rate
Linux - More choice to switch whilst still using the same platform, lesser distro retention.

The very fact that a consumer has more manufacturer choice when choosing an Android handset will lead to lower retention percentage. I'll easily swap manufacturers if they have a higher end offering compared to the one I have now.


You did not read the article details it covered this aspect to:

iPhone owners were asked if they planned to switch to a new OS platform
89% said NO
11% said YES

Android owners of all brands were asked if thy planned to switch to a new OS platform
55% said NO
45% said YES
31% of Android users planned to switch to iPhone
14% of Android users would then be switching to another platform besides Android or iPhone

Of all users of any platform who said they planned to switch to a new OS platform
50% said they planned to switch to iPhone
post #33 of 117
Quote:
Originally Posted by squirrelz View Post

Crack has a high customer retention rate, it's not necessarily a good thing about the product.

You signed up to post that.. are you fucking kidding me!

Maybe you're trying to tell us something...
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post #34 of 117
Quote:
Originally Posted by Negafox View Post

The poll should be about platform and not hardware vendor. I don't think Android users are usually dedicated to the company that manufactured their Phone.

And that's the price you pay for using someone else's OS on your iClone, right Samsung?

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post #35 of 117
Quote:
Originally Posted by Negafox View Post

The poll should be about platform and not hardware vendor. I don't think Android users are usually dedicated to the company that manufactured their Phone.

They did that too.

TFA: Android fared better when users were asked solely about software, as 55 percent said they would stick with Google's mobile platform. [PLATFORM] But an additional 31 percent of Android users also indicated they are likely to switch to an iPhone for their next handset, leaving Apple a sizable chunk Android users.

In other words, it's 89% vs. 55% based on platform, with almost 1 in 3 Android uses indicating that they want to switch to iPhone.

With only 10% leaving, that gives us a potential 20% of the current Android base going Apple...
post #36 of 117
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post #37 of 117
Quote:
Originally Posted by island hermit View Post

Maybe you're trying to tell us something...

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post #38 of 117
Congratulations Android for replacing Nokia as the crappiest,
most popular AND
Irrelevant
mobile platform in the world.


Nobody gave a sh%&t about Nokia. Nobody gives a sh4*t about Android.

Android's market share is USELESS.

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post #39 of 117
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post #40 of 117
Quote:
Originally Posted by GalaxyTab View Post

This isn't happening is it tho? Look at handsets like the Sensation and Galaxy S II. Android OEMs are pushing the envelope far faster than Apple are (and ever will with a yearly refresh).

Right now, there are only 2 manufacturers making any money off of Android, who happen to have the better Android phones right now, yet, it doesn't actually translate to brand loyalty. So yes, I would say it's already happening.

I don't know what you mean by 'pushing the envelope', but if you mean 'cramming more hardware into the same space', you are confirming my suspicion that things are going to end up a disaster for Android. There's only so much you can do with hardware to get people to buy your phone instead of your competitors: vary screen, battery life, 4G YES/NO, put a better camera in, put it in a nicer case. That's it. It all has been done already. Yet, the iPhone 4 is still the best selling phone in the US, with the 3GS a close second. It's also the best selling phone on any US carrier that sells it. In Europe, the iPhone still represents a bigger market share than all Android handsets combined.

Why do you think things are like this? Because 'pushing the envelope' by having faster hardware upgrade cycles makes people buy more of your phones?

Besides Android handsets having faster hardware upgrade cycles (and not even by having 'better hardware', because the iPhone 4's screen, battery life and case are still top of the line compared to the most expensive Android phones), how are Android phones 'pushing the envelope' in terms of usability, software quality, accessibility of features, etc? Why do you think Apple consistently reports the highest customer satisfaction figures, even despite not 'pushing the envelope' as much?

Quote:
When every single Android manufacturer stops making massive leaps ahead each few months coming out with the same spec phone using the same tech, what you say will be true.

Like I said, I think we are already there. Out of every 10 Android phones, 9 will have completely uninteresting, generic hardware and software properties. Some will look a little different than others, or vary minor details like screen size, but that's about it. The remaing Android phone that stands out and brings something to the table that makes it worth buying over all the others, such as an LTE radio, AMOLED screen or a really nice case. Unfortunately for the manufacturers, selling just this one phone and making good money off of it for one year is not enough. Next year, or the year after, even a $100 chinese no-name Android phone has LTE, so what killer feature will they come up with next?

I think you are putting far too much focus on hardware. It's not as important as you think. People don't care about what's inside their phone, they care about how well it works for them, how long the battery lasts, how many apps it runs, what it looks like, how snappy it is, stuff like that. Instead of combining essentially the same hardware into a million variations of the same thing, Apple is 'pushing the envelope' through iOS, the ecosystem around it, all the services they can integrate into it, etc. No Android manufacturer can do this, they all depend on Google for the software, hence they are not able to really make a 'massive leap forward'.
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