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Loyalty to Apple driving iPhone market share gains vs. Android - survey

post #1 of 64
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A new poll of smartphone users reveals that loyalty to the iPhone is chipping away at Android's market share lead, and could lead to the iPhone overtaking Android in the U.S. in just a few years.

Yankee


The data comes from a survey of 16,000 consumers polled over the last year by Yankee Group, highlighted on Friday by AllThingsD. It concluded that customer loyalty will push iPhone ownership in the U.S. past Android devices by the year 2015.

The survey found that Apple and Google's Android are in a dead heat when it comes to buying intent: 42 percent of U.S. customers plan to buy an iPhone, while another 42 percent will opt for Android.

But Apple's greatest strength is in customer retention, as the survey found a whopping 91 percent of iPhone owners indicated they will buy another iPhone. Just 6 percent of iPhone owners plan to switch to an Android device.

In contrast, 76 percent of customers who own an Android device said they plan to buy another one. Among the 24 percent who indicated they plan to switch, 18 percent of those are eyeing an iPhone.

To explain how Apple is gaining on Android, the Yankee Group used an analogy comparing competing smartphone platforms to buckets of water. While the iPhone and Android "buckets" are collecting "water" ? or new users ? at about the same rate, Android's bucket is leakier than Apple's.

"The Android bucket leaks badly, losing about one in five of all the owners put into it," the report reads. "The Apple bucket leaks only about 7 percent of its contents, so it retains more of the customers that fall into it.

"The Apple bucket will fill up faster and higher than the Android one, regardless of the fact that the Apple bucket may have had fewer owners in it to begin with."

In the company's quarterly earnings conference call this week, Apple Chief Executive Tim Cook was asked about the fact that recent data shows the iPhone is not growing as the smartphone market as a whole worldwide. While Cook admitted he does want the iPhone to grow faster, he cautioned that growth alone is not the only measure of health, and singled out customer satisfaction as a key area of focus for Apple.

"The things that are very important to us in addition to market share and unit volumes are things like customer satisfaction, which were the highest by far winning J.D. Power nine times consecutively, and the customer loyalty and repurchase rates, which were the highest by far at 95% according to Kantar," Cook said.

The CEO then went on to highlight other strong aspects of the iPhone platform, including the amount of money paid to application developers, as well as usage statistics.

"Market shares are important and unit volumes are important, but these other things for us are extremely important, because we are all about customer experience and enriching lives," Cook said.
post #2 of 64
We need the equivelent to 'Once you go Mac you nerver go back' for iOS devices but for the life of me I am stumped to think of one ... 1biggrin.gif
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post #3 of 64

Only Loyalty?

What about

- Build Quality

- Superior engineering

- Dependability

- Apps quality

- Innovation

- No junk 

- No Android

- many more?

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post #4 of 64
Quote:
Originally Posted by Chandra69 View Post

Only Loyalty?

What about

- Build Quality

- Superior engineering

- Dependability

- Apps quality

- Innovation

- No junk 

- No Android

- many more?

Those are reasons for loyalty.  You can't have loyalty without the above reasons.

post #5 of 64
91% = fanboys /s

Did anyone think different?
post #6 of 64
LOL. This is clueless. One story about a 'research' provider says that the iPhone is losing share. The other, iPhone is gaining share!

Ok. Got it.
post #7 of 64

That's a good way to spin it.

Sure, why not?

Run with it.

post #8 of 64
hahaha. As soon as this article goes up, wallstreet cheat puts this article out.

Is Customer Loyalty Enough for Apple?
post #9 of 64
Loyalty wore off for me after a measly 4" stale phone. Still loyal to their computers though.
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post #10 of 64
Quote:
Originally Posted by anantksundaram View Post

LOL. This is clueless. One story about a 'research' provider says that the iPhone is losing share. The other, iPhone is gaining share!

Ok. Got it.

On top of that I can't stand these estimates that are stating what they expect the landscape will look like many years from now. Does anyone recall how Windows Mobile had been projected to make some amazing comeback when the iPhone was first released?

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #11 of 64
Quote:
Originally Posted by anantksundaram View Post

LOL. This is clueless. One story about a 'research' provider says that the iPhone is losing share. The other, iPhone is gaining share!

Ok. Got it.

 

Regardless of its source, or what others are saying, the phenomenon described here, in the US at least, is very real.

post #12 of 64
Quote:
Originally Posted by Chandra69 View Post

Only Loyalty?
What about
- Build Quality
- Superior engineering
- Dependability
- Apps quality
- Innovation
- No junk 
- No Android
- many more?

Those are the reasons for the loyalty.
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post #13 of 64
Quote:
Originally Posted by SolipsismX View Post

On top of that I can't stand these estimates that are stating what they expect the landscape will look like many years from now. Does anyone recall how Windows Mobile had been projected to make some amazing comeback when the iPhone was first released?

Difference being that Ms let WinMo stagnate with few updates for years.
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post #14 of 64
Quote:
Originally Posted by anantksundaram View Post

LOL. This is clueless. One story about a 'research' provider says that the iPhone is losing share. The other, iPhone is gaining share!

Ok. Got it.

 

Gaining market share in the US, losing market share worldwide.  If this report is accurate, then the natural pattern is feature phone -> android -> iPhone, which means that "losing market share" is a temporary condition that stops once people start to do the 2nd upgrade outside the US.

Until the last couple quarters Apple was losing market share to Android, and now is gaining due to the 2nd upgrade cycle where people dump android and get iPhones instead.

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post #15 of 64
Quote:
Originally Posted by xgman View Post

Loyalty wore off for me after a measly 4" stale phone. Still loyal to their computers though.

 

Cool story bro. I heard the awesome new Galaxy S4 isn't stale though, cause it has a big screen, or something:

 

 

 

Quote:
I don't like holding this phone, and I can't overstate how much that informs the experience of using it. It makes an awful first impression, slippery and slimy and simply unpleasant in your hand. My white review unit is completely smooth and glossy, with a subtle checkered pattern that looks textured but is neither grippy nor textured anywhere on its body. Even the silver band around the sides, which is obviously supposed to look like metal, is plastic. Everyone I showed the GS4 to frowned and wrinkled their nose as if it smelled bad, before rubbing their fingers on the back of the phone and then handing it back to me — that's the opposite of the standard reaction to HTC’s One, which everyone wants to ogle and hold.

 

Compared to:

 

 

Quote:
In all, while the iPhone 5 might look familiar, the sheer attention to fit and finish in its build lends it a sense of quality and craftsmanship that far too many devices lack. The new design — particularly the black version, which has a kind of sinister simplicity to it — is truly something to behold.
post #16 of 64
Quote:
Originally Posted by digitalclips View Post

We need the equivelent to 'Once you go Mac you nerver go back' for iOS devices but for the life of me I am stumped to think of one ... 1biggrin.gif
Didn't The Bionic man Steve Austin & Oscar Goldman work for the iOS?
post #17 of 64

 

Quote:
Quote:
Originally Posted by Chandra69 View Post

Only Loyalty?
What about
- Build Quality
- Superior engineering
- Dependability
- Apps quality
- Innovation
- No junk 
- No Android
- many more?

Those are the reasons for the loyalty.

No, its not.  Even if they fail much, you should stick with Apple. That is Loyalty.  

09 - the most interesting puzzle on AppStore

https://itunes.apple.com/us/app/09/id854675423?mt=8

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https://itunes.apple.com/us/app/09/id854675423?mt=8

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post #18 of 64
Quote:
Originally Posted by jungmark View Post

91% = fanboys /s

Did anyone think different?

 

yes.

 

All fanboi's are in the 91%

 

Not all of the 91% are fanboi's.    In fact, I'd be surprized if it were 0.91% of iphone users are fanboi's by the definition of an 'us/them'  attitude.

 

But 1% of iPhone users is a big/noisy number.  

post #19 of 64
I was an Android user for 3 years and only switched to the iPhone 5 last November.

I just went through my contact book on my iPhone to do my own survey. Out of 135 contacts, 120 are iPhone users and 14 are Android and 1 Blackberry.

Of the people I come into contact with, I have never heard of one complaint about their iPhone. Son are still using iPhone 3, 4, 4s and 5.

I am still amazed of how efficient and easy ALL MY contacts, mail, calendar, shared calendars, music, books, notes, reminders, and apps all just sync beautifully between all my devices.
post #20 of 64
"The Android bucket leaks badly, losing about one in five of all the owners put into it," the report reads.

 

It's the ecosystem.  Sleek hardware is great, a smooth OS experience is great, but they're still not enough.

The way attract long-term customers is to offer value with services like iCloud, high quality apps from

the App Store, and simple media purchase and download through iTunes (and Newsstand and iBooks).

 

Do all that and retaining your customers is easy.  Apple has obviously done all that.  Amazon has done

all that (except for the sleek hardware and smooth OS experience.)  Samsung is still working on their

Samsung Hub to replace the Google Play ecosystem.  Good luck with that.

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post #21 of 64
Quote:
Originally Posted by Slurpy View Post

Quote:
Originally Posted by xgman View Post

Loyalty wore off for me after a measly 4" stale phone. Still loyal to their computers though.

 

Cool story bro. I heard the awesome new Galaxy S4 isn't stale though, cause it has a big screen, or something:

 

 

 

Quote:
I don't like holding this phone, and I can't overstate how much that informs the experience of using it. It makes an awful first impression, slippery and slimy and simply unpleasant in your hand. My white review unit is completely smooth and glossy, with a subtle checkered pattern that looks textured but is neither grippy nor textured anywhere on its body. Even the silver band around the sides, which is obviously supposed to look like metal, is plastic. Everyone I showed the GS4 to frowned and wrinkled their nose as if it smelled bad, before rubbing their fingers on the back of the phone and then handing it back to me — that's the opposite of the standard reaction to HTC’s One, which everyone wants to ogle and hold.

 

Compared to:

 

 

Quote:
In all, while the iPhone 5 might look familiar, the sheer attention to fit and finish in its build lends it a sense of quality and craftsmanship that far too many devices lack. The new design — particularly the black version, which has a kind of sinister simplicity to it — is truly something to behold.

The slurp nails it.

post #22 of 64
It's a propaganda war.. Samsung is not afraid to get dirty ... I've seen such drastic numbers from IDC .. some of them conflict each other.. It's like they just pull it out of the air to have something to say and stay in the limelight..
post #23 of 64
Unfortunately, I think this momentum is going to be short lived. Apple is not keeping up with the market they essentially created. They no longer have the agility to respond quickly market changes. It's going to be summer 2014 before we see a larger screen size. Apple may be increasing market share (mass market...lower margin), but they are losing the cutting edge battle.
post #24 of 64
Quote:
Originally Posted by spudit View Post

Unfortunately, I think this momentum is going to be short lived. Apple is not keeping up with the market they essentially created. They no longer have the agility to respond quickly market changes. It's going to be summer 2014 before we see a larger screen size. Apple may be increasing market share (mass market...lower margin), but they are losing the cutting edge battle.

I'm still not sure why the group that does the _least_ with their phones thinks that screen-size is the cutting-edge value...

post #25 of 64
Quote:
Originally Posted by boredumb View Post

I'm still not sure why the group that does the _least_ with their phones thinks that screen-size is the cutting-edge value...

Says who?
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"Just because something is deemed the law doesn't make it just" - SolipsismX
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"I got the answer by talking in my brain and I agreed of the answer my brain got" a 7 yr old explaining his math HW
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post #26 of 64
Quote:
Originally Posted by dasanman69 View Post

Quote:
Originally Posted by boredumb View Post

I'm still not sure why the group that does the _least_ with their phones thinks that screen-size is the cutting-edge value...

Says who?

Says all kinds of data on web usage, ad impressions, app sales, media sales, e-commerce,.... I might be missing a few.
post #27 of 64
Quote:
Originally Posted by SockRolid View Post

 Amazon has done all that (except for the sleek hardware and smooth OS experience.)  Samsung is still working on their
Samsung Hub to replace the Google Play ecosystem.  Good luck with that.

Have you spent any real time with the new Kindle Fire? My sister bought 2 against my advice, and they're pretty damn nice. The hardware is more than decent and the software is not clunky at all.
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"Just because something is deemed the law doesn't make it just" - SolipsismX
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"I got the answer by talking in my brain and I agreed of the answer my brain got" a 7 yr old explaining his math HW
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #28 of 64
This means that Apple can expect loyal customers in the rest of the world when it makes phones for them. Go Apple.
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post #29 of 64
Quote:
Originally Posted by anantksundaram View Post

Says all kinds of data on web usage, ad impressions, app sales, media sales, e-commerce,.... I might be missing a few.

Last I checked internet usage between the iPhone 5 and SGS 3 was almost 50/50.

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"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #30 of 64
This data is a prediction of future purchases in the US only. The IDC data is the actual market share of phones for this quarter worldwide.

The top end smartphone market - like the PC market - is saturated. The medium and low end is where the growth is.
Edited by asdasd - 4/26/13 at 12:31pm
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post #31 of 64
Quote:
Originally Posted by asdasd View Post

This data is a prediction of future purchases in the US only. The IDC data is the actual market share of phones for this quarter.

The top end smartphone market - like the PC market - is saturated. The medium and low end is where the growth is.

While that may be true smartphones get replaced much more frequently than computers do.
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post #32 of 64
Quote:
Originally Posted by asdasd View Post

The IDC data is the actual market share of phones for this quarter worldwide.

No, it's not.

post #33 of 64
Quote:
Originally Posted by dasanman69 View Post

While that may be true smartphones get replaced much more frequently than computers do.

Yes and software lockin is non existent. My point is that Apple can take - and keep share - in the medium to lower medium end market, and hold it. But they need a cheaper phone.
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post #34 of 64
Quote:
Originally Posted by anantksundaram View Post

No, it's not.

Because you don't like it. Their methodology is accepted by Apple who reference them in conference calls - where favourable.
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post #35 of 64
Quote:
Originally Posted by dasanman69 View Post

Quote:
Originally Posted by anantksundaram View Post

Says all kinds of data on web usage, ad impressions, app sales, media sales, e-commerce,.... I might be missing a few.

Last I checked internet usage between the iPhone 5 and SGS 3 was almost 50/50.

Nonsense. You pulled out one narrow one where it comes close, just comparing two specific models (even there, the iPhone has a larger share).

 

Try just a few of the more general ones out there:
 

http://adage.com/article/digital/iphone-owners-consume-entertainment-android/240527/

 

http://cdn.mactrast.com/wp-content/uploads/2013/02/mobile_tablet_webshare_2013-02-01-at-2-56-09-am.jpg

 

http://www.mactrast.com/2013/02/report-androids-web-share-down-13-since-november-apples-share-is-up-1/

 

http://www.velti.com/press_release/dec-20-12.php

 

http://appleinsider.com/articles/13/04/18/apples-ios-beating-googles-android-in-mobile-ads-with-75-spend-share

 

http://www.guardian.co.uk/technology/appsblog/2012/dec/04/ios-android-revenues-downloads-country

 

I could go on and on....

post #36 of 64
Quote:
Originally Posted by asdasd View Post

Because you don't like it. Their methodology is accepted by Apple who reference them in conference calls - where favourable.

This was just discussed ad nauseam in the article that specifically referenced the IDC data. Go there and read it if you wish. 

post #37 of 64

The Yankee Group has the right idea - but is off by at least one year.  iOS may even catch Android this year but definitely by the end of 1st quarter 2014.  Averaging over a year - Android started later than iOS but grew rapidly past iOS and peaked in Jan-Feb 2012 with new subscriber growth and has been slowing ever since.  Apple's growth has been slow and steady.  Therefore, more Android users are coming to their end of contract each month compared to iOS users.  At the rate of the last 3 months, iOS would catch Android by the end of the calendar year.  For those who think this is just because of the iPhone 5, iPhone growth was faster 7-12 months after the 4s was released than the first 6 months after 4s was released.  T-mobile advertised iPhone was coming before Christmas to prevent their users from jumping ship.  Sprint LTE is slowly being built out.  These things point to accelerated gains by iOS relative to Android.

post #38 of 64
Digital Clips,
how about "Once You iOS, You Never Digress."


"We need the equivelent to 'Once you go Mac you nerver go back' for iOS devices but for the life of me I am stumped to think of one ... "
post #39 of 64
Quote:
Originally Posted by anantksundaram View Post

This was just discussed ad nauseam in the article that specifically referenced the IDC data. Go there and read it if you wish. 

I was in there. I in fact started that side discussion. Once again - IDC are considered to use correct methodology when estimating existing market share. I said Apple referenced them. You said that "meant nothing" there - as you do here. That's not an argument, there or here.
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post #40 of 64
In fact Peter Openheimer referenced IDC in this last conference call, saying Apple declined less than the PC market in unit sales so it increased share.

During a conference call, CFO Peter Oppenheimer told financials analysts that IDC had pegged the PC market decline 14 percent during the same period

From

http://www.ifoapplestore.com/2013/04/23/apple-defies-speculation-reports-quarterly-records/
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