Apple's iPhone scores 92% loyalty rate ahead of 'iPhone 8' launch, study finds
A new study published by investment bank Morgan Stanley shows 92 percent of iPhone users who are "somewhat or extremely likely" to upgrade within 12 months intend to buy Apple, a good indicator that this year's iPhone revamp has the makings of a so-called "super cycle."
'iPhone 8' concept rendering by Marek Weidlich.
As noted by analyst Katy Huberty in a research note circulated on Wednesday, and subsequently reported by StreetInsider, Morgan Stanley's AlphaWise survey found Apple far ahead of the pack in terms of customer loyalty.
The iPhone's reported 92 percent retention rate compares to Samsung's 77 percent, LG's 59 percent, Motorola's 56 percent and Nokia's 42 percent. For Apple, the number is up from 86 percent during the same time last year.
Acting on the new information, and previous predictions of an iPhone "super cycle," Huberty raised her price target on Apple stock from $161 to $177.
The AlphaWise survey data arrives ahead of Apple's expected launch of three new iPhone models this fall. Along with the usual "s" upgrades to the iPhone 7 series, the company is widely rumored to launch a high-end "iPhone 8." The flagship device is anticipated to drive high sales, addressing pent up demand for a redesigned iPhone. In many respects, the iPhone 7's design is a carry over from the iPhone 6.
After a brief return to growth in the holiday quarter, iPhone sales contracted on a year-over-year basis during the three-month period ending in March. Apple is looking to stoke demand with the the coming refresh cycle, though price might be an issue for some buyers.
Still, there are signs that consumers are willing to pay a premium for novel features. Despite a dip in unit sales, iPhone generated higher than expected profits over the most recent quarter, suggesting a mix in favor of the more expensive iPhone 7 Plus.
Apple CEO Tim Cook addressed the quarterly iPhone sales contraction in an investor conference call, saying, "Earlier and much more frequent reports about future iPhones" are having an impact on performance. The statement suggests consumers are holding out for "iPhone 8," rumors of which have been circulating for months.
Expected to boast a "glass-sandwich" design, the purported flagship iPhone is said to feature a 5.8-inch OLED screen with embedded Touch ID, virtual home button, wireless charging and a revolutionary 3D front-facing camera system, among other improvements. Augmented reality functionality might also be included, though information on potential capabilities is scarce.
'iPhone 8' concept rendering by Marek Weidlich.
As noted by analyst Katy Huberty in a research note circulated on Wednesday, and subsequently reported by StreetInsider, Morgan Stanley's AlphaWise survey found Apple far ahead of the pack in terms of customer loyalty.
The iPhone's reported 92 percent retention rate compares to Samsung's 77 percent, LG's 59 percent, Motorola's 56 percent and Nokia's 42 percent. For Apple, the number is up from 86 percent during the same time last year.
Acting on the new information, and previous predictions of an iPhone "super cycle," Huberty raised her price target on Apple stock from $161 to $177.
The AlphaWise survey data arrives ahead of Apple's expected launch of three new iPhone models this fall. Along with the usual "s" upgrades to the iPhone 7 series, the company is widely rumored to launch a high-end "iPhone 8." The flagship device is anticipated to drive high sales, addressing pent up demand for a redesigned iPhone. In many respects, the iPhone 7's design is a carry over from the iPhone 6.
After a brief return to growth in the holiday quarter, iPhone sales contracted on a year-over-year basis during the three-month period ending in March. Apple is looking to stoke demand with the the coming refresh cycle, though price might be an issue for some buyers.
Still, there are signs that consumers are willing to pay a premium for novel features. Despite a dip in unit sales, iPhone generated higher than expected profits over the most recent quarter, suggesting a mix in favor of the more expensive iPhone 7 Plus.
Apple CEO Tim Cook addressed the quarterly iPhone sales contraction in an investor conference call, saying, "Earlier and much more frequent reports about future iPhones" are having an impact on performance. The statement suggests consumers are holding out for "iPhone 8," rumors of which have been circulating for months.
Expected to boast a "glass-sandwich" design, the purported flagship iPhone is said to feature a 5.8-inch OLED screen with embedded Touch ID, virtual home button, wireless charging and a revolutionary 3D front-facing camera system, among other improvements. Augmented reality functionality might also be included, though information on potential capabilities is scarce.
Comments
A loyal customer base - Apples greatest asset.
Tired of finger-pointing. Have gone through hoops. Somehow, failure of the device has become my fault. Won’t mention carrier, billing history is spotless. What irks me, they have audacity to continue billing for services not rendered. Is that .. legal? They've actually altered a contract before without my consent.
Apple customer since 1984, this may be first ‘lemon’.
Didn't purchase AppleCare, device wasn't to be and hasn't been used in harsh environment. Guess I should have. Stuck paying off (and services for) a brick.
Don’t know how much any company values loyalty until you need help .
From Jan 2016 to Feb 2017. Is the phone still under warranty? (sounds like it possibly isn't) If it is under warranty, and it's not working, and you haven't damaged it yourself then Apple doesn't have a leg to stand on, and it's weird they don't know that.
In any case, you're not stuck. If you believe you're being short-changed then you should take them to court. That's a lot of money to be forking out for a phone that doesn't work.
A contract is exactly what you agree to. They can void the contract with radical changes, but that also gets you off the hook, if, say, you wanted to jump to a different carrier without an ETF.
If there are no clear signs of abuse and he is a long time Apple customer, then some Lee way should be applicable on warranty issues.
It shouldn't all be black and white and AppleCare shouldn't be needed, simply recommended. It wasn't his fault he chose not to buy it. I skipped it too.
I also don't understand how a device would become "DEAD" the moment an issue occurs. Okay, Apple may not be repairing it out of warranty. But there are so many other options for repair, isn't it?
2) Fuck your stupid entitlement.
We have no info on what's broken or where he took it. Apple Stores will do a lot for the consumer since their business is selling devices, which is best handled by loyalty, not nickel-and-diming for every repair. Apple certified repair shops make their money from repairs. I've had Apple replace or repair an amazing number of products without a warranty. I recently just setup an appt. for a family member in another state. At first Apple was going to charge them for a new display since the earpiece speaker wasn't working properly, but after they got it in back they discovered that it was just lint blocking the ear piece so they cleaned it out, cleaned the phone, and gave it back within 5 minutes free of charge. You're considerably less likely to get level of service at a 3rd-party shop.
Agreed, there is so much information not available. So my point about 3rd party repair was probably not warranted. Agreed with you on the other point about Apple store providing better service than 3rd party.
And a lot of time people think of Apple fans a if they buy everything from Apple thats new. I consider myself an Apple fan but this year i bought my second iPhone (my first phone was the 3GS, i am still using older iPads and don't own an Apple watch. But my next computer will be a Mac, my next tablet will be an iPad en my next Phone will be the iPhone 12.
Let me put it another way. Apple already does what I am talking about. Often it depends on who is dealing with your case and how you present it. The issue is for Apple to listen to your point of view and take a decision based on the contextual situation in borderline cases. It should be helping staff at all levels take reasoned decisions. Being a long time client should count towards that.
In the other direction, some staff will simply clean their hands of you by reading you the policy book. There is a fine line to tread but Apple should strive to improve client customer relations where flexibility can be applied.