Just how loyal are Apple Fans? The number is 92%
Morgan Stanley investment banking has recently done a survey to see how likely iPhone owners are to upgrade from their existing iPhone to the new iPhone 8. They found that the number of existing users which are “somewhat likely” or “extremely likely” to upgrade to the iPhone 8 when it comes out is 92%. We’ve all seen the lines of people waiting for Apple product releases and the iPhone 8 is expected to be no different. Even with all efforts from other major smartphone competitors and new Chinese competitors chomping at the bit to outperform the iPhone, most iPhone users swill stay with the iPhone 8.
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%).
What makes the brand so sought after?
Steve Jobs always said that the job of Apple and any device manufacture is just to make great products. He said that the “product genius… gets rotted out by people who are running these companies who have no conception of a good product vs a bad product, and they really have no feeling in their hearts usually about wanting to really help the customers.” You’ll see this quote in the video below. Many believe that Apple is sought after for poor reasons, like it being a popular fashion item of the week. Yet in the greater perspective those words fall short in describing the meteoric rise of Apple as a company that was started in a garage to becoming the worlds largest corporation with a higher value than many countries around the world. At TIME magazine an article states that the reason they do so well is because their products offer a simple and continuous customer experience. They say that the secret to their success is that they were able to innovate ways to keep technology simple and interactive and offered great customer service around their products through their retail Apple stores. You can find the nearest one at Woodfield Mall. If you examine their opinion you’ll find that it holds water.
If everything said above is true, why are Apple’s sales slowing down?
When you look at the reports, like the one issued at this article on the Verge, you’ll see that the driving force of the decline is iPhone sales. In fact, last year iPhone sales dropped 13% year over year down to 45.5 million units. This drop was not offset by poor performance on Apple’s part, but regardless iPhone sales have still been sluggish.