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The iPhone's 89% retention rate crushes rivals

Posted: , by Victor H.

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The iPhone's 89% retention rate crushes rivals
The iPhone has the highest retention rate in the industry blowing its rivals away with 89% of current iPhone owners saying they will stick or move to Apple in mobile, a recent survey conducted by UBS concludes. There are only two other companies that users want to switch to or remain loyal to - HTC and Samsung, but there the margins are nowhere near that of Apple. HTC had 39%, while Samsung held 28% rate.

Luckily, Android did much better than the sole phone makers as 55% of users said they’d continue using Google’s platform. At the same time, though, 31% of users currently on Android, said they were planning to switch to an iPhone. 

"Demand for iPhone, iPad and MacBook Pro remains robust, with a leading ecosystem that creates sticky demand," UBS said.

The iPhone's 89  retention rate crushes rivals
The iPhone's 89  retention rate crushes rivals

At the same time, though, Apple’s huge retention rate means that some phone makers have become really unattractive. The biggest losers in the survey are Nokia and RIM. The Canadians retention rate have nosedived to 33% from 62% 18 months ago, while the Finns have the lowest result with retention percentage standing at the meager 24%.

In general, retention rates appear to be falling for most of the OEMs. Relatively, Apple’s retention rates have held up incredibly well even as its market share has risen. Interestingly, when we look at all consumers who are considering changing handset OEM provider, Apple remains a significant net beneficiary. Alongside Apple, only Samsung and HTC also appear as net beneficiaries (more users won than users lost). Interestingly, of our respondents who are current Apple subscribers, only 6% indicated that they intended to move to a different OEM, with 4% saying they were undecided. This suggests that the retention rate for Apple could end up being as high as 93%. [UBS Research]

source: UBS via Apple Insider

56 Comments
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posted on 23 Sep 2011, 08:19 1

1. Alantef (Posts: 288; Member since: 14 Sep 2011)


douche

posted on 23 Sep 2011, 08:46 6

6. bobfreking55 (Posts: 866; Member since: 15 Jul 2011)


Apple is their religion. That's why.

posted on 23 Sep 2011, 11:46 3

27. Alantef (Posts: 288; Member since: 14 Sep 2011)


i see that....

posted on 23 Sep 2011, 12:20 3

32. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


That is correct

posted on 25 Sep 2011, 03:27 1

58. NeXoS (Posts: 288; Member since: 03 May 2011)


Umm, ANY survey that was done by an investment bank should be taken with a grain of salt. Follow the money, I'll bet they have tons of Apple stock and survey only 10-20 people.

posted on 23 Sep 2011, 08:26 5

2. biophone (Posts: 1976; Member since: 15 Jun 2011)


Small sample size but seems
pretty accurate.

posted on 23 Sep 2011, 08:31 14

3. davecann2 (Posts: 460; Member since: 15 Mar 2011)


From my experience with iPhones, iPads, and MacBooks it’s all about the quality, functionality, and support….

Quality – Extremely good cosmetic appeal that includes premium materials. Under the hood Apple always manages to stay current and push a little with every new model. Keep in mind that the iPhone 4 has been available for over a year and it is not dated in terms of hardware.

Functionality – Apple has a knack for making a user friendly environment in both iOS and Lion. The iOS is so easy to navigate and Lion simply blows Windows out of the water.

Support – This is by far one of Apples strong qualities. The Few times I contact Apple for support I always get right through to an operator who is located in the US (I hate outsourcing) and speaks clear English. They are extremely knowledgeable of the products and very polite! Top notch all the way!

posted on 23 Sep 2011, 09:19 6

10. John (unregistered)


True :)

posted on 23 Sep 2011, 09:19 1

11. dacastrator (Posts: 232; Member since: 22 Sep 2011)


As far as i know, American operators are the rudest of all, and most of them will lie to you or doesnt know anything about what they are talking about. If Im not mistaken most call centers are being outsourced in the Philippines now. They are very polite. Probably some of them needs to work on their english for a little bit but they wont be hired if they cant speak it clear.

posted on 23 Sep 2011, 10:09 4

17. davecann2 (Posts: 460; Member since: 15 Mar 2011)


Is this based on your experiance with Apples support center?

Yes, support from the philippines is awesome too. I called support for my Netgear router and they were knowledgable and polite. The English can use some work but i think it was mostly due to the accent which is understandable.

posted on 23 Sep 2011, 12:24

33. dacastrator (Posts: 232; Member since: 22 Sep 2011)


Yeah, but also in general. Apple also outsourced some of their call center in the Philippines.

But in general, Most of the American companies outsourced their call centers in the Philippines. Why? 3 Things.

1. It's cost effective.
- 1 person's salary in the US is already 4 persons' salary abroad.

2. Outsourced Representatives are very patient. And cannot be pissed whatever you do.

3. They are more knowledgeble.

posted on 23 Sep 2011, 09:45 6

13. PhoneLuver (Posts: 481; Member since: 05 Jul 2010)


I love my iPhone! So, far it's been the best device I've ever owned. The software is stable and doesn't crash. The device feels like a top quality device made with real materials.

I am getting bored with the interface though and if the next iPhone is just a slight upgrade I'll probably move on to something else. Probably WP7.

The problem I have with Android, not with the OS mind you, is that you can never really have "the" best Android device. No matter what you get, there's always something better available and the old handsets lose their value almost instantly after you bought them. Another thing is that almost every Android handset is made from cheap plastic and simply doesn't have a "quality" feel to it..

posted on 23 Sep 2011, 09:56 4

15. dacastrator (Posts: 232; Member since: 22 Sep 2011)


Desire HD has the best hardware among android phones. Made with auminum. Has minimal plastics. Unlike the Galaxy S II which has cheap plastics all over it.

posted on 23 Sep 2011, 09:58 4

16. roldefol (Posts: 4327; Member since: 28 Jan 2011)


I'm a fan of HTC's Android phones. Even the plastic ones are made from high-quality plastic and feel very comfortable to me.

posted on 23 Sep 2011, 14:53

40. ibap (Posts: 765; Member since: 09 Sep 2009)


My last HTC phone was a Touch Pro 2 - built like a tank and hardware-wise is still in great shape, though sitting on my shelf. There were/are even attempts to port Android to it (it was Windows Phone 6) but a port where the sound isn't working is no good to me. I replaced it with the nearest thing I could find at the time (Epic 4G) which also had a full keyboard in it and a faster processor. So far, this is also a good phone.

Weight in a phone is good in your hand, but lousy in a pocket. Since mine is usually in my purse and not in my pocket, it is only a sometime issue. But when I put these phones in a pants pocket, I'd better be wearing a belt.

posted on 23 Sep 2011, 17:56

46. AppleFanboy (Posts: 142; Member since: 07 Jun 2011)


coming from working for AppleCare, I know thats because ALL Apple call centers are located in that country, which is better than any other company, this means if you call Apple while youre in China, you'll get someone located IN China, same in every other country lol

posted on 23 Sep 2011, 08:41 8

4. ROBY (unregistered)


I M ONE OF THE 11% LEFT APPLE FOREVER

posted on 23 Sep 2011, 08:44 8

5. kreneo (Posts: 13; Member since: 29 Aug 2011)


That just shows how iphone is exceptional. Unlike android......... 31% want to move over to IOS!

posted on 23 Sep 2011, 10:43 10

22. remixfa (Posts: 14255; Member since: 19 Dec 2008)


no, it has nothing to do with OS, and everything to do with BRAND. People that leave HTC arent always going to apple or MS. Most of them are just going to another Android manufacturer.


Apple's brand loyalty index is high for 2 reasons
1) perceived quality by the user.. which is obviously important
2) because they have ZERO competition with other iOS devices. You want iOS, you get apple.. period.

Apple's 89% is not only their brand loyalty rate, but their OS loyalty rate since they are the only makers of iOS. That means 11% of current iOS users plan to jump ship.


when you break it down by manufacturer, android will always be lower because you have half a dozen makers all using the same OS. While many people jump from android to android, they dont always stay on the same manufacturer.. I know ive jumped brands many times within android just trying out all there was.

Thats all this is saying, it has nothing to do with OS loyalty (except for apple since they are one in the same), and everything to do with Brand loyalty so dont make it an OS flame war.

posted on 23 Sep 2011, 11:58 2

29. remixfa (Posts: 14255; Member since: 19 Dec 2008)


thumb me down? prove me wrong. chicken! :)

posted on 23 Sep 2011, 16:31 3

42. stealthd (unregistered)


55% Android retention rate compared to 89% iOS retention rate. 11% iOS jumping ship compared to 45% Android jumping ship. 31% of Android owners planning on getting an iPhone. There, you're proven wrong.

posted on 23 Sep 2011, 17:11 1

43. remixfa (Posts: 14255; Member since: 19 Dec 2008)


quote the source, because its not this article. :)

and i never mentioned android retention rate, so what exactly are you arguing against?

This is an article about OEM (manufacturers), not about OS, that was my point.

posted on 24 Sep 2011, 15:55 1

55. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


Sorry you were proven wrong

posted on 24 Sep 2011, 22:26

57. remixfa (Posts: 14255; Member since: 19 Dec 2008)


aww look, taco chiming in to try to prove someone wrong.. yet being wrong himself.. just like old times.

lolol

posted on 23 Sep 2011, 17:12 1

44. remixfa (Posts: 14255; Member since: 19 Dec 2008)


and also, even if your numbers are accurate, which they arent, that doesnt mean everyone leaving android is getting an iphone. there is also WP7, and dont forget Bada or peter will beat you.

posted on 23 Sep 2011, 18:00 1

47. AppleFanboy (Posts: 142; Member since: 07 Jun 2011)


Thing is these f@gdroids wont see it that way, they wont see that when they talk about phone sales, they add all Android devices together, when they talk about the amount of people leaving them, they wanna set them up individually, not as a whole, sounds a little bit of a biased survey you f@gdroids wanna do...

posted on 24 Sep 2011, 00:31 2

52. remixfa (Posts: 14255; Member since: 19 Dec 2008)


lol.. proving your an iDiot iSheep in 3... 2.... 1... oh wait.. u already proved that with your comment...lol

posted on 23 Sep 2011, 08:51 9

7. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


31% of android users want to switch to iOS. If iPhone launches on all carriers there can be a mass exodus from android to Apple. I'm not surprised. People get tires of constant force closes, power cycles and terrible battery life. Plus android doesn't support their products like Apple.

This flies in the face of droidbots claiming how superior android is. Let's sit back and watch all the excuses.

"this survey is flawed"

"its Apple marketing"

"android has more market share"

"iphonearena is soo biased!"

posted on 23 Sep 2011, 10:12 4

18. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


You read the part in the source where it said the sample size was about five hundred people, right? Furthermore, there's no note on how many people in the overall sample size actually own each kind of phone.

Anyway, I'm not going to get my panties in a twist over a survey by a stock analysis company that's trying to drive Apple stock higher.

posted on 23 Sep 2011, 10:16 3

20. hepresearch (unregistered)


Hahaha... you said "get my panties in a twist"... lol!

+1

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