When it comes to brand loyalty, Apple and Samsung are going in different directions
Apple and Samsung are going in opposite directions when it comes to customer loyalty.
Ever since the iPhone was released in 2007, the device has been owned by an extremely loyal bunch of consumers. Back in 2023, the percentage of iPhone users who bought another iPhone when they upgraded hit an extremely impressive 94%. That was the year that Apple released the iPhone 15 series. But it appears that this was a peak for iPhone loyalty according to data published by Consumer Intelligence Research Partners (CIRP).
After peaking at 94% in 2023, the percentage of iPhone owners whose next phone was also from Apple took a shocking nosedive down to 89% and that percentage remained the same this year. It's easy to blame the decline on a lack of innovation on Apple's part.
Interestingly, while Apple iPhone owners seem to waver in their loyalty, things are going the other way for Cupertino's top rival, Samsung. CIRP's data shows that the number of Galaxy phone owners who bought another Samsung Galaxy phone when the time came to upgrade has risen from 68% in 2021 to 76% this year. It hasn't been a straight rise in the up elevator for Samsung as the South Korean manufacturer experienced a minor hiccup in 2024 with a small 1% decline in brand loyalty.
Apple loses brand loyalty while Samsung gains a more loyal following. | Image credit-CIRP
Samsung still has competition in the U.S. market from Google, Motorola, and other low-priced Android brands. But unlike Apple's Apple Intelligence AI initiative, Galaxy AI has been more warmly received by consumers. Some of that could be due to what appeared to be a haphazard last minute rush by Apple to throw AI features at the iPhone. Meanwhile, Siri's AI makeover continues to be delayed. In general, Siri has been a serious source of dissatisfaction for iPhone users as certain advertised features for the virtual personal assistant have yet to materialize. This has forced Apple to pull those ads.
The figures cited by CIRP are based on a survey showing the percentage of previous smartphone owners who owned an iPhone or Samsung Galaxy handset and purchased a new phone during the quarter the survey took place. The survey covered purchasers of new mobile phones rather than limiting it to CIRP's quarterly survey of Apple customers.
While this might seem like a loyalty battle between Apple and Samsung, it goes deeper than that. Keep in mind that a phone owner leaving Samsung can be switching to a different Android phone manufacturer. On the other hand, an iPhone owner dropping iOS will most likely end up on Android.
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