A new survey from investment banking firm Morgan Stanley suggests that 92 percent of existing iPhone owners are “somewhat likely” or “extremely likely” to upgrade to a new iPhone within the next 12 months.
The survey was conducted in April 2017 after Samsung’s Galaxy S8 pre-orders went live.
Apple’s loyalty rate among its existing customers is significantly higher than any what any other Android OEM could manage. Samsung, the world’s biggest smartphone manufacturer, managed a score of 77 percent, with LG and Motorola following in at 59 percent and 56 percent, respectively.
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%).
A previous such survey conducted last year indicated a loyalty rate of 86 percent among iPhone owners. The highest ever iPhone retention rate recorded by Morgan Stanley’s survey was in 2015 with a loyalty rate of 93 percent. The survey was conducted in September 2015 when Apple had announced the iPhone 6s.
Morgan Stanley analysts also claim that they have not seen any delays in Apple’s supply chain yet for the upcoming launch of the iPhone 8. This is in contrast to what other reports and analysts have claimed so far regarding the iPhone 8’s production schedule. Nonetheless, despite the production of the iPhone 8 being on track, Morgan Stanley’s Huberty is “conservative in their initial expectations” for the iPhone 8 supply.[Via MacRumors]