Apple has most loyal smartphone customers in US, study finds

AppleInsider Staff | Oct 29, 2021

Last updated 2 years ago

A vast majority of Apple's iPhone customers stick with the platform, with the company estimated to have curated the highest brand loyalty out of any smartphone manufacturer operating in the U.S., according to a new study released this week.

According to a report from research group CIRP, Apple maintained a loyalty rate of more than 90% for the past three years. The calculation was based on the percent of new iPhone customers who upgraded from a previous iPhone model.

By comparison, runner-up Samsung hovered at a loyalty rate below 70% over the same period. Motorola and LG experienced lower loyalty rates that have been on a downward trend since 2019, CIRP notes.

Apple's position as a front-runner is tied in large part to operating system loyalty. While manufacturers like Samsung, Motorola and LG jockey for position within the Android ranks, iPhone is the sole beneficiary of customers faithful to iOS.

"Within the Android operating system, Samsung has a similarly strong position as Apple does within the overall smartphone market. Motorola has maintained a meaningful share, but has much lower loyalty rates compared to Samsung," CIRP says.

Apple captured 43% of smartphone sales in the U.S. over the past three years. Samsung trailed with 31% of overall sales, but accounted for 54% of the Android market.

In reporting earnings for the fourth fiscal quarter of 2021 on Thursday, Apple said revenue from iPhone sales jumped 47% year-over-year to hit $38.9 billion. For the full year, iPhone revenue is up 39% from 2019. During an ensuing quarterly conference call, CEO Tim Cook said the September quarter saw an increasing number of upgraders and switchers who adopted handsets from the new iPhone 13 lineup.

it would be helpful to know what percentage of smartphone users feel loyal to ANY brand. For example, if this figure is higher than 70%, then that makes Samsung's loyalty figure below average.

I suppose you could call it loyalty but at the same time you don't really have a choice if all your apps are apple - you're locked into the iOS ecosystem. If you're on android, you have an actual choice of choosing which manufacturer you want to use without sacrificing all those apps you've already bought.

I suppose you could call it loyalty but at the same time you don't really have a choice if all your apps are apple - you're locked into the iOS ecosystem. If you're on android, you have an actual choice of choosing which manufacturer you want to use without sacrificing all those apps you've already bought.

Well, that's exactly right. The Android user could go from Samsung to Moto to Pixel and feel little to no pain. But the iPhone user who switches to Android will lose some apps. While both sides have their own "switch" apps, the Android-iOS switch will raise some logistical issues with things like calendars and music where the iTunes/Apple Music experience is very seamless while the Android music scene is very fragmented.

The switch is somewhat analogous to the PC world. It's no big deal to switch between a Dell and a Lenovo or whatever, but a Mac is a different story.

Aside from the aforementioned inconveniences, another factor is that among the very young crowd, I'd imagine that iPhone loyalty is close to 100%. The teens in my family tell me that it's considered uncool to use Android. It is preferable in their circles to be using an older or low-end iPhone rather than a top of the line Android device.

I suppose you could call it loyalty but at the same time you don't really have a choice if all your apps are apple - you're locked into the iOS ecosystem. If you're on android, you have an actual choice of choosing which manufacturer you want to use without sacrificing all those apps you've already bought.

Of course people have a choice, it’s just a choice that involves trade offs.

There are a lot of benefits to staying in the iOS ecosystem. I suspect Watch and AirPods are a big part of the reason apple loyalty rates have gone up while androids have slipped.

I suppose you could call it loyalty but at the same time you don't really have a choice if all your apps are apple - you're locked into the iOS ecosystem. If you're on android, you have an actual choice of choosing which manufacturer you want to use without sacrificing all those apps you've already bought.