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iPhone showing 89 percent retention rate, survey indicates

updated 11:00 am EDT, Thu September 22, 2011

Apple, Samsung, HTC pulling in new buyers

Apple has the best customer retention rate of any smartphone manufacturer by far, a new UBS survey suggests. The company has 89 percent retention according to UBS data, the next closest competition coming from HTC, which has still only managed 39 percent. The biggest decline in the past 18 months is attributed to BlackBerry maker Research in Motion, which slipped from 62 to 33 percent.

The Android platform is noted to have "stickiness" of about 60 percent, much higher than any of its constituent manufacturers. Nevertheless, about 31 percent of current Android phone owners say they are likely to buy an iPhone as their next device. UBS remarks that in general, most people switching between cellphone makers are choosing Apple, although Samsung and HTC have also seen net gains. The biggest drains have stemmed from RIM and Nokia.

UBS lastly observes that app spending has "limited" importance when people choose a phone, as only 30 percent of the survey group said it would have an impact. Analysts have traditionally argued that much of Apple's retention and/or attraction is linked to the size of the App Store, and an unwillingness to abandon existing app purchases, but 69 percent of the survey reported spending less than $25 on apps.



By Electronista Staff
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Comments

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +12

    drrroid does... ???

    as one person who has experience with both mobile OS told me recently, 'android is a poor man's iphone'

  1. lamewing

    Dedicated MacNNer

    Joined: Aug 2004

    +4

    App spending

    I use both an iPhone and Samsung Focus (WP7). Both are fantastic OSes. Both are great phones, but the Apple iPhone has a higher build quality IMHO. The plastic Focus is a very sturdy phone and if it was constructed of metal I would put in on par with an iPhone, BUT as long as the manufacturers stick with plastic (HTC is reducing phones made of metal this year) they will never equal Apple's build quality.

    So what keeps me using the iPhone over WP7 (my WP7 is my spare GoPhone)? Apps and warranty.. Language appl. HP calculator emulator apps. Music apps. A few games. The specific apps I use are only available on iOS. The warranty issue is also important. If I have a problem, I drive to the Apple store and they fix the problem. The only iPhone problem I have had was the home button failed on my exchange student's iPhone 3GS. The store replaced the LCD and home button in 9 minutes. Also, I can extend the warranty an extra year ANYTIME during the first year of warranty. No other phone manufacturer will do this.

    Until these other manufacturer's step up their game the iPhone will always be my first choice of Phone....at least until Apple breaks down and provides a 3G iPod Touch. :)

  1. BigMac2

    Forum Regular

    Joined: Dec 2000

    +4

    Ecosystem

    Android manufacturer missing one key ingredient, built a ecosystem for their customer. In this android world no one appear to care about the end users and they acting like bureaucrats who like to split responsibility.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +3

    wide variation in user experience

    i know some who looooove their android phones, usually the more expensive ones

    i know others who have chronic issues with crashes, poor battery life and general usability.

    can't help but think that these experiences rub off on the OS itself in users' minds, even if they are primarily the fault of the handset makers.

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