89% retention rate for Apple’s iPhone, HTC next nearest with only 39%

September 23, 2011

Blog, iPhone, iPad and iPod touch, News

iPhone 4According to a new survey, 89 percent of iPhone owners said they will be sticking with Apple when they purchase their next handset, overwhelmingly beating out other hardware manufacturers.

Speaking in terms of hardware makers, HTC is the nearest to really offering the iPhone any real competition, earning a 39 percent retention rate among users UBS Investment Research surveyed. The biggest loser, whose retention rate decreased from 62 percent to 33 percent during the last 18 months, was Research in Motion.

Two more vendors, Samsung and Motorola, with retention rates of 28 percent and 25 percent respectively, round out the top five companies.

When users were questioned on software alone, Android fared better, as 55 percent said they would stay with ‘s mobile platform. However, another 31 percent of Android users also said they are more apt to switch over to an iPhone for their next handset purchase, leaving an appreciable amount of Android users for Apple.

Analysts for USB said that the retention rates for Apple have held up “incredibly well” even as the iPhone’s market share continues growing.

And, when looking only at smartphone users planning to with handset manufacturers, Apple is the net winner. Out of the users looking towards switching, 50 percent plan to purchase an iPhone, while only 10 percent of those switching plan to switch away from an iPhone.

The poll suggests customer figures will increase, just marginally, for Samsung and HTC, making them, along with Apple, the only three net beneficiaries in the handset market. As for RIM and Nokia smartphone users, the survey showed the two manufacturers are going to be losing customers in droves.

UBS survey implied retention rates for smartphone users

UBS sees a “worrying” trend for Nokia, RIM and Motorola, in light of the Apple iPhone’s “stickiness”. They see the ability of Android to be able to generate “sticky” customers directly affecting whether the Nokia and RIM recoveries will ultimately succeed or fail.

515 customers took part in the UBS survey which focused on high-end customers internationally. UBS reiterated its “buy” rating for Apple stock (), targeting it at $510.

“Demand for iPhone, iPad and MacBook Pro remains robust, with a leading ecosystem that creates sticky demand,” they said. “We believe new opportunities such as TV sets are not factored in by the market and we view the valuation as attractive.”

(Via: Apple Insider)

, , , , Motorola, Nokia, Research In Motion, UBS

No comments yet.


Free iPod Apps      App Store Download      How to Jailbreak      IPod Touch Free Apps