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Friday, July 21, 2017
Memory Industry News
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Based on high loyaty rate, iPhone 8 predicts to sell


Friday, May 19, 2017

It appears that iPhone users are extremely loyal customers. In a survey conducted this April, financial services firm Morgan Stanley established that 92% of iPhone owners who were likely to buy a new handset in the next 12 months plan to upgrade to another iPhone. 

This is a sizeable 6% year-over-year increase compared to the 86% recorded by Morgan Stanley in 2016. In fact, the loyalty rate for 2017 is almost tied with Apple's all-time record of 93% documented in 2015 when the iPhone 6s was launched.

Morgan Stanley analyst Katy Huberty puts these numbers into perspective in the research note:

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%).

These are not the only interesting revelations that can be found in the Morgan Stanley note - the Wall Street firm also predicts that there would be no delays in the arrival of the iPhone 8.

By: DocMemory
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