Apple Ecosystem Helps iPhone Lead Industry in User Retention

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Since day one, Apple has been criticized for having a closed ecosystem and not giving customers choice. Apparently, this is what makes the company considered to be “evil.” HA! Think again, folks. A new study reveals that iPhone owners are the most loyal smartphone users in Apple’s ecosystem, driving an over 80% retention rate for the device.  Hold up! An “open” OS doesn’t have the highest retention rate? How can this be?

A report released  by research firm GfK shows that 84% of current iPhone owners plan to  purchase another Apple handset  when they replace their cellphone, with many smartphone users saying the ecosystem of a mobile OS is a determining factor when upgrading, according to  Reuters. Yeah, makes sense. Just think about it…if all of your content was in one ecosystem, why switch? Also, which other ecosystem offers an amazing service like iCloud for free?

The study was conducted over 4,500 interviews of  smartphone owners in Britain, France, Germany, Italy, Spain, Brazil, China, the U.S. and Japan, finding that the iPhone had the highest retention of customers, followed by devices running Google’s Android OS and RIM’s BlackBerry, with 60% and 48% respectively. According to GfK  analyst  Ryan Garner, he notes that an average 63% of respondents plan to replace their current device with one running the same OS. In fact, manufactures are also trying to gain customer loyalty since the mobile market is quickly being saturated. Shockingly,  one in five consumers who own both an iPad and iPhone believe that switching to another OS would be more difficult than changing bank accounts or gas or electricity providers.

This leads me to believe that maybe customers just want a fantastic product that just works after-all.

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Parth Dhebar

Parth Dhebar is a 18 year-old entrepreneur. He is the founder of Simple Reviews, a blog focused on reviewing iPhone and iPad applications. Parth is a recognized name in the industry, known for covering Apple news. He is an editor at Techie-Buzz covering news on Apple. You can follow him on Twitter @pdparticle.