iPhone Has Strong Loyalty With Retention Rate of 89%
By on September 24th, 2011

Earlier this week, it was reported that an “evil”, non-marketshare leader, and “closed” company had once again topped the index for the most satisfied customers. Today, a new report reveals a mind blowing fact about iPhone owners. A good 89 percent of iPhone have suggested that they will continue to stick with Apple for their next handset, crushing competition.

According to the report, the closest competitor to Apple in terms of hardware is HTC. HTC earned a 39 percent retention rate among users surveyed by UBS Investment Research. Surprise! Surprise! (Not really.) The company that fared the worst in the survey was Research in Motion (the company, however, doesn’t think it is doomed),  whose retention rate has dropped from 62 percent to 33 percent in the last 18 months.

Smartphone retention rate

Rounding out the top five companies in terms of retention rates were two more Android vendors: Samsung and Motorola, earning 28 percent and 25 percent, respectively. In addition, when users were asked only about software, 55 percent said that they would stick with Google’s Android. An additional 31 percent of Android users also indicated that they would switch to Apple’s iPhone, you know, the platform that lacks Flash and isn’t “open”. This number leaves Apple with a significant number of potential Android users.

UBS analysts said that Apple’s retention rates have held up “incredibly well,” even as the market share of the iPhone continues to grow.  More than 50 percent of those looking to switch plan to buy an iPhone, while just 10 percent of switchers plan to ditch the iPhone.

Wait a minute, this report boggles my mind. Why on earth would iPhone users keep on coming back to a closed and Flash-less OS? Do they not love the Tegra 2 chipset that Android devices offer?

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Author: 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.

Parth Dhebar has written and can be contacted at parth@techie-buzz.com.
 
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