Thursday, November 1, 2012

Apple Inc. (NASDAQ:AAPL): Slight Drop in User Loyalty in US and Europe for iPhone

According to computations from Strategy Analytics, Apple Inc.(NASDAQ:AAPL) might have to worry about a tiny yet disturbing trend, because the loyalty rate of its iOS platform seems to have dropped in Europe and the US. A survey was conducted about how many users are willing to buy their next phone from Apple and the data was compared to 2007, when iPhone made its debut. Surprisingly, the number of users has dwindled slightly, even as most users still remain loyal.

The Wireless Device Lab Report from the firm has confirmed that around 88% of the iPhone user base in the US will stick to purchasing phones from Apple. In 2011, the numbers showed a whopping 93% willing to purchase their next phone from Apple, which makes it clear that this is a letdown. In Europe, 75% is still loyal to Apple; declining from the 88% data obtained a year before.
Director of Strategy Analytics has stated that the new figures, irrespective of the dip in loyalty, are promising and ensure that Apple will continue to enjoy success in retaining existing customers and also attracting newer ones. He said that the drop in figures is due to the negative press and theories about a lack of innovation by Apple in making some customers more open to considering another manufacturer.
Recorded data has clearly shown that owners of devices powered by iOS are more loyal when compared to any other brand as 21% of them will not make the transition to another device regardless of the price. Overall, owners of mobile products from Apple are 52% more loyal than Android users are to the manufacturers of their handsets.

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