Proprietary survey shows U.S. iPhone loyalty rate climbing from 86% to 92%, dwarfing competitors.
From a note to clients by Katy Huberty that landed in my inbox early Wednesday:
Retention Rate on the Rise as Supercycle Approaches. New AlphaWise survey points to a 92% US iPhone loyalty rate vs. 86% last year… 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 Y/Y increase. Importantly, the rise in Apple’s loyalty rates comes after Samsung, Apple’s biggest competitor in the US (Exhibit 3), 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%).
Reiterate Overweight, raise price target to $177 from $161.
Below: Tracking iPhone retention rates.
Click to enlarge. Not seeing the bar chart? Try the website.