iPhone Loyalty Hits an All-Time Low
One of the things that Apple has long prided itself on is customer loyalty, particularly around its flagship device—the iPhone. However, data from BankMyCell found that, at least in the most recent quarter, customer loyalty to the iPhone dropped significantly.
BankMyCell, a service that let’s customers sell their used phones and upgrade to a new one, collected data from over 38,000 people trading in their phones since October 2018—a relatively limited sample size, in the grand scheme of things—and used that information to track Apple brand loyalty during the iPhone upgrade cycle. BankMyCell found that iPhone retention dropped 15.2 percent compared to the March of 2018.
In total, BankMyCell found that 26 percent of iPhone customers swapped their iPhone X’s for another brand, while only 7.7 percent of Samsung Galaxy S9 users switched over to Apple. Further, Samsung was the clear winner in the race to scoop up Apple’s lost customers. In June, 18 percent of customers who traded in their iPhones did so for a Samsung device.
BankMyCell then cross-referenced its data with stats from other companies to reach the conclusion that Apple’s customer loyalty level hit its lowest point since 2011. The firm determined that customer loyalty right now is roughly 73 percent, compared with an all-time high of 92 percent as recently as 2017.
While certainly not a good look for Apple—and a seemingly positive sign for Samsung—there hasn’t been a ton of great news for the smartphone market in general. The market finds itself in a bit of a sticky situation at the moment as global shipments are essentially in free fall. A Gartner report this week found that global phone shipments face their worst decline ever in 2019; the firm expects shipments of mobile devices to decline by 68 million this year, which is more than both the tablet and PC market. And earlier this year, Apple CEO Tim Cook warned investors and analysts that the company expected a rather shaky start to the year with a $9 billion drop in revenue because of poor iPhone sales.
As consumers hold onto their mobile devices longer, brands have attempted to combat the slowdown by launching higher-end, higher-priced devices—a move that is likely to help keep revenue up in the short term, but may force even longer refresh cycles in the years to come.
What We’re Reading
- U.S. Senator calls for probe into Russian startup’s FaceApp over privacy and data collection concerns. (Engadget)
- iPhone 11 dummy-handset leaks all but confirm that huge camera bump on the back of this year’s phones (Techradar)
- Comcast expands Xfinity Mobile support to select recent Samsung Galaxy devices. (The Verge)