Apple iPhone Has 89% Retention Rate; Android Users Likely to Buy iPhone Next

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The smartphone industry is tough, especially when you’re competing with big names like Apple. A recent survey done by UBS Investment Research says that majority of high-end iPhone users will buy another iPhone the next time around. Android users may not be as loyal.

The smartphone competition is not just about market share. Even as Android is currently topping sales figures around the world, a worrying fact for Android handset manufacturers might be brand loyalty. In a survey done by UBS Investment Research across 500-plus high-end users, 89% of iPhone users say they are most likely to buy another iPhone for their next smartphone purchase. In contrast, the next closest hardware figure is HTC, which gets a 39% retention rate.

According to the survey, the most worrisome figure would be for RIM, as the retention rate for BlackBerry smartphones has dropped from 62% to 33% in the last 18 months. UBS cites Apple’s strong brand as the biggest factor in its high retention rate among consumers.

Demand for iPhone, iPad and MacBook Pro remains robust, with a leading ecosystem that creates sticky demand. We believe new opportunities such as TV sets are not factored in by the market and we view the valuation as attractive.

Still, Android is not completely out of the picture as a strong contender. The research has found out that in terms of software, 55% of Android-using respondents say they will stick to the platform in their next purchase, independent of any handset brand. However, 31% of these Android users say they will switch to an iPhone when they buy a new phone.

In terms of all respondents planning to switch to another platform, Apple seems to be a net winner. 50% of smartphone users from other platforms say they want to buy an iPhone. Meanwhile, only 10% of current iPhone users want to go for another platform.

The survey makes for some interesting study, given the demographic of high-end international customers. But is it the same sentiment across the board?