Apple iPhone users continue to demonstrate remarkable loyalty to the brand, outperforming all other smartphone manufacturers. A slight decrease in loyalty doesn’t significantly impact the overall picture without more substantial data.
Recent statistics reveal that 89% of iPhone owners choose to buy another iPhone when upgrading, a metric known as the loyalty rate that indicates brand adherence among consumers.
While 89% remains a strong figure, it’s a drop from a peak of 94% in 2021, based on new findings from Consumer Intelligence Research Partners (CIRP).
This drop may seem concerning, but labeling it a significant change is difficult without further context. CIRP hasn’t disclosed its sample size or margin of error, and a five-point decline over three years may not suggest a clear trend.
In a market where average customer retention falls below 70%, Apple’s loyalty rate still positions it as a leader, despite this so-called decline.
Conversely, Samsung appears to be improving its standing, with a reported customer retention rate of about 77%. However, this figure also lacks detailed sourcing in the latest CIRP report.
Samsung has gained from LG’s exit from the US smartphone market in 2021 and a reduced pool of Android competitors. With fewer significant alternatives available, Samsung has become the default choice for many Android users, although not necessarily the most favored.
A Ceiling, or Just Noise?
Despite a drop from 94% to 89%, Apple’s loyalty rate remains the highest in the industry, making claims of serious trouble questionable. CIRP’s data reflects trends from the twelve months ending March 2024 but is based on unspecified survey methods.
The apparent decline may be more about statistical noise than a real trend. It also coincides with rising prices and decreased incentives for upgrades.
Smartphone loyalty: percentage of users who purchased the same brand again in the year ending each March. Image credit: CIRP
With the iPhone 16 Pro starting at $999, many users are retaining their devices for longer periods. This trend likely reflects changing economic priorities rather than reduced brand loyalty.
Some analysts have pointed to Apple’s upcoming adoption of RCS messaging in iOS 18 as a potential weakening of ecosystem lock-in. This new standard allows for features like high-resolution media, read receipts, and typing indicators between iPhone and Android users.
Samsung Benefits from Fewer Android Competitors
Samsung’s rise in loyalty may be more reflective of diminished competition than revitalized customer enthusiasm. With LG’s departure and brands like Google and Motorola capturing only minor market shares, Samsung often prevails by default.
Its midrange Galaxy A series has attracted cost-conscious consumers, thanks to competitive hardware and enticing trade-in offers. However, it remains uncertain whether these users are genuinely loyal or simply opting for familiarity.
Without further details from CIRP, it’s challenging to assess how much of Samsung’s loyalty increase is genuine versus circumstantial.
What’s Next for Apple?
As the iPhone 17 lineup approaches in 2025, Apple is likely to face slower upgrade cycles, tighter household budgets, and regulatory changes, particularly in Europe. The Digital Markets Act has already compelled the company to modify its App Store policies, with further interoperability requirements likely on the horizon.
Despite this speculation, there are no substantial indications that Apple’s customer base is diminishing. An 89% loyalty rate positions it well ahead of all competitors.
If any shift is occurring, it appears to be extremely minor.