“Apple’s new iPhone 4 is proving to be one hell of a brand loyalty generator. According to Piper Jaffray analyst Gene Munster, 77 percent of iPhone 4 sales Thursday were upgrades purchases by existing iPhone owners,” John Paczkowski reports for AllThingsD. “Compare that to 56 percent in 2009 and 38 percent in 2008 and you’ve got quite the trend.”
“‘Apple is effectively building a recurring revenue stream, where iPhone users pay on average $200 year to stay current with the latest phone,’ Munster wrote in a note to clients this morning,” Paczkowski reports. “[Munster continues], ‘While its true that iPhone 4 is a more significant feature upgrade compared to the 3GS, and we expect this upgrade rate to decline next year, Apple has in three years built brand loyalty in the phone market that compels users to upgrade to the latest version and wait in line for one to six hours to pick up their iPhone.'”
Full article, with details’ of Munster’s iPhone launch survey, here.