Raymond James: Survey shows higher iPhone customer loyalty, greater upgrade frequency vs. Android

“In a note to clients this morning, Raymond James’s Tavis McCourt details responses to a survey of Apple (AAPL) customers regarding their purchasing intentions, responses he opines demonstrate higher loyalty toward the company than is enjoyed by customers of Google‘s Android operating system,” Tiernan Ray reports for Barron’s.

“Among the conclusions that McCourt derives from the survey us that users of Apple’s iPhone are willing to upgrade more frequently than users of other platforms, willing to stick with Apple products more than customers of other platforms are willing to stick with those platforms, and that a reduction in price is a principal factor that would bring in new buyers, whereas a larger screen on the iPhone would mostly prompt upgrades,” Ray reports.

• 53% of the iPhone owners in our survey expect to upgrade their smartphone this year while only 43% of non-iPhone owners intend to do so.

• The vast majority of iPhone users are very pleased with their experience and expect to stay with the iPhone when upgrading in the future.

• We also asked what would make someone more likely to purchase an iPhone. Not surprisingly, 37% mentioning a lower price was the highest response, with only 6% responded that a larger screen size alone would be needed.

More info in the full article here.

MacDailyNews Take: YKBAID.

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    1. I invented a version of dehydrated water. It takes up half the volume and weight of regular water and one litre of my dehydrated water will make two litres of regular water when you add one litre of water to rehydrate it.

  1. Of course. When you upgrade an iPhone, you get another round of cutting edge goodness. When you upgrade an Android you get another chance in the crapshoot.

  2. “Thank you, Mr. James, for agreeing to meet with me today.”
    “You’re welcome. What have you got for me?”
    “Well, you asked on the phone how our PR firm can get your name out into the public’s eye..”
    “Yes, I did. You have a proven strategy?”
    “Indeed we do. What we do is create a survey in your name asking about something that is basically already known and understood. We compile the survey results such that your name is associated with the conclusions we’ll draw, and since we’re guaranteed the results are accurate (since we knew the result before we started), you’ll get to present this survey as something ground-breaking — it’s a case of the message is the messenger.”
    “Sounds good. How long will this take?”
    “If you want to report percentages only we can survey far fewer people and get the “results” to you within a week or so.”
    “Where do I sign?”

  3. This data needs to be repeated, so this Raymond James did a useful job.

    And about the purchase price: in America, for most people, purchase price is equal the upfront downpayment they pay when they sign the two-year contract. So, ever since 3G, iPhone cost $200 to have, which is not that much more expensive than many androids.

    And now, with the new T-Mobile offerings, a latest-generation iPhone (currently, 5) can be had for just $100 down and 24 installments of $20.

    While I’m sure there are a few American customers who are aware that the purchase price of the iPhone is actually $650 (and are unwilling to pay that, when they can get a new mid-class Android for half the price), most Americans only know about $200 tag (and now $100 with T-mob).

    Apple’s refresh cycle has the most optimal stride; with the two-year contracts, people skip a generation and essentially always get a new iPhone as soon as they become eligible. The numbers shouldn’t surprise anyone out there.

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