Study finds Apple ecosystem helps iPhone lead industry in user retention
A report released on Thursday by research firm GfK shows that 84% of current iPhone owners plan to purchase another Apple handset when they replace their cellphone, with many smartphone users saying the ecosystem of a mobile OS is a determining factor when upgrading, according to Reuters.
The study conducted over 4,500 interviews of smartphone owners in Britain, France, Germany, Italy, Spain, Brazil, China, the U.S. and Japan, finding that the iPhone had the highest retention of customers, followed by devices running Google's Android OS and RIM's BlackBerry, with 60% and 48% respectively.
GfK analyst Ryan Garner notes that an average 63% of respondents plan to replace their current device with one running the same OS, lowering the possibility of quick market swing. Subsequently, manufacturers are jockeying for position as customer loyalty becomes ever more crucial in a mobile market that is quickly being saturated.
The analyst goes on to say that the more services and features a customer uses in a particular mobile OS environment, the more entrenched the user becomes. Nearly one in five consumers who own both an iPad and iPhone believe that switching to another OS would be more difficult than changing bank accounts or gas or electricity providers.
"Those who are satisfied with their current set-up will be difficult to tempt to a new platform and the more services they use, the greater a consumerâs loyalty to a brand,â Garner said.
With over 70% of consumers saying features and seamless access to content are major factors in staying with their current mobile OS, the push for a value-added ecosystem is becoming a greater priority for the industry.
Apple's iCloud and iTunes are examples of creating an experience that customers not only enjoy, but cite as a reason to stay with the iOS platform due to financial and personal investments.
The study found that respondents cited three main arguments regarding user experience as barriers to switching devices; 33% being too invested in apps and current phone setup to change, 29% claiming that learning how to operate a new device is a detriment and 28% sees moving digital content from one smartphone to another as too much of a hassle.
"The smartphone providers that create harmonious user experiences will be able to increase consumer loyalty, as consumers find it more trouble than itâs worth to switch their digital life on their smartphone â as well as increasingly on tablets too," Garner said. "In a competitive market, brands that invest in user experience will yield great results."
However, device simplicity and integration with a digital world of content are not the only factors in choosing to stay with a device. Cross-platform access to already purchased media or apps is also seen as a driving force for some users.
Almost three quarters (72%) of smartphone owners feel that it is important to access to their digital libraries across multiple platforms, with the figure jumping to 80% for users who also own tablets and PCs. In this case, Apple's walled-in iTunes system becomes a negative aspect to the overall Apple environment as all apps and much of the media purchased through the service can only be used on iOS devices.
China, seen by many as the most important developing mobile market for Apple, places the greatest importance on cross-platform access with 92% of respondents emphasizing the need for media to be compatible across all devices.
Despite Apple's "walled garden," an AppleInsider report suggests there is high demand for the iPhone in China, with the newest iPhone 4S reportedly set to go on sale within two weeks after recently being approved for sale.
Garner notes the sum of the findings, from user experience to cross-platform media access, points to success for the manufacturer or OS developer that can most quickly attract users with an innovative and easy to use mobile platform.
"Those in dominant market positions, who create amazing user experiences, are potentially in the strongest position, and will be the most difficult to challenge in terms of capturing market share,â Garner said.
59 Comments
Yea, it's both good and bad.
My best advice to friends is, "never become entrenched". Once you start choosing products and services based solely on the brand name, you are done. Always judge each individually on its own merit. The more expensive option will always appear simple, but by no means does that make it the best.
My best advice to friends is, "never become entrenched". Once you start choosing products and services based solely on the brand name, you are done. Always judge each individually on its own merit. The more expensive option will always appear simple, but by no means does that make it the best.
Agreed. Many people buy Android based on the Google name, and haven’t done the thorough research to realize how much they are giving up compared to iOS. A ‘sort-of iPhone-alike” is still an awesome gadget compared to what existed pre-iPhone; yet I see Android users fighting their phones to get simple tasks done, and running out of battery in the process, and I can only hope that they get some comfort from the Google brand name (and “open” buzzword that mainly helps the carriers/handset makers). Cheap is not always the best... and although Android exists to sell you to advertisers, Android handsets still aren’t even cheap! The handsets start at free (short-sighted gimmick) just like the iPhone does, and then they get abandoned to make you buy the next one. And then you buy the next one because the old one isn’t good enough... unlike Apple users who come back to Apple because their last experience WAS so good!
Neither platform needs to lock you in: just choose free or ad-supported or at least cheap apps. If you spend a lot on paid apps—even on Android—then yes, that’s an unavoidable lock-in of sorts: different OS’s do not run the same native apps, so you’d have to re-buy apps when you switch to iOS (or vice versa). Music is no lock-in: Apple doesn’t use DRM, and iTunes/iOS support non-iTunes music just fine. Ditto for non-Apple eBooks. Movies? Yes, from any source, they’re sadly still DRM-burdened most of the time.
The “lock-in” isn’t extra security measures or something; it’s that Apple’s whole system works so well together you don’t want to settle for some other mess!
They had to do a study to figure out the obvious?
They had to do a study to figure out the obvious?
Well, actually, they had a study first to see if they were going to study it.