Customer Loyalty to Apple’s iPhone Declines for the First Time Ever!

Since Apple introduced the first iPhone way back in 2007, the number of smartphone owners who said they would definitely or maybe buy an iPhone for their next upgrade has steadily increased, never once falling. That has now changed since the release of the problematic iPhone 5.

Strategy Analytics made a study which found that this year, 88% of smartphone owners would likely or definitely buy an iPhone for their next smartphone purchase. This is indeed very high, but it’s down on the whopping 93% who said so last year. This downward trend was true across the USA and Europe and looks like it might continue next year.

The most likely reason for this appears to be the various problems plaguing the new iPhone 5, such as purple-tinged pictures and the poor maps app, being just two, along with a perceived lack of innovation. Paul Brown, director at Strategy Analytics’ User Experience Practice had this to say about this finding:

“There is no doubt that Apple is continuing its success in retaining existing user base while attracting new customers. However, negative press prompted by a perceived lack of recent innovation by Apple has meant we are starting to see some growth in the number of previously highly loyal consumers who are now reconsidering whether or not they will purchase a new iPhone for their next device.”

Taryn Tulay, an analyst at Strategy Analytics, explained that it’s the shift in the undecided that Apple should be most concerned about:

“it is the shift in the number of those who are unsure whether they will remain with the same brand for their next phone that Apple should be concerned about.”

So, is the highly profitable era for Apple about to begin a slow decline into a me-too player chasing after every penny of profit? Time will tell.


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