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  • The Numbers Are In: Apple Loyalty Driving iPhone 4 Sales

    It looks as though the iPhone 4 fan base has turned out in droves to upgrade to the iPhone 4. According to Piper Jaffray analyst Gene Munster, better than three-quarters of iPhone 4 sales were upgrades. While sales are sales nonetheless to Apple, the frequency with which iPhone customers stick with the product and upgrade to a new iPhone model every twelve to twenty-four months bodes well for the future of Apple's smartphone in an increasingly competitive marketplace.

    "The bottom line: 77% of new iPhone buyers were existing iPhone owners (upgrades), compared to 56% in 2009 and 38% in 2008," says Munster. "Apple is effectively building a recurring revenue stream from a growing base of iPhone users that upgrade to the newest version every year or two." Especially interesting is that 54% of iPhone 4 buyers spent their hard earned cash on the 32GB model. Last year, only 43% were willing to spring for the high-end model. 28% of new iPhone 4 owners also own an iPad. And 16% of buyers switched carriers to AT&T, down from 28% in 2009.

    Many analysts like Munster believe that Apple will sell between 1.0 million to 1.5 million new iPhones during the first three days of its availability (including preorders).

    Similar surveys have yielded comparable results suggesting intense customer loyalty to Apple. A freshly released Oppenheimer study, however, shows that Google's Android is rapidly becoming a preferred alternative to the iPhone both to new smartphone buyers or current iPhone owners looking for a change of handsets. In previous surveys, it was always the BlackBerry cited as the most preferable alternative or "second choice."

    Images via Fortune
    This article was originally published in forum thread: The Numbers Are In: Apple Loyalty Driving iPhone 4 Sales started by Michael Essany View original post
    Comments 24 Comments
    1. Doran's Avatar
      Doran -
      ^^^ Where did you read this???
    1. zmanforever's Avatar
      zmanforever -
      Quote Originally Posted by Doran View Post
      ^^^ Where did you read this???

      It is not, trust me.

      Look I had a 3GS running my $30 every month unlimited, and I just added a line cause I could not upgrade.

      The employee was very cool and told me to keep the unlimited 3GS line open cause it is a plan not available anymore, but if you had it prior policy is you can not lose it even in a upgrade.

      Just going to cancel the new line as soon as the iPhone 4 is jailbroken and unlocked.

      Until then just running it like Apple intends on a 2GB a month plan which is bs, but I guess that makes sense remember how AT&T said iPhone users using most data in US.

      That means time to profit from surcharges.
    1. remag49's Avatar
      remag49 -
      i bought the iphone 4 because of its app store
      everything else i could've done better on android

      but until they jailbreak it im stuck doing boring stuff on the iphone 4
    1. TheGrandFinale2001's Avatar
      TheGrandFinale2001 -
      Yeah, this survey makes sense. Once you try a really good product most people tend to stay with it.