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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. 0Milk0's Avatar
      0Milk0 -
      Money Money Money....
    1. thetoothfairy's Avatar
      thetoothfairy -
      Plain and simple Apple has taken over the cell phone industry! Its the best phone out there and no one will ever beat it! Upgrading as well when the white one can be ordered!
    1. giancarlo's Avatar
      giancarlo -
      I don't think those android google phones work better imo. Maybe it's because im used to the layout and locations for my iphone apps but I honestly think appl has a better user interface.
    1. scatman10's Avatar
      scatman10 -
      Quote Originally Posted by thetoothfairy View Post
      Plain and simple Apple has taken over the cell phone industry! Its the best phone out there and no one will ever beat it! Upgrading as well when the white one can be ordered!
      I as well think that the iPhone is the best handset out there as of now. But I'd be slightly careful to say that the iPhone will never be beat. I can see google taking over in the next 10 to 15 years.
    1. VBLUE42's Avatar
      VBLUE42 -
      I will agree that the iPhone is the best overall smartphone on the market. Its not that it is the best featured phone but it is the best overall when you compare features, app availability, community, and the option of increasing the unofficial capabilities through the jailbreak process. Clearly the Android powered phones are great phones that have a place for others who don't buy into the whole iPhone acceptance. The fact of the matter is however, the whole cell phone world changed overnight on 06-29-2007 when the first iPhone was released. Regardless of what phone is in your pocket right now, it is an order of magnitude better phone then it would be right now if the iPhone did not exist. All around the cell phone world is a great world because of Apple's contributions. And that fact, makes the iPhone the best damn phone available.
    1. vedavis's Avatar
      vedavis -
      We (the community) bash Apple here and elsewhere, but we keep coming back..."Please, sir, may I have another"...Why? Because Apple = MAGIC.
    1. iSteed's Avatar
      iSteed -
      I agree. Best ui hands down
    1. whereswaldo's Avatar
      whereswaldo -
      Fanboys stick with apple (iOS 4 autocorrected "fanboys" to "rabbits")
    1. Doran's Avatar
      Doran -
      Fanboys (iPhone 4 iOs4 Autocorrected "fanboys" to "gambit")

      Sorry, it autocorrected to "gambits"
    1. nautical79's Avatar
      nautical79 -
      People upgrade because we know the capabilities of the iphone and now it has what we where waiting for or what we asked for a 5mp camera, video calling and multitasking since the appear of the 3g one.
    1. crewxp's Avatar
      crewxp -
      Quote Originally Posted by thetoothfairy View Post
      Plain and simple Apple has taken over the cell phone industry! Its the best phone out there and no one will ever beat it! Upgrading as well when the white one can be ordered!
      talk about a fanboy....
      and to think it's a moderator too.
      whatever happened to unbiased staff
    1. zmanforever's Avatar
      zmanforever -
      Until you show me a phone that can jailbreak and run **********.

      Until then Apple is #1 in my view.


      Well I can not tell you what the app is so I fail.
    1. robertr1's Avatar
      robertr1 -
      Well what I want is my iphonw running the android os. Cooler and I still get apple apps.
    1. Happy Noodle Boy's Avatar
      Happy Noodle Boy -
      Quote Originally Posted by zmanforever View Post
      Until you show me a phone that can jailbreak and run **********.

      Until then Apple is #1 in my view.


      Well I can not tell you what the app is so I fail.
      If you're talking about a pirating app, yeah you cannot.
    1. zmanforever's Avatar
      zmanforever -
      Quote Originally Posted by Happy Noodle Boy View Post
      If you're talking about a pirating app, yeah you cannot.
      Nobody said that sir



      You won't see that from me again, unless it is censored profanity.
    1. SchmilK's Avatar
      SchmilK -
      If I didn't already have an unlimited data plan and had to get a new plan limited to 2gb/ month there's no eat in hell I would buy one either. Since Wednesday I have used 1.8gb streaming air video to/from work while driving 300 miles. Sure I could copy videos to the phone but it's much easier to stream. AT&T really screws up on the new customer data structures!!
    1. Kaid's Avatar
      Kaid -
      Thanks for sharing the survey.

      Apple have a superior product and consumer experience at the moment and continue to grow market share and have gone "from zero to hero" in 4 years helped by mobile replacement cycle of 2 years....

      Of course the converse applies if a better product arrives "hero to zero" in 4 years is also possible..... just look and see what happened to Palm.
    1. staterunner180's Avatar
      staterunner180 -
      So demand for Apple products are going up, while willingness to go to AT&T (a network that has been unanimously rated poorly) is down. Not surprising. and 1.5 million iPhone 4's, in THREE DAYS that's insane! I wish I could be one of the 1.5 million
    1. listenclose's Avatar
      listenclose -
      Quote Originally Posted by SchmilK View Post
      If I didn't already have an unlimited data plan and had to get a new plan limited to 2gb/ month there's no eat in hell I would buy one either. Since Wednesday I have used 1.8gb streaming air video to/from work while driving 300 miles. Sure I could copy videos to the phone but it's much easier to stream. AT&T really screws up on the new customer data structures!!
      I agree whole heartedly. If they force us off of the unlimited plan to get the future 4G plans I'm looking elsewhere.
    1. sziklassy's Avatar
      sziklassy -
      As it currently stands the unlimited data plan is still available to new customers for $30/month.