Apple ahead in mobile loyalty: Gfk research firm

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The Apple logo is shown prior to the initial sales of the new iPhone 4S at Apple's flagship retail store in San Francisco, California October 14, 2011. REUTERS/Robert Galbraith

The Apple logo is shown prior to the initial sales of the new iPhone 4S at Apple's flagship retail store in San Francisco, California October 14, 2011.

Credit: Reuters/Robert Galbraith

Thu Nov 24, 2011 7:02pm EST

(Reuters) - Apple is well ahead of rivals in building brand loyalty among its users in a mobile market where the key brands are rushing to build as large a foothold as possible, a study by research firm GfK showed.

Some 84 percent of iPhone users said they would pick iPhone also when they replace their cellphone, while 60 percent of consumers who use smartphones running Google's Android said they would stick with phones using the same software.

Only 48 percent of people using Research In Motion's cellphones said they would stay loyal to their Blackberrys, the study showed.

Smartphone sales have been surging since Apple introduced its first iPhone in 2007 and even though the growth has slowed the sales still rose 49 percent last quarter from a year ago, according to research firm IDC.

Ryan Garner, analyst at GfK, said the ongoing rush to build market position was crucial for the future success of the brands as on average 63 percent of consumers are sticking to the type of phone they have -- lowering the chance for fast changes in the market place.

Garner said fast growth of Android and launch of new Microsoft Windows, which will be similar for PCs, tablets and smartphones, mean there are still opportunities for others.

"Apple is clearly ahead of the game, but developments next year will challenge that," Garner said.

More than 70 percent of consumers said they would stick with their phones due to their seamless integration of features and access to content.

"The scope for brands to lure customers from rivals has diminished and the richest rewards will go to those providers that can create the most harmonious user experience and develop this brand loyalty," GfK said.

The research firm interviewed around 4,500 people in Britain, France, Germany, Italy, Spain, Brazil, China, the United States and Japan.

(Reporting By Tarmo Virki, editing by Bernard Orr)

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Comments (1)
forteinjeff wrote:
Maybe the reason Apple sales have slowed is because their products are built so well we don’t need to replace them as often? My IPhone 3GS is still working just fine so why upgrade to the 4 or 4S when my portable computing needs are being met just fine? Of course we’re loyal. Apple doesn’t make cheap stuff but their stuff lasts. Over the long haul my smart phone has been cheaper to own than any cell phone I’ve ever owned in the past. Meanwhile once we’ve use the IPod, or IPhone, we’re then sucked into buying more (I had to get an IPad2 that’s wonderful) since we enjoy the ease of use and reliability. Next on my list is the home entertainment system/desktop computer system. Meanwhile notice even companies such as HTC that was the darling of tech just months ago is now worrying to death over their next sale. The best not only floats to the top, it stays on top. It’s the buyer who’s decided here not the media.

Nov 25, 2011 12:31pm EST  --  Report as abuse
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