| | | So, what happens when Apple's customer retention rate meets fractured Android's inability to inspire loyalty? Apple has many fanatical and loyal customers - no doubt - but if the ranks of first-time iPhone users are growing slower than the broader smartphone market because new prospects are choosing Android phones that cost less but do more, that will still lead to dwindling market share. It's what we've been seeing for months now.
Ever think about that? Of all those market electrons bouncing back and forth between different Android phones, there are always going to be some getting caught by Apple's much publicized ecosystem and much, much higher retention rate. Even Apple's retention rate, which is their strong suit, has been dwindling. Middle-aged males who pay for their own phones (as opposed to those who have their company pay for them, meaning they're not price sensitive) are leaving in droves.
Did I say it was much higher? Quite a bit higher, actually. Again, for each person who will say the iPhone 5 is better than the S3, you'll find someone who says the opposite. The objective fact is that the Note 2, Nexus 4 (and upcoming successor), S3, S4, HTC One, and a few other Android phones all have specs equal to or greater and are growing sales at a faster rate. I do think that a cheaper iPhone will take back some of this market share, but at the expense of profits. |
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