92% of iPhone users will stick with Apple when upgrading

iphone 8 display iPhone 8 is
going to be huge for Apple.
Photo: Martin Hajek

Even the biggest of iPhone fans would admit that the device has
become somewhat boring in recent years, but that
hasn’t had any impact on loyalty to the Apple brand.

According to a
new study, a whopping 92 percent of iPhone owners who plan to
upgrade within the next 12 months will choose another Apple
smartphone. That’s the highest retention rate among any
smartphone maker, and it suggests iPhone 8 will be
huge.

Thanks to less than spectacular upgrades, the iPhone lineup has
suffered a brief decline in demand. But rather than jumping
ship in pursuit of competing devices, fans are waiting for
Apple’s next big thing.


In a

research note published on Wednesday
, Morgan Stanley
analyst Katy Huberty explained that customer loyalty for Apple
far outweighs that of any other brand. Its 92 percent retention
rate, up from 86 percent last year, exceeds Samsung’s 77
percent and LG’s 59 percent.


It seems Huberty’s previous prediction
of an
iPhone “super-cycle” this year
 could be right on the
money. With that in mind, the analyst has raised her price
target on Apple stock from $161 to $177.

Apple
is expected to make incremental improvements to the iPhone 7
series for an “iPhone 7s” this year, but most of us are excited
for the rumored iPhone 8. The device is expected to bring

a new design and significant changes
 to celebrate the
iPhone’s tenth anniversary.


Those
changes could include an
OLED display
with an
integrated Touch ID scanner
,
dual front-facing cameras
with
iris or facial recognition technology
, and of course,
Apple’s next-generation A11 processor. Some rumors have also
hinted at new augmented reality
functionality
.


Apple will
be hoping that the device can reinvigorate the iPhone brand and
ignite explosive growth once again. And with 92 percent of
upgraders planning to buy another iPhone within 12 months, it
looks like that plan is well on track.




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