Apple Brand Loyalty Declines in Favor of Android Devices
To its dedicated army of fanboys (and
girls) Apple is more than a brand, it’s a bit of a cult. But a recent report by
smartphone price comparison site, suggests the allure of the almighty iPhone is
According to the report, iPhone retention
rates have fallen by 15% in 2019 with more than a quarter of iPhone X users
switching to Android smartphones when users trade in their old devices.
Meanwhile, only 7.7% of Android users are tempted to trade in their devices in
favor of an iPhone. This is on the back of a 17% decline in iPhone sales in the
first quarter of 2018 adding to Apple’s woes.
Sales Slump – Has the Bubble Burst?
The biggest winner in this race for smartphone domination is Samsung, with more than 18% of iPhone owners who traded in their devices in June 2019 picking up one of their devices. Another 5.4% of Apple owners swapped their devices for an LG device and 2.2% for a Motorola handset.
Interestingly, the report suggests that 2.1% of smartphone owners didn’t know what brand device they were using, suggesting that for many users a smartphone has become a rather generic product where brand is not really important.
Is This Happening?
According to a BankMyCell spokesperson,
Apple devices are just not that thrilling anymore, especially when they have
become so expensive.
It’s not that the latest Apple devices are
bad, it’s just that Android devices are now matching them in terms of quality
and typically offer much better value for money.
This is a theory is supported by many
Speaking to journalists,
Ponela, a research analyst at IDC, said: “Apple is increasingly transforming
itself into a luxury brand and consumers are increasingly turning to the array
of Android devices.
“Apple has always played in the more affluent end of the
market and its iPhones have always carried a premium price over competing
smartphones with similar performance. Apple moved to revamp its device lineup
by doubling its offering on thousand-dollar phones, and simultaneously dropping
its least expensive models, which has made it clear the vendor is no longer concerned
with appealing to customers of more limited means.”
Reading: The Rising
Cost of Smartphones Creates a Burgeoning Second-Hand Market.
While it’s fair to say that Apple products led the market in terms of innovation and quality since the inception of the iPhone in 2007, brands like Samsung, LG, Motorola, and more recently Huawei have really closed the gap.
The choice at the top end of the market in
terms of screen size and quality, memory, and storage, and the all-important
battery life means serious smartphone users no longer have to make compromises
on device functionality if they wish to purchase a slightly lower-cost device.
As cutting-edge features have filtered down to
the budget end of the smartphone market (where Apple is nowhere to be seen),
Android devices have no competition.
Reading: BRICS: A
Smart Future Built on Affordable Devices.
The Affect The App Industry?
The signs for the Android app economy are incredibly
As far back as 2017, industry insiders were
noticing a seismic shift in the marketplace with Android
devices closing the monetization gap with
Apple. Games developers, in particular, were highlighting how larger,
higher-quality screens and faster processing speeds were lifting their
It’s still a long way from a level playing field yet. While Google Play now
dominates the download market, accounting for more than 74% of downloads across
all devices, consumers typically spend 80% more revenue on iOS devices. This is
because Apple devices still hold significant market share in more mature
economies like the United States while Android devices own the global market.
While it might take longer for emerging markets like India and Brazil to catch
up, due to their massive populations when this happens it will happen fast.
Further Reading: Brazil: The App Economy is About to Explode.
Free from Apple’s Walled Garden
While it would be foolish to ignore the
revenue-generating opportunities presented by both the Apple App Store and
Google Play, it would also be unwise to not talk about the cost of acquiring
new app users through these channels — 30% of any revenues generated over the
lifetime of an app.
If you want your app on an Apple device there
is no avoiding Apple’s fees. However, there are alternative routes to market on
an Android device as famously explored by the Epic Games, the creators of
Reading: Will Epic
Games Change The Way Smartphone Users Download Apps?
For organizations who perhaps don’t have the
marketing and PR clout afforded by the world’s most popular game (even before
it reached the Android platform), it is still possible to cut the Google Play
Store out of the equation, reducing acquisition costs and maximizing
activations and revenue earning potential.
Digital Turbine can help you dramatically
increase engagement with your apps via a strategy of pre-loading (targeting
specific devices, geographic areas, etc.) and SingleTap™ installs — essentially
helping you put your app in front of the right person at the right time.
To learn more about how Digital Turbine can help you reach more people and make more money via the Android app eco-system, talk to one of our app marketing experts today.