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Ricardo Bilton & Gloria Sin

Survey says few smartphone owners are loyal to brands

By | November 29, 2010, 10:06am PST

Summary: Just how many consumers in the smartphone market are loyal to a particular brand? Not many, according to a survey to be published today.

Just how many consumers in the smartphone market are loyal to a particular brand? Not many, according to a survey to be published today.

The real brands here are not the companies that produce the smartphones but rather the operating systems supporting the devices. As reported by Reuters, here’s a clear look at the numbers:

  • 56% of smartphone owners in “key global markets” are keeping an open mind about their next smartphone purchase
  • 25% of smartphone owners plan to stay loyal to the operating system of their current handhelds
  • Brand loyalty is highest with Apple at 59% and lowest with Microsoft at 21% (For reference, RIM comes in at 35%, Android at 28% and Nokia at 24%)

Apple might look like it has the market cornered here. But with the ridiculous Antennagate incident earlier this summer, a white version of the iPhone 4 that seems like it will never be released and how reluctant Apple is to move on to an additional carrier in the United States, Apple has proven that it is not infallible in this arena. Yet more so, the competition has really stepped up to the plate this year.

Instead of looking at RIM in second place (which has a solid footing with the business-focused consumer base), the Cupertino-based company should be fearing Google’s Android OS the most. The Android market share is growing thanks not to one manufacturer, but several companies (primarily HTC, Samsung, Motorola and LG) taking the Android platform and installing it on their new smartphones.

Android has had several major hits this year, including the HTC Droid Incredible, Motorola Droid X and 2 models, and the Samsung Galaxy S series, just to name a few. Microsoft has followed a similar path since October with Windows Phone 7, so we could see the numbers change in Microsoft’s favor too.

Other factors that will likely change these figures significantly during the next year include the upcoming release of Gingerbread (Android 2.3), how well WP7-based smartphones fare here and abroad, and if Apple does really open up to Verizon or other carriers domestically.

Are you loyal to particular smartphone OS? Or are you open to moving on to another platform when it comes time to make another (or even the first) smartphone purchase?

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Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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RE: Survey says few smartphone owners are loyal to brands
non-biased 6th Dec 2010
@tonymcs@... Seen a lot of ads and over the top product placement in shows for WP7 and to me it look more like a kids puzzle than a quality device and I prefer iOS. The thing is that is my opinion and just as it doesn't apply to you, your opinion doesn't necessarily apply to anybody else either. I will try a WP7 phone out just to see how it is and maybe it could win me over but not based on what I have seen at this point. Everyone has different needs/wants and having competition is a win for all of us no matter what OS we prefer.
Clearly anti-competitive and clearly something that the DoJ and the EC must investigate. There is a very simple solution: allow all OSs the exact same access to iTMS. This isn't unprecedented. The EC forced MS to grant Linux 1st class access to Active Directory.
@NonZealot
were more loyal to Apple because of iTMS? Further more did the article above even mention iTMS?

Pagan jim
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So what you're saying
John Zern 29th Nov 2010
@James Quinn is that all the money spent on apps in the iTunes store are easilly transferable to a WP7 or Android phone, so there'll be no need to repurchase them if someone switches from an iPhone to an Android phone?

And what of the music? You can copy them straight into Android or WP7? I ask because I'm not sure what file type a purchased song from iTunes is saved in.
@John Zern


Music from iTunes is in standard AAC format, and can be played on any standards compliant player.
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Thanks, msalzberg
John Zern 29th Nov 2010
I wasn't sure about that.
@John Zern

Pagan jim
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I'm still curious on the apps question
John Zern Updated - 29th Nov 2010
Janes Quinn. Would the fact that someone spent alot of money on iPhone apps force the users into upgrading to the next model, unlike WP7 or Android, on which there are different models, and carriers to choose from, while still keeping the same basic OS?
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Define "A lot of money"
James Quinn Updated - 29th Nov 2010
@John Zern
There are a number of free Apps and many cost like a buck or two. There are some that are expensive like I purchased a turn by turn App co-pilot and I've not checked with them about their policies via if I were to purchase another phone with a different OS do they have an upgrade or change over policy? Do they want my continued business? They might who knows? For the very most part seeing the majority of Apps don't actually cost that much I find that hardly a reason not to switch if the need is there to do so.

Pagan jim
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@John Zern
Bruizer 29th Nov 2010
The Application Issue is true regardless of Windows, Mac, iOS, Android or what not.

Cross platform compatibility has always been low and mobile devices are no different. If you sink money into Android Software and switch to WP7, you can't use those apps.

So if you sink money or workflow into an OS, that is a "lock in" and iOS is no different than Android, WP7, Symbian or any other mobile platform.
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@John Zern But what about those people who invested money into Android apps that switch to WP7 or iOS? And then there are those who invested money into WP7 apps that switch to iOS or Android... Not to mention the BB users who might be jumping ship for any of the above 3 and have put money into BB apps. I'm curious as to how this is an Apple only issue as you seem to be saying here. I hate to say it but it's a risk one takes - I sunk quite a bit of cash into apps for my old WM device, cash I "lost" when I went from WM to iOS... I can understand the issue having experienced it firsthand but this is not and never was a solely Apple issue.

Fortunately music and other media downloaded from iTunes can be shared between platforms.
@NonZealot

You are funny how you mix lies, exaggeration and plan obfuscation.

Using an exclusive arrangement to gain a competitive advantage is not illegal until you are shown to be a monopoly.
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This is simply not true
NonZealot 29th Nov 2010
@Bruizer
MS was punished by anti-trust courts for behavior they engaged in from before the findings of fact declared MS to be a monopoly. So you are wrong... again.
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@Bruizer

You first have to be shown to be a monopoly and then you are punished. Show me where iTMS has been shown to be a monopoly. Show me an active case. Show me something.

WAIT!!! You can't. It must be horrid being wrong all of the time.

So again, using exclusivity within your own product line is not, in of itself, illegal to gain a competitive advantage.
@Bruizer
You first have to be shown to be a monopoly and then you are punished.

Yes, you do have to be shown to be a monopoly before you can be punished. However, you most certainly can be punished for actions undertaken before you were declared to be a monopoly. The order is:
1. You leverage your monopoly in 1 market to gain an advantage in another.
2. You are declared a monopoly.
3. You are punished for your actions in step 1.

Apple is currently at step 1.
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@SuperZealot

Yes, you do have to be shown to be a monopoly before you can be punished. However, you most certainly can be punished for actions undertaken before you were declared to be a monopoly. The order is:
1. You leverage your monopoly in 1 market to gain an advantage in another.
2. You are declared a monopoly.
3. You are punished for your actions in step 1.

Apple is currently at step 1.


And that lies at the heart of your lies (lies because you know better and want to tweak the truth to your world view). With Rhapsody, the Zune Market, Amazon it is hard to say Apple has a monopoly. Basically, 25% market share does not a monopoly make. Even if you restrict the scope to just digital download and not digital music, a 70% share (and falling slightly) does not a monopoly make. Being the largest single distributor of music does not a monopoly make.

So again, it is not illegal, in and of itself, to leverage your strength in one product line or market to aid another of your product lines or markets.
@NonZealot I won't presume about the EC, that "government" is so full of whack-jobs it's not even funny. As for the FTC, the agency that actually determines what is "anti-competitive", the fact that after all this time they haven't said anything pretty much means there's nothing to say. As long as Amazon sells MP3s and you can rip audio CDs to iOS devices Apple is golden.
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First off, you have it wrong
NonZealot 29th Nov 2010
@matthew_maurice
As long as Amazon sells MP3s and you can rip audio CDs to iOS devices Apple is golden.

The problem isn't that iOS devices can't use alternate methods of accessing music, the problem is that non-iOS devices can't use iTMS as 1st class citizens. Windows worked just fine with 3rd party LDAP providers but the problem was that Linux didn't work just fine with Active Directory.
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First off, you have it wrong
msalzberg 29th Nov 2010
@NonZealot

Really? You can't download music from iTMS and use it on your Zune? Perhaps you should ask someone for help.
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As usual, you're the one who's wrong.
matthew_maurice 29th Nov 2010
@NonZealot What you think is "the problem" isn't a problem for anyone but you.

You don't like Apple, we all get that, but do you really think Apple doesn't employ a couple of hundred lawyers who are all smarter than you? Because if so, well then you're wrong about that too. Seriously, until you pick up a J.D. someplace you really need to stop deciding what's legal or not.
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@NonZealot So your issue here is that - from what I'm getting from your post - is that non iOS devices can't use iTunes to sync music? Is that what you mean by "...non-iOS devices can't use iTMS as 1st class citizens..."? I've had this argument before with a Palm person - with syncing iTunes is just as proprietary as Active Sync is for WM, as Blackberry Desktop Manager is for Blackberry, as whatever sync program is used for Android... but ALL of them can access the music downloaded from iTunes so I'm not sure what the issue is here.
@NonZealot

Hmmm... Windows users can download music from iTunes regardless of whether they have a iPod/iPhone/iPad. You may have to go to a third party utilty to convert the AAC files to use on your device but that's your issue. At least, iTunes allows you to download non-DRMed files that can be used in that way.

If you are using Linux, a bit more pain but WINE will allow you to run iTunes -- at least the last time I tried it which was a couple of years back. Other utilities such as Songbird which I later used to manage the music copied from my iTunes library also work well with the caveats you need non-DRMed music and a Windows/Mac to use iTunes on.
@DNSB
You may have some copyright issues, converting from one format to another. You may want to check before advising this!
@windozefreak

What copyright issues are you thinking of? Downgrading from AAC to MP3 is no more illegal than ripping your CDs for your personal use.
@NonZealot

I would rather be forced to use iTMS than knowlingly let Google accumulate more data on my life. And, if you think that Google is so secure, just look at what happened with the WikiLeaks releases.

All it takes is one disgruntled employee and all the data that Google has stored on all of you will be out in the open.
I know a lot of articles were written about it and how it HAD to negatively effect Apple but the data during and since said seem to contradict that assumption. As for the White iPHone 4 it has been a while since it was announced to be sure but might that not indicate that Apple is so busy making iPhone 4 that it can't keep up with demand and spare the internals or parts to place in another color model at this point and that is good news? I agree that other carriers would be cool for the iPhone, but again if Apple can't make enough to fill demand now what sense would that make to increase said?

Pagan jim
@James Quinn
AntennaGate was just a bad rumor that the competitors perpetuated. The highest customer satisfaction among many surveys I've read, is among all Apple products. The iPhone 4 is so hot that guess what: no cybermonday deals on that product. I'm a convert from Microsoft so I can appreciate how and why Apple users rate their products so highly.
http://www.businessissuestoday.blogspot.com
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Of course it's just a rumor
John Zern 29th Nov 2010
It's not like Steve Jobs got on stage and told everyone to hold it a certain way or anything.
I really don't buy Apple products, opting for longer lasting less expensive models from competitors, but that's just me.
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@John Zern
There simply was no flood of returns even after Apple offered to take them back with NO restocking fees or any fee's what so ever the return rate was below that of the iPhone 3GS which had no such problem. So hmmmmmm?

Pagan jim
@John Zern

For someone who doesn't buy Apple products, you sure spend a lot of time spouting your uninformed opinions about them.
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@Zern
frgough 29th Nov 2010
Yeah, instead of putting it on a sticker and slapping it on the phone like Motorola does, Jobs had the audacity to actually tell you verbally. The cad!
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@John Zern
Bruizer 29th Nov 2010
"I really don't buy Apple products, opting for longer lasting less expensive models from competitors, but that's just me."

Then you really should by into Macs. Most people I know with Macs upgrade on a 3-5 year cycle and my PC friends are on a 2-3 year cycle.
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Because, msalzberg
John Zern Updated - 29th Nov 2010
I have to spend a lot of time dealing with them, too.
Unlike the avaerage consumer who owns an iPhone and PC, or a Mac and iPod, I have to deal with issues all the times.

I run our division's IT. I see broken Macs and crashing OS X (as well as Windows/PC's) as I'm the first person everybody calls when there's an issue. I've seen the inside of them all, and for all the same reasons.

I also interact with IT at the locations we service, and I hear pretty much the same thing: pros, cons, and issues with all three platforms (Linux), so sure I take exception when someone questions me why I chose what I did, since the iPod is a superior MP3 player. I have to ask why my wife doesn't have to reboot her ZuneHD, while my niece and sister law both rebooted their iPod touches on numerous occasions when we've been all together?

I'm saying that a PC with Windows7 does fine for me, and cost me less then a Mac, but yet you get the Richard Fluids of the world telling me that can't be true.

The Genius Bar exists at the Apple store for a reason, funny it's needed for something that has no issues, as it "just works".
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Because msalzberg
John Zern 29th Nov 2010
I have to spend a lot of time dealing with them, too.
Unlike the average consumer who owns an iPhone and PC, or a Mac and iPod, I have to deal with issues all the times.

I run our division's IT. I see broken Macs and crashing OS X (as well as Windows/PC's) as I'm the first person everybody calls when there's an issue. I've seen the inside of them all, and for all the same reasons.

I also interact with IT at the locations we service, and I hear pretty much the same thing: pros, cons, and issues with all three platforms (Linux), so sure I take exception when someone questions me why I chose what I did, since the iPod is a superior MP3 player. I have to ask why my wife doesn't have to reboot her ZuneHD, while my niece and sister law both rebooted their iPod touches on numerous occasions when we've been all together?

I'm saying that a PC with Windows7 does fine for me, and cost me less then a Mac, but yet you get the Richard Fluids of the world telling me that can't be true, that I must be for some reason "being untruthfull", or that a bad experience with an Apple product "can't be true".

The Genius Bar exists at the Apple store for a reason, funny it's needed for something that has no issues, as it "just works", so yes, I can speak on Apple products.

If people want to point out all the positives with Apple' products while posting the negative with Microsoft's, don't get upset when it goes the other way, as we know for a fact that it does happen that way, too
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@audreypeters Actually Antennagate is/ was a real issue - it was overblown by the tech media and the ABMers... But even with that and a few other small issues the iPhone 4 has a return rate of 3% because 3% of the buyers found it to be unsatisfactory which is also telling me that 97% of the people who bought the iPhone 4 are quite satisfied with it. Despite the few issues and criticisms from the tech media and Apple haters the iPhone is a great device.
@James Quinn

The iPhone is looking old and clunky. Really, look at the photo above and tell me that UI doesn't look old. I've had that crowded desktop look for years. For all the talk about iOS being a phone OS, it's really just a cut down OS from last century. Use a WP7 phone and you'll see the difference, WP7 is elegant, iOS was a nice design jump over Windows Mobile (although it seriously lacked functionality) and now MS has gone ahead and made a better phone OS and UI. I fully expect Android to follow suit soon, while Apple stays with its dated icons.

So what will change people over to WP7 from their iPhones? Using one or seeing one their friends have. You only have to use one for a few minutes to see the benefits. You can also choose carrier and form factor.

Of course Apple may leapfrog again or Android, but at the moment they seriously feel old and out of date.
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@tonymcs@...
the iPhone 4 and still not making enough:) I've seen a few commercials about the Windows phone 7 UI and what I've seen so far is kind of ugly it shows this image of a mixture of clunky blue squares with a mixture of other images which I assume are alternative icons but the mix is just plain ugly to my eye. Nor sure what you are saying about the UI other wise.

Pagan jim
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@tonymcs@...
The used car sales man.
No ones buying the sales pitch.
@tonymcs@...

While WP7 actually looks like MS did a decent job, your other fantasies about WinMo have been laughable in the past. WP7 is pretty good (having used one for well more than a few minutes) but I don't see it winning anyone over from the iPhone. Android? I have already seen that at work. The form factor of all WP7 (and for that sake Android) phones are pretty much the same; a clone of the old tired iPhone.

BTW: has Apple been able to pass 20,000,000 iPhones/year like you said they could not do?
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Of course James Quinn, I am by no means
Mister Spock 29th Nov 2010
surprised that you find the UI "ugly" on the Windows Phone, though I would imagine you find the iPhone UI "perfect".

plain
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Perfect no.. Better yes.
James Quinn 29th Nov 2010
Mister Spock
That is why I usually choose Apple products.. I find them better. Now NOTHING and no one is perfect with the possible exception of me.

Pagan jim
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@tonymcs@... HAHAHAHAHAHA!!! I needed that laugh...

A device that they can't make enough of, one with a 97% satisfaction rate is "old and out of date"... really? LOL
@tonymcs@... Seen a lot of ads and over the top product placement in shows for WP7 and to me it look more like a kids puzzle than a quality device and I prefer iOS. The thing is that is my opinion and just as it doesn't apply to you, your opinion doesn't necessarily apply to anybody else either. I will try a WP7 phone out just to see how it is and maybe it could win me over but not based on what I have seen at this point. Everyone has different needs/wants and having competition is a win for all of us no matter what OS we prefer.
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the feeding frenzy of yellow journalists and their kangaroo court full press reporting on it.
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RE: Survey says few smartphone owners are loyal to brands
ItsTheBottomLine Updated - 29th Nov 2010
Exactly what I have seen to write off WP7,the latest Android, RIM etc. - is a big mistake.
I think Apple products will be the exception here. The fanbois and fangurls just got to have their hyped products. Possible there will be as much loyaly for RIM as only RIM makes smartphones with the BlackBerry OS.

As far as Windows and Android phones, purchasers can choose their favorite OS on a variety of smartphones from different manufacturers.
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@Gis Bun

The difference is the close integrated solutions are providing a better experience to their respective users.
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@Gis Bun Of course they have to have their hyped products when the hype is lived up to by the product... Again the iphone 4 has a 3% return rate - 3% - which is less of a return rate than the previous iPhone model despite the overblown Antennagate issue... 3% return rate because those people were unsatisfied with it. So that figure also presumes a 97% satisfaction rate with the iPhone 4. Not too shabby for a hyped device. Oh and BTW did you know that many of those who bought the iPhone were former WM users and some of them - myself included - use Windows as opposed to OSX? Sure, Apple does have it's rabid fanbase but pigeonholing all of those who bought the iPhone as fanbois/ fangurls shows sloppy thinking on your part.
Me? Loyal first to my carrier (Sprint). Loyal second to reliability in key apps (Calendar, E-Mail, Web, in that order). Loyal third to experiences (Palm=Good until Pre, BlackBerry=Bad on FIVE different models). All that may change if I land on an Android phone which meets all the reliability and usability requirements; I might well become an Android fan.

Still has to work on Sprint, though. No carrier yet has offered a deal that beats Sprint's. And customer sat here is A+.
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"Good enough" doesn't promote loyalty
Get-Smart Updated - 30th Nov 2010
The low loyalty numbers are because the manufacturers only give a "good enough" experience, rather than usability that works well all the time, every time. This is where Apple has the edge: UI and marketing give their consumers more of a warm and fuzzy feeling than Android or Windows Mobile does. Reliability and ease-of-use are the two key components here.

Example: I just "traded up" from a Droid to a Droid 2. Motorola removed (more accurately, didn't include) critical phone functionality that was recently fixed in stock Android OS, but left out of Motorola's customized OS for the new models.

Screw the customer = lose loyalty. The math adds up for me.
I recently bought an Android phone. I also recently bought an iPod Touch 4. Why both? Well, the Android phone is the Samsung Intercept and I wanted the hacking potential of the OS. I also dislike AT&T a lot. The iPod I wanted because I like iTunes and the apps available for iOS.

I used to own an iMac (late 2006 model) and it was flaky. The DVD-ROM quit reading DVD's and the video card had issues. I paid over $1300 for this thing. Well, it got stolen along with an iPod "classic" 5G, laptop and few other choice electronics. This time I couldn't see myself paying the $$$ for a new iMac, so I spent ~$750 and built a Windows 7 gaming system.

Am I loyal to Apple? Naw, not that much. I like their music store and their iPod Touch 4. I really don't think I'm going to be jailbreaking it anytime soon. Am I loyal to Android? Maybe. So far the new hasn't gone away from my phone and I'm still playing with it. I finally got Windows 7 to detect it properly and got the thing rooted. I might even start developing apps for it. Would I use a WM7 phone? I don't know. Wake me when there's one on a prepaid plan with all-you-can-eat data, voice, and web.

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