Apple Inc. – Big-Time Interest In Bigger iPhone 6

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Apple Inc. – Big-Time Interest In Bigger iPhone 6

Consumers are ready and waiting for Apple Inc. (NASDAQ:AAPL) to launch a bigger iPhone this year. Raymond James analysts did a smartphone survey earlier this month and have released their findings. They say Apple still enjoys strong loyalty among users and, as another recent survey found, that the iPhone 6 might steal a little bit of the market share from Android.

Play Quizzes 4

Apple fans remain loyal

In a report dated June 25, 2014, analysts Tavis McCourt and Daniel Toomey shared the results of their U.S. smartphone survey. They found a slight increase in iPhone ownership year over year. This year 51.3% of those they surveyed own an iPhone, and last year, 50.2% did.

The analysts also found that those who expect to buy an iPhone as their next smartphone was about flat year over year at 54.7%, compared to 55% last year. It’s slightly higher than the 49.7% who said in March that they were planning to buy an iPhone for their next smartphone.

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In terms of retention, they said Both Apple and Android enjoy more than 80% retention rates. Apple’s retention rate is a commanding 91.4%, however, while Android’s is only 82%. They also noted that as has been the case for a long time, iPhone users are more likely to upgrade soon, with 48.4% of them saying they’re likely to upgrade, compared to just 37.1% of Android users.

Demand for a bigger iPhone remains high

McCourt and Toomey said they think that a larger iPhone will bump up Apple’s share of the smartphone market a bit, and their survey indeed seems to back up this theory. They say 13.7% of Android users are planning to switch to an iPhone, while just 7.4% plan to switch from an iPhone to an Android phone.

They also found that 21% of all smartphone owners who participated in their survey would pay $100 extra for a bigger iPhone. That’s consistent with the results for this question in the last two surveys they did. They expect that the iPhone 6 will come in a 4.7-inch and a 5.5-inch model but that only the 5.5-inch model will cost $100 extra.

The analysts report that a third of current iPhone owners are willing to pay an extra $100 for a bigger iPhone, which they say suggests that there’s a lot of pent-up demand for the larger iPhone 6 models that are expected this year.

Apple iWatch, iTV interest is only niche

The Raymond James team also looked into possible demand for Apple’s rumored iWatch and iTV. They say broad interest in an Apple-branded smart watch was 10%, while interest among iPhone users was slightly higher at 13.5%. Interest in an Apple-branded smart TV was better, with broad interest at 25%. All of these percentages were a bit lower than they were in their previous surveys. They summed up all of their findings about purchase intentions for Apple products and products made by its competitors in this graph:

Apple iPhone 6 Demand

The analysts note that Apple would have some work to do in order to convince consumers that they need its new products, although the company has been good at this. They say that even these small percentages can result in some “pretty big numbers,” as there are now more than 300 million iPhone users around the globe.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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1 COMMENT

  1. If these stats are true, it’s proof that people are getting stupider. iOS8 will be bringing some great features to Apple users, and get them even closer to the functional level that Android users have been enjoying since Gingerbread (released in 2010). At a premium price, ofcourse.
    But hey: bragging rights of owning an Apple product for them, I guess (although I wouldn’t brag and confirm to people that I’m stupid).
    If these stats hold true, though (again), could be a boost to my portfolio, which holds AAPL, so no complaints there. I do have my finger on the trigger to sell, though, at the first sign of people wisening up and losing interest in Apple’s products (which the “flat” comments above seem to be hinting may be just around the corner)

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