Apple, a brand known for technology and reliability, is the top preference of the customer despite Samsung’s dramatic growth and dominating shipment volume. Though Samsung has an incredible market reputation and the highest market share among all smartphone companies, it still is not around Apple on the parameters that matter most.
Apple goes far beyond profits
Even though Samsung is a market leader in terms of customer base, if we talk about profits, Apple is far ahead of its South Korean rival. According to Canaccord Genuity analyst Michael Walkley, Apple accounts for over 90% of the smartphone industry’s profits, while the Korean firm is left with less than 10%.
RBC Capital Markets analysts believe Apple’s advantage reaches far beyond profits. Apple continues to hold a huge lead over Samsung in two of the most important areas, says a survey conducted by RBC and released on Monday morning. More than 6,000 users participated in the survey, which was about brand loyalty and smartphone purchase intent. Apple’s iPhone secures the highest position in these two key areas.
On brand loyalty, of the total respondents more than 83% of iPhone consumers decided to support Apple, while 64% of current Samsung users are planning to buy their next phone from the same brand. The survey also found that approximately 10% of Samsung phone consumers are planning to switch to an iPhone, while only 4% began to switch to a Samsung. Also 13% of Apple customers are undecided or planning other options, compared to 26% for the Korean firm.
Well ahead of Samsung
The RBC survey report and other similar studies reveal the hardcore truth that the iPhone ranks high on user satisfaction as it always takes customer needs into consideration. What’s interesting to note is that Apple’s iPhone secured the top position even on Samsung’s own turf of South Korea, says a market research report by Seoul-based firm Consumer Insights.
Also when it comes to purchase intent, Apple has an edge over Samsung with 47% of 6,000 respondents planning to buy an iPhone, while 23% said a Samsung phone would be their next smartphone purchase.
“Outside of Apple, Samsung was the second most common Smartphone brand and had enough data to compare to Apple owners,” reported RBC analyst Amit Daryanani in a note to investors.
On Monday, Apple shares were down 1.75% to $124.53, and year to date the stock is up by over 10%.