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Apple tops the smartphone industry in brand retention


New research data compiled by Morgan Stanley Research (and relayed by Business Insider) reveals that when it comes to brand retention in the smartphone industry, Apple remains the top dog. On average, Morgan Stanley found that 90% of iPhone owners remain loyal to Apple as compared to 77% for Samsung and 58% for Nokia.

The following chart exemplifies why analysts who put all of their eggs in the marketshare basket often make laughable predictions about Apple's prospects in the smartphone market. While marketshare data -- which by itself is prone to manipulation -- tells us how the smartphone market looks today, brand retention is an important metric in assessing what marketshare data may look like in the future.

It's hard to take an analyst who is so quick to claim that the iPhone has peaked seriously. Not only does Apple have a proven track record of innovating and attracting new customers, its ability to keep existing customers within the Apple ecosystem outpaces its competitors.

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