More Customers Opt for iPhone 5 than Legacy Models

Apple's iPhone 5

Apple’s iPhone 5 | Apple Official Website

A new survey conducted by Morgan Stanley and AlphaWise revealed that more buyers this year are opting to purchase the iPhone 5. This suggests that more customers are willing to pay for the best device available in the market.

Paying for Apple’s iPhone: Now and Then

Based on the survey conducted to over 1,000 US smartphone buyers, 86 percent of respondents who are planning to buy an iPhone this year would choose the iPhone 5. As of the moment, Apple’s latest handset is priced at $199 with a two-year service contract.

What’s interesting about this is that the same poll last year revealed that 82 percent of customers are willing to pay for the iPhone 4S. During those times, the legacy model was sold at the same price as iPhone 5.

This year’s survey also shows that 10 percent of iPhone buyers would choose the iPhone 4S, which sells for $99 with a two-year contract. Meanwhile, 4 percent of the consumers are eyeing iPhone 4 that is available for free with a contract.

In the same poll last year, 15 percent respondents said that they would choose iPhone 4, which was then sold for $99. On the other hand, 3 percent of those surveyed opted for iPhone 3GS, which was last year’s free-on-contract model from Apple.

As pointed out by Analyst Katy Huberty, the improvement in customers wanting to buy the latest model could be attributed to the fact that the iPhone 5 is major improvement from its predecessor. This year’s model has a redesigned exterior, larger 4-inch display, as well as high-speed 4G LTE connectivity.

Apple vs. Samsung: The Battle of Customer Retention

Aside from the customer’s preference, Morgan Stanley and AlphaWise’s survey reveals that Apple leads the smartphone industry when it comes to customer retention. Among those surveyed; 83 percent of iPhone users said that they intend to buy another iPhone. This is a 10-point increase from the same poll a year ago.

Apple’s ranking is also well ahead of Samsung, which has a 63 percent customer retention rate. However, the South Korean tech giant also saw a significant increase when it comes to customer preference, surging 26 points from the 37 percent retention rate based on last year’s survey.

The poll also revealed that 64 percent of iPhone buyers in the US had previously owned an iPhone. That is a 23 points increase from the previous poll’s 41 percent.

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