Thursday, February 6, 2014

Can The Galaxy S5 Release Realign Samsung Owners' Loyalty?

As we await the announcement of the latest and greatest from Samsung – the suspected Galaxy S5 – later this month, I thought it would be interesting to take a look at continued battle between this smartphone giant and that other giant, Apple AAPL -0.02%. While Samsung’s global market share remains intact, according to our latest insights, Apple is the dominant player in the smartphone market stateside, with 43.7% of U.S. adults 18+ owning one, with Samsung resting in second position (25.7%). Combined, these two Goliaths account for more than two-thirds of U.S. smartphone ownership among adults, ahead of smaller players like Motorola (7.5%), LG (7.0%), HTC (6.6%) and BlackBerry (3.0%).
What’s interesting about these two big competitors, though, is the loyalty between the two brands when shopping for a new smartphone model – and how much this loyalty is worth. Among current Apple owners planning to purchase a new smartphone in the next six months, more than four out of five (81.4%) are eyeing Apple again. However, flip the scenario to current Samsung smartphone owners considering a new phone in the next six months, and just seven out of 10 (71.3%) are looking at Samsung models. So Samsung owners have less “consideration loyalty,” if you will.
We continue to build the case for Samsung owners’ wavering loyalty when evaluating their propensity toward considering brands beyond Samsung and Apple. Compared their Apple-wielding counterparts, Samsung owners are much more likely to consider the HTC One, Motorola Moto X or DROID as well as Nokia Lumia smartphones.

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