Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Mobile Phones

 

Can The Galaxy S5 Release Realign Samsung Owners' Loyalty?

Feb 6 2014, 5:36pm CST | by

3 Updates
Can The Galaxy S5 Release Realign Samsung Owners' Loyalty?
 
 

YouTube Videos Comments

Recommend Your Tweet as Top Tweet:

Full Story

Can The Galaxy S5 Release Realign Samsung Owners' Loyalty?

As we await the announcement of the latest and greatest from Samsungthe 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. 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.


However, while the loyalty risk is greater for Samsung, Apple has more at stake financially in its efforts to entice current customers to repurchase. Given the higher percentage of Apple iPhone ownership among U.S. adults (the aforementioned 43.7% versus 25.7% ownership for Samsung), Apple has more to lose in terms of sheer number of customers, therefore smartphones – and of course, dollars. Although the Cupertino-based giant boasts an 81.4% “consideration loyalty,” according to our calculations of percentage ownership, plans to buy, and the average price of smartphones, the 18.6% of current Apple customers NOT considering an Apple smartphone repurchase puts an estimated $160 to $630 million at risk for Apple in terms of potential revenue over the next six months.

While the estimated lost opportunity for Samsung is less than Apple, there is a substantial sum at stake in this scenario as well; the 28.7% of current Samsung owners NOT considering a Samsung for their next phones represents a potential $135 to $540 million in revenues up for grabs for competitors.

If that reported Galaxy S5 lives up to the hype, Samsung will likely see a strong conversion of consideration loyalty to repurchase loyalty – and perhaps convince some shoppers to reconsider Samsung as a smartphone option. The challenge for Samsung, Apple, and others will be to effectively reach and speak to potential buyers to incite a purchase, minimizing those million dollar opportunities lost to competitors.

We’ll see what the next quarter brings.

Connect with me on Twitter: @PJGoodfellow . Check out this month’s Consumer Snapshot and discover more: Prosper Insights & Analytics™ .

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update

Update: 3

Ad of the Day: Samsung Slams iPhone Battery, but Are These Ads Losing Their Charge?

Source: AdWeek

Landon Donovan Samsung Galaxy 11 Media Day
Battery life is the burning issue in "Wall Huggers," the latest installment in 72andSunny's "The Next Big Thing Is Here" campaign for Samsung. The minute-long spot shows frazzled, unhappy iPhone-carrying travelers sitting on airport floors, hunched around wall outlets, waiting for their handsets to charge. They should've bought the Samsung Galaxy S5 with ultra power-savi ...
Source: AdWeek   Full article at: AdWeek 3 days ago, 9:09am CDT
 


Advertisement


Update: 2

Can the Samsung F beat the Apple iPhone at its own game?

Source: BGR.in

The company appears to be getting ready to launch a new phone called the Samsung F that looks designed to compete with the next iPhone in terms of design and build quality as well as features and specifications. Expected to launch on September 12, the handset is set to see Samsung dump plastics in favor of a brushed metal casing which will wrap around a QHD display. According to @evleaks, as well as a premium exterior, the phone will also get the latest Qualcom ...
Source: BGR.in   Full article at: BGR.in Jul 3 2014, 7:48am CDT
 

More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Emma Watson takes a Rebel Yell Tack on High Fashion
Emma Watson takes a Rebel Yell Tack on High Fashion
The Harry Potter princess has taken a rebel yell tack on high fashion. Emma Watson is getting chic beyond her years.
 
 
Katie Holmes Buying $4 Million Apartment for Suri Cruise
Katie Holmes Buying $4 Million Apartment for Suri Cruise
Tom Cruise's ex-wife Katie Holmes is reportedly buying an apartment in NYC worth $4 million so she could provide a more family-friendly neighborhood for her daughter Suri Cruise.
 
 
Mike Tomlin on the Choices he has in the Field
Mike Tomlin on the Choices he has in the Field
Mike Tomlin recently spoke on the choices he has in the field.
 
 
Cory Monteith Death Anniversary Arrives with Another Glee Death
Cory Monteith Death Anniversary Arrives with Another Glee Death
The star Cory Monteith who died a year ago has his death anniversary coming up soon. However, it arrives at the time of another death of Glee star's Becca Tobin's boyfriend, who was found dead in Philadelphia.