Reports Claim That The Stickiness Of The Apple Ecosystem Prevents Users From Purchasing Other Phones

According to a recent report from Counterpoint, the worldwide smartphone industry shrank by 14% year over year in the first quarter of 2023. Along with that, Apple reported that its iPhone segment alone generated over $51 billion in revenue in the second quarter of its fiscal 2023 year.

IDC and Canalys made similar statements about the smartphone market situation in their reports. However, Samsung is in the lead in the battle for market share in Q1 2023, trailing Apple by only an inch. According to Counterpoint, the reason is the Galaxy S23 series and the mid-range A series device from the South Korean firm. According to the survey, Apple experienced the least amount of shipment drop among the top five brands and scored its highest-ever Q1 share of 21%.

Overview of smartphone market Q1 2023

Having said that, Apple has also amassed about 50% of the total revenue share, surpassing Samsung, Xiaomi, Oppo, and Vivo in the process. According to Counterpoint research director Jeff Fieldhack, “the stickiness of its ecosystem prevents its customers from choosing a cheaper smartphone even in times of economic difficulty,” as one of the reasons for Apple’s success.

Here, the term “brand stickiness” or “customer stickiness” is used in marketing to describe the possibility that a customer would “stick” to a brand by making further purchases. It differs from customer loyalty, which places a greater emphasis on the relational and emotional value that consumers derive from a brand.

According to a previous study, Apple Watches are owned by about 80% of iPhone users who have smartwatches. 71% of Pixel users who also own a Pixel Watch and 40% of Samsung users who also own a Galaxy Watch were Apple’s closest competitors.

Apple has successfully lured users “who are willing to spend more for longer-lasting devices,” Fieldhack continued, as sustainability has become a top concern for many. Concerning that, it was recently revealed that Apple controlled close to half of the world’s market for refurbished smartphones. Additionally, the business has successfully established itself as a favored brand among Gen Z consumers in the West, “thereby positioning itself for sustained success.”

Apple’s increased sales have mitigated the pandemic-related manufacturing problems Apple encountered with the iPhone 14 last year. Devices including the iPhone, iPad, Apple Watch, AirPods, and Mac desktops make up its ecosystem. These devices can connect to the same set of internet services, such as iCloud, which allows for online device backups and data syncing between devices. There are also Continuity features such as Handoff, Continuity Camera, AirDrop, auto unlock Mac using Apple Watch, etc.

More recently, Apple One, a single subscription that combines iCloud storage with other services like Apple Music, Apple TV+, and gaming service Apple Arcade, has entered the market. In addition, the company disclosed during its Q2 earnings call that its services division generated $20.9 billion in sales in the March quarter and had 975 million paid subscribers.

I'm a Computer Graduate. I've been working as a content writer at since October 2021. I love to plan, write and edit web content, typically to resolve customer queries. As my passion aligns with our site's vision, I'm trying to provide quality content with all the latest information to answer your questions and clear up your confusion through this platform.

Leave a Comment