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77 percent of iPhone 4 buyers are iPhone upgraders

Written by Andre Yoskowitz (Google+) @ 25 Jun 2010 17:14 User comments (6)

77 percent of iPhone 4 buyers are iPhone upgraders According to a survey conducted by Piper Jaffray analyst Gene Munster, 77 percent of customers who were buying an iPhone 4 on launch day were past iPhone upgraders, moving from a 3G or 3GS model.
By comparison, in 2008, only 38 percent were upgraders and in 2009, 56 percent were upgraders.

Says Munster: "Apple is effectively building a recurring revenue stream, where iPhone users pay on average $200 USD a year to stay current with the latest phone."

Continuing, Munster says: "While its true that iPhone 4 is a more significant feature upgrade compared to the 3GS, and we expect this upgrade rate to decline next year, Apple has in three years built brand loyalty in the phone market that compels users to upgrade to the latest version and wait in line for one to six hours to pick up their iPhone.

The analyst says that 16 percent of iPhone 4 buyers switched to AT&T from other carriers just to get the new device, falling from 28 percent in 2009, implying that Apple needs to add the device to a second carrier in the U.S or face saturation on that front.

Munster concludes that Apple will sell over 1 million iPhone 4 units, including pre-orders in the phone's first 72 hours of availability.

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6 user comments

125.6.2010 22:18

Lol, why am I not surprised it's that high...I imagined it would of been at least 90%.

225.6.2010 22:59

I wonder what the switch-over numbers on android are; I many android buyers are coming from an old android vs another kind of phone.

This article does make sense though; the only way someone would have an iPhone4 at this date is if they are an obsessive apple fan; and obsessive apple fans have a pile of old iPhones.

326.6.2010 2:09

doofs..gotta wait till the thing gets jailbroken

426.6.2010 20:55

And 90% of that 77% are Icultists!

527.6.2010 10:39

You have to imagine how massive the iPhone 4 sales would be if Apple actually opened it up to other carriers. I know a lot of people who want one (myself included) but refuse to switch over to AT&T and their expensive plans.

628.6.2010 16:05

Apparently iphone4 is already jail broken as of yesterday.

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