Tablets
As I prefaced previously, there isn’t a huge difference these days between an e-reader and a tablet, so it shouldn’t come as much of a surprise that Amazon.com, Inc. (NASDAQ:AMZN) took the cake here in brand loyalty. It’s a bit disconcerting that the inventor of the tablet, Apple Inc. (NASDAQ:AAPL), only managed to take the No. 2 spot, but Amazon’s functional Kindle Fire that dramatically undercuts Apple on price could be a key reason it takes the top honor.
What’s the takeaway?
Now that we’ve had a closer look at which companies took this year’s top honors according to the Brand Keys survey, let’s examine what common themes exist among these consumer electronics that might help us recognize the next big winner.
To begin with, innovation is everything. Apple Inc. (NASDAQ:AAPL) has been the king of innovators for years, but it hasn’t truly changed the game since it introduced the iPad a few years ago. In the smartphone sector, Research In Motion Ltd (NASDAQ:BBRY) has been even worse. It took countless delays and nearly two years to introduce its new Research In Motion Ltd (NASDAQ:BBRY) Q10 and Z10, which run on its own proprietary operating system. Thus far, reaction to the new smartphones has been lukewarm at best, as Research In Motion Ltd (NASDAQ:BBRY) brought up the caboose in terms of smartphone brand loyalty.
Secondly, design matters. Millennials are caring more and more about their own image and the design of the products they use, so functionality needs to extend far beyond just what the product can do and into the actual styling of the device. Samsung’s thin and sleek TV designs and Apple’s lightweight and colorful laptops are prime examples of hitting on this point.
Finally, price is important, but it’s also not a breaking point if the higher-priced product can deliver added value to the consumer. Amazon.com, Inc. (NASDAQ:AMZN)’s Kindle Fire, for instance, generates top-tier tablet loyalty because it’s both a cheaper alternative to the iPad and possesses a strong brand name. However, in laptops, Apple Inc. (NASDAQ:AAPL) and Samsung offer arguably the most expensive price points, but are generally regarded as the leading brands in terms of functionality and status. In contrast, Dell Inc. (NASDAQ:DELL) ranked dead last in laptops despite its cheaper price point, as its laptops are losing their brand identity and have failed to keep up with Samsung or Apple in design freshness.
The article These Tech Companies Have the Most Loyal Customers originally appeared on Fool.com.
Fool contributor Sean Williams owns shares of Dell Inc. (NASDAQ:DELL), but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Amazon.com, Apple, and Google Inc (NASDAQ:GOOG).
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