Despite Apple’s apparent downshift from a growth stock to a value stock in the recent few months, the level of customer loyalty that iOS enjoys from its users, is basically what drives increasing value to the company. According to a recent article by AllThingsD, iOS is sticky, and it’s stickiness is what makes it tough for Apple users to shift to another mobile platform.
According to Deutsche Bank analyst Chris Whitmore, iOS users have cumulatively spent around $54 billion on content and apps since the launch of iTunes store. This means that iOS users have made “significant financial investments” in Apple’s mobile ecosystem, enough to make them think twice about switching to any other platform. The analyst claims that a typical iOS device owner has spent atleast $130 on apps.
“Many are questioning the loyalty of users to the iOS platform and whether in an era of increasing competition Apple owners will remain loyal to the platform or consider alternative devices (e.g. 5” Samsungs, etc),” Whitmore explains. “We think most iOS users will remain loyal, and the reasoning is primarily economic.”
Says Whitmore, “Many Apple families have multiple devices with content shared across the various form factors, so the money invested per Apple household is likely much higher in multi-iOS device families. Nevertheless, the point is the same; iOS users have made a significant investment in time and dollars into the iOS platform and as a consequence the switching costs are remarkably high.”
Do you think your investment in the iTunes ecosystem is what’s keeping you from choosing another platform?