Analyst: App Store driving iPhone customer loyalty
updated 06:55 pm EST, Tue February 10, 2009
App Store customer loyalty
Barclays' analyst Ben Reitzes has suggested that Apple can rely on the success of the App Store to add "stickiness" to the iPhone and iPod touch. He uses the term in reference to the lock-in effect that is likely to prevent the majority of current owners from switching to products offered by competitors, a concept he believes is a "key differentiating factor."
“This software strategy enables a distinctive “stickiness” for the iPhone, which should enhance customer loyalty over the long-term," Reitzes explains. "We believe ‘apps’ personalize iPhones to levels that competitors cannot match." The App Store is also credited with expanding sales of the iPod touch.
AAPL stock surpassed $100 this week, following a number of analyst reports that provided a brighter outlook for the company. Apple last month released its quarterly financial disclosure, posting record revenues exceeding $10 billion while other tech industry giants have reported losses and thousands of layoffs. [via Fortune
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Joined: Aug 2001
definition
You could define that as 'loyalty' or just the 'I've already paid for these apps, if I want to switch I have to buy them again? Forget it" factor. You know, the one that keeps many people on windows.