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21% of iOS users say they wouldn't leave Apple at any price

post #1 of 149
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iPhone and iPad users are so loyal to Apple and unlikely to switch to another platform that one analyst has pegged their total collective value at nearly $295 billion.

Bill Shope with Goldman Sachs said in a note to investors on Friday that he believes the average single iOS customer is worth $1,053. That assumes the average selling price of an iOS device for the June quarter is $535 with 5 percent erosion, gross margin is 45 percent, and annual defections are 5 percent.

"This implies a cumulative iOS customer value of nearly $295 billion on today's installed base, without any consideration for the content, services or peripherals streams, or for the platform's growth potential," Shope wrote.

At a value of $295 billion, iOS customers represent about 55 percent of Apple's current market cap. That's before including the company's $110 billion cash balance, an iOS install base that continues to grow at a tremendous pace, or the value of the company's Mac and iPod businesses.

Goldman Sachs recently conducted a consumer survey of over 1,000 respondents, in an effort to better understand the costs that customers face when they switch platforms.

Goldman


The survey found that 21 percent of respondents said no discount, regardless of the amount, would make it worthwhile to leave Apple's platform. Among those who said they would consider switching, more than half of those said they would need a discount greater than 30 percent.

Among those polled, 71 percent said they are "highly likely" to choose an Apple device for their next tablet or smartphone purchase. Another 23 percent are "likely" to stick with Apple's ecosystem, while only 1 percent were "unlikely" to stick with Apple.

Goldman


Switching costs for customers only grow when they own more than one device in the Apple ecosystem, and the new iCloud service adds yet another layer to the switching costs, Shope said. Among those polled by Goldman Sachs, 30 percent said they are paying for extra storage capacity or iTunes Match with iCloud.

"Considering that apple has disclosed that it has 120 million iCloud users as of its earnings release on April 24, this is quickly becoming yet another high-margin revenue stream for the company," Shope said. "More important, however, this also suggests that a large portion of Apple's installed base is adding yet another source of explicit switching costs."

In all, he estimates that the switching cost per iOS user ranges between $122 and $301. That implies the average user would need a discount of 49 percent to switch to a competing platform.
post #2 of 149
Once you go Mac, you won't go back! :o)
post #3 of 149

The chances that my next laptop will be Apple is 100%.

 

The chances that my next tablet will be Apple is 100%.

 

The chances that my next phone will be Apple is 100%.

 

For any of those to not come true, Apple would have to screw up so badly, we're talking about a fuckup of RIM or NOKIA proportions, and I see that as extremely unlikely. 

post #4 of 149
Quote:
Originally Posted by Apple ][ View Post

The chances that my next laptop will be Apple is 100%.

 

The chances that my next tablet will be Apple is 100%.

 

The chances that my next phone will be Apple is 100%.

 

For any of those to not come true, Apple would have to screw up so badly, we're talking about a fuckup of RIM or NOKIA proportions, and I see that as extremely unlikely. 

Maps...

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post #5 of 149

I found this pretty startling I myself will by products based their performance and quality. If I find another device at a similar price that functions better then I will buy it. Sticking to an inferior product regardless of the brand name is kind of cheating your self. If a superior tablet comes compared to my iPad I will buy it regardless of the company. 

post #6 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

I found this pretty startling I myself will buy products based on their performance and quality. If I find another device at a similar price that functions better then I will buy it. Sticking to an inferior product regardless of the brand name is kind of cheating your self. If a superior tablet comes compared to my iPad I will buy it regardless of the company. 


So you would buy mostly Apple products too, eh? :D

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post #7 of 149

Gives us a new view of the 1 percenters. They are the ones who say they are "unlikely" to buy Apple products, or say their next purchase is going to be a Droid. Gives you a new insight to the posters around here who say they switched from Apple to Droid and love it.

post #8 of 149

Any androids lambasting Apple users for this are being hypocritical.  They would LOVE for Android to have this kind of dedication and loyalty, but are too tightwadded to admit to it.

Apple has created a fantastic all-in-one ecosystem.  Unless there is a huge screwup of biblical proportions, count me as one of the loyal folks as well.

Android users are loyal until the next gee-whiz android device that comes out. 

post #9 of 149

I only buy Apple products.

post #10 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

I found this pretty startling I myself will by products based their performance and quality. If I find another device at a similar price that functions better then I will buy it. Sticking to an inferior product regardless of the brand name is kind of cheating your self. If a superior tablet comes compared to my iPad I will buy it regardless of the company. 

There are other factors to consider:

1. The cost of changing - not only in terms of buying apps all over again, but also things like time spent learning the new system, replacing all the spare chargers that I keep in strategic locations, etc.

2. The unknowable factors. When looking at a new product, it is impossible to know everything you need to know - there are always some uncertainties or questions you forgot to ask. So buying a new device of any type from any manufacturer entails some risk that it will fail to meet expectations. My experience (and obviously a lot of other people based on the above) is that the risk is low with Apple products because they are consistently great products. When buying from other manufacturers, I have been disappointed on many occasions.

3. Experience vs hype. There is a constant stream of hype and noise trying to encourage me to switch away from Apple products, but much of that is pure FUD and often comes from people with very different perspectives or usage patterns. So do I listen to FUD from unknown sources or rely on my own personal experience?

I would consider switching, but the alternative would have to be significantly better than the Apple product to overcome those issues. And I probably wouldn't even consider it until I had obtained a lot of feedback from people who had used the product for an extended time.
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post #11 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

 If a superior tablet comes compared to my iPad I will buy it regardless of the company. 

Well, that's just the thing. There is nothing superior, yet we constantly have to hear about so-called iPad killers for years now, and they all turn out to be duds and flops which quickly get sold away in desperate firesales. It's like the boy who cried wolf. Eventually people choose to simply ignore these lunatics and liars.

 

And it's not just about the hardware, Apple has the eco-system nailed down with a ton of great apps, and that's mighty hard for anybody else to surpass.

 

If people use something and they are very happy with it, they're not going to switch. Most of the people who complain about Apple on the internet are people who couldn't afford the superior Apple device and they somehow have to justify their purchase of a cheap copycat product which leaves much to be desired. 

 

But when it comes to actual Apple owners, people who actually buy and use the devices, the majority of them are happy as pigs in shit.

post #12 of 149
Quote:
Originally Posted by mstone View Post

Maps...

 

Hahaha, too soon!

post #13 of 149

Most of us buy into Apple on quality, ease of use and percieved value for money. That rational applies throughout.

 

If Apple doesn't offer good value then it's a no sale. (eg New Macbook Pro). 

 

Apple live and thrive on the grounds of its customer's perception of Value. Once that is dented or lost, Apple will slip from grace just like any other company and rightly so too.
 

post #14 of 149
Quote:
Originally Posted by Smiles77 View Post


So you would buy mostly Apple products too, eh? :D

 

Phone is a galaxy nexus. I love the larger screen and stock google experience got an iPad last month. My computer is a custom made box with an Asus motherboard, Amd processor (Best performance for you buck) and video card, Western digital hard drive, Cooler master case, with a rosewell power supply. I run unbuto most of the time except for games and netflix, then its windows 7. I give my money to who ever has the superior product when I walk into the store.

post #15 of 149

I would love to see the same survey applied to Android customers, and more specifically Samsung customers, especially those using the latest hardware.

 

Recent reports put iOS app retention rate well ahead of Android, and we know that that customer satisfaction surveys again put Apple far ahead of Android, but I'd be still  interested to see if Google's attempts at an Apple-like ecosystem are starting to gain traction.

post #16 of 149
Everybody has a price. Someone puts 100k in my face, adios Apple.
post #17 of 149

What are the terms of accepting the $100K? Maybe you can invest it and use the profit to buy Apple then return the $100K?

post #18 of 149

I am out and proud as of 2008 - I pretended to be a PC when all along I was a Mac. I actually prefer their "ecosystem" as it makes my life simpler. I have more important things to worry about in daily life than crashes, fragmentation, viruses, hardware failures, gaudy chrome plating, dead batteries, and cracked plastic. I want a durable product that feels good, is beautiful to look at, and "just works". I previously spent my life constantly tinkering, tweaking, upgrading, repairing PCs with Windows. I'm glad to have finally rid myself of all that. Then again, there are people who are extremely loyal to products on the other end of the scale. Just look at the people who repeatedly purchase Sansui brand televisions from the like of Wal-Mart and those who purchase Dodge trucks instead of Ford or Toyota. :)

post #19 of 149
Quote:
Originally Posted by ghostface147 View Post

Everybody has a price. Someone puts 100k in my face, adios Apple.

 

I wouldn't. Maybe for a million, I'd consider other alternatives, but my Macs make me money, I am highly dependent upon them so it would be dumb to get rid of them.

post #20 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

I found this pretty startling I myself will by products based their performance and quality. If I find another device at a similar price that functions better then I will buy it. Sticking to an inferior product regardless of the brand name is kind of cheating your self. If a superior tablet comes compared to my iPad I will buy it regardless of the company. 

 

You're reading something into it that's not there. If you ask somewhere whether they're likely to x again, they're going to tell you based on their experience of x, not their unquestioning loyalty to the suppliers of x. That's what this survey is measuring. If Apple came out with a complete turd next product cycle, people's opinions would change, but that's factored into their assessment. Apple is unlikely to suddenly start doing everything wrong.

post #21 of 149

There was a Business Insider poll done last year that asked Apple and Android users questions about whether they would switch over and what reasons would they switch for. 23.8% of iPhone users said they would never switch, which is close to this result. 59% said they would if they found a phone better than the iPhone in most key areas. For Android users 31% said they would consider an iPhone if it worked better with non-Apple products. A whopping 56% of Android users would never switch to Apple, with the reason being stated "I hate Apple".

 

How pathetic that your decision as to what you buy isn't based on liking one company, but hating another one.

 

http://www.businessinsider.com/smartphone-survey-results-2011-4?op=1

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post #22 of 149
Quote:
Originally Posted by sflocal View Post

Any androids lambasting Apple users for this are being hypocritical.  They would LOVE for Android to have this kind of dedication and loyalty, but are too tightwadded to admit to it.

Apple has created a fantastic all-in-one ecosystem.  Unless there is a huge screwup of biblical proportions, count me as one of the loyal folks as well.

Android users are loyal until the next gee-whiz android device that comes out. 

How is Apple's ecosystem better than Android's?

post #23 of 149
Quote:
Originally Posted by mstone View Post

Maps...

Trivial.

post #24 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

 

Phone is a galaxy nexus. I love the larger screen and stock google experience got an iPad last month. My computer is a custom made box with an Asus motherboard, Amd processor (Best performance for you buck) and video card, Western digital hard drive, Cooler master case, with a rosewell power supply. I run unbuto most of the time except for games and netflix, then its windows 7. I give my money to who ever has the superior product when I walk into the store.

You are quite clearly not the norm or rather, not the average consumer.  You have bought into the sum of the parts is greater than the total [experience], which is totally fine.  It's just like comparing a Mercedes (fill in the blank with whatever high-end automaker) to a Honda Civic.  Yes, you can buy the civic for $18k, pull the motor and replace with a blown Acura twin cam, add better exhaust, Recaros, better stereo, brakes, etc.  Sure, the Civic may give you the performance you want and maybe it's even comparable to the Merc, but it's really not the same and quality wise, it's not even close.  The norm is that for most consumers, they want to pick a phone or computer that does what they want it to do without having to "tweak" it - and they certainly don't go out and build their own box computer.  Does your box play games better than a stock Mac - probably.  But again, for the average consumer, game playing may only be a very small percentage of their usage and they also want the computer (or phone) to do everything else with no complex changes or modifications.  

 

Also, Apple isn't exactly using crap parts or systems.  It's not like they're cheaping out on battery, or screen, or UI.  As has been proven time and again, the so-called faster this or that or higher pixel camera (a great example) doesn't always work better or faster than the comparable Apple product.  So in cases like that, getting the "best" for your money doesn't equate to buying non-Apple.

post #25 of 149
Quote:
Originally Posted by fredaroony View Post

How is Apple's ecosystem better than Android's?

Android has an ecosystem?!

 

LOL.

post #26 of 149
Quote:
Originally Posted by Apple ][ View Post

The chances that my next laptop will be Apple is 100%.

 

The chances that my next tablet will be Apple is 100%.

 

The chances that my next phone will be Apple is 100%.

 

For any of those to not come true, Apple would have to screw up so badly, we're talking about a fuckup of RIM or NOKIA proportions, and I see that as extremely unlikely. 

Ditto! And, to add, my next TV will be an Apple TV, proper. Which with the above completes the "eco-system" for me! :)

 

PS. I won't even consider a Ford automobile bc of their MS affiliation! :)

post #27 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

I found this pretty startling I myself will by products based their performance and quality. If I find another device at a similar price that functions better then I will buy it. Sticking to an inferior product regardless of the brand name is kind of cheating your self. If a superior tablet comes compared to my iPad I will buy it regardless of the company. 

Ugh!

post #28 of 149
Quote:
Originally Posted by anantksundaram View Post

Android has an ecosystem?!

 

LOL.

How doesn't Android have a ecosystem? I see how you decided not to answer the answer, probably because you can't.

post #29 of 149
Quote:
Originally Posted by anantksundaram View Post

Trivial.

Unless they get that public transit scheduling under control it could be a game changer for me. I use the maps feature all the time and the new Apple version does not look so good to me. I don't need turn by turn or 3D fly over ( I have turn by turn in all my cars). I like a lot of detail in both standard and satellite view as well as Street View and Google delivers a nice map solution in my opinion. I also like the map API that allows me to create my own maps with my own points of interest, import kml files and graphical annotations and publish it to the web. Not that the later customization features really affect a mobile device but it is nice to have one integrated platform to work from. I see Apple's abandonment of Google Maps as a net negative for the iOS ecosystem.

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post #30 of 149
"Wouldn't leave Apple at any price" is a bit deceptive, as the article is talking about discounts applied to competing devices. I wouldn't take a free Galaxy S III if I could get my next iPhone for $200 (though I would take a free Nexus 7), but at the same time, I wouldn't pay $1000 for my next iPhone.
post #31 of 149
Quote:
How doesn't Android have a ecosystem? I see how you decided not to answer the answer, probably because you can't.

After consideration of a variety of factors, you appear to have received the most suitable answer to your question.
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post #32 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

 

Phone is a galaxy nexus. I love the larger screen and stock google experience got an iPad last month. My computer is a custom made box with an Asus motherboard, Amd processor (Best performance for you buck) and video card, Western digital hard drive, Cooler master case, with a rosewell power supply. I run unbuto most of the time except for games and netflix, then its windows 7. I give my money to who ever has the superior product when I walk into the store.



Been there done that with DIY rigs.  I just got tired of the rat-race after doing that for over 10+ years that it was time to just buy a turn-key solution.  As fast as my rigs were back in the day, I got tired of them sounding like vacuum machines from all the fans I had in them.

I do have about 3-4 slick cooler-master cases (Preaetorian) including an all-black anodized that I'm looking to unload.  :)

post #33 of 149
Quote:
Originally Posted by mstone View Post

Maps...


Nope, not even that.

I always find it amusing when people peg their loyalty to a specific feature.

Any small number of things can be fixed. Expecting perfection from anything or anyone is a fool's game.

post #34 of 149

Apples Ecosystem is far more immense regarding apps and media content.

 

It`s hardware ecosystem is so simple and really does "Just work" and interact in a manner I`ve not seen anywhere else.

 

I could ditch Apples media/apps ecosystem with little problem, I`d have a hell of a time replacing the hardware ecosystem.

I don't think it could be done as elegantly as Apple does it at the moment.

post #35 of 149
Quote:
Originally Posted by CurtisEMayle View Post

Quote:
How doesn't Android have a ecosystem? I see how you decided not to answer the answer, probably because you can't.
After consideration of a variety of factors, you appear to have received the most suitable answer to your question.

Ahh so you can't answer the question either....

post #36 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

 

Phone is a galaxy nexus. I love the larger screen and stock google experience got an iPad last month. My computer is a custom made box with an Asus motherboard, Amd processor (Best performance for you buck) and video card, Western digital hard drive, Cooler master case, with a rosewell power supply. I run unbuto most of the time except for games and netflix, then its windows 7. I give my money to who ever has the superior product when I walk into the store.


Right. You're REAL typical of 99% of users.

I think Apple should cater just to you. Makes sense.

post #37 of 149
No discount would persuade me to switch platforms... but if they paid me enough money... 1smile.gif

Of course, nobody's going to pay me money to use another platform, so Mac it is.

That or someone creates something better for me.

Quote:
Originally Posted by anantksundaram View Post

Android has an ecosystem?!

LOL.

Android has an ecosystem. It isn't as strong as the Mac ecosystem, and perhaps not even as strong as the Windows ecosystem (unless mobile is the only consideration), but it does have an ecosystem and Google is growing it.
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post #38 of 149
Quote:
Originally Posted by mstone View Post

Unless they get that public transit scheduling under control it could be a game changer for me. I use the maps feature all the time and the new Apple version does not look so good to me. I don't need turn by turn or 3D fly over ( I have turn by turn in all my cars). I like a lot of detail in both standard and satellite view as well as Street View and Google delivers a nice map solution in my opinion. I also like the map API that allows me to create my own maps with my own points of interest, import kml files and graphical annotations and publish it to the web. Not that the later customization features really affect a mobile device but it is nice to have one integrated platform to work from. I see Apple's abandonment of Google Maps as a net negative for the iOS ecosystem.

 

That's because you are a pessimist, and cling to the past based on fear of change.

 

Based on what I've seen to date, from both companies, I feel quite confident in predicting that Apple's maps will quickly be better than anything Google has to offer. Ditching Google Maps as the back end for the Maps app is like getting rid of the floppy drive: we'll all end up glad that they did, and wondering why we ever thought we would miss it. 

post #39 of 149
Quote:
Originally Posted by Apple v. Samsung View Post

 

Phone is a galaxy nexus. I love the larger screen and stock google experience got an iPad last month. My computer is a custom made box with an Asus motherboard, Amd processor (Best performance for you buck) and video card, Western digital hard drive, Cooler master case, with a rosewell power supply. I run unbuto most of the time except for games and netflix, then its windows 7. I give my money to who ever has the superior product when I walk into the store.


Now you are just contradicting yourself.

post #40 of 149
Quote:
Originally Posted by jmgregory1 View Post

You are quite clearly not the norm or rather, not the average consumer.  You have bought into the sum of the parts is greater than the total [experience], which is totally fine.  It's just like comparing a Mercedes (fill in the blank with whatever high-end automaker) to a Honda Civic.  Yes, you can buy the civic for $18k, pull the motor and replace with a blown Acura twin cam, add better exhaust, Recaros, better stereo, brakes, etc.  Sure, the Civic may give you the performance you want and maybe it's even comparable to the Merc, but it's really not the same and quality wise, it's not even close.  The norm is that for most consumers, they want to pick a phone or computer that does what they want it to do without having to "tweak" it - and they certainly don't go out and build their own box computer.  Does your box play games better than a stock Mac - probably.  But again, for the average consumer, game playing may only be a very small percentage of their usage and they also want the computer (or phone) to do everything else with no complex changes or modifications.  

 

Also, Apple isn't exactly using crap parts or systems.  It's not like they're cheaping out on battery, or screen, or UI.  As has been proven time and again, the so-called faster this or that or higher pixel camera (a great example) doesn't always work better or faster than the comparable Apple product.  So in cases like that, getting the "best" for your money doesn't equate to buying non-Apple.

Excellent analogy.  Well stated.

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