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Why Apple Is So Sticky
Hugh Pickens writes "'Sticky,' in the social sciences and particularly economics, describes a situation in which a variable is resistant to change. For websites or products it usually means that visitors or customers keep coming back for more. Now Fortune Magazine reports on an analysis by Deutsche Bank's Chris Whitmore on what makes the (iTunes-based) iPhone-iPod-iPad platform so sticky and why it's going to get harder, not easier, for Apple users to switch, no matter what Google and the rest of Apple's competitors have up their sleeves. Whitmore says the investment Apple's customers have made in content for those devices in terms of apps, videos, and music purchased at the iTunes Store creates Apple's 'stickiness.' Apple has an installed base today of about 150 million iTunes-dependent devices that could grow to more than 200 million by the end of 2011. Whitmore comes up with a cumulative investment in those devices of about $15 billion today, growing to $25 billion by the end of next year. 'This averages to ~$100 of content for each installed device,' Whitmore writes, 'suggesting switching costs are relatively high (not to mention the time required to port). When Apple's best-in-class user experience is combined with these growing switching costs, the resulting customer loyalty is unparalleled.'"
Why is Slashdot so stuck on Apple?
pretty much plays unprotected AACs, so there's no lock in there. As far as apps, many are used for a couple weeks and then forgotten or deleted. There may be a psychological lock in when looking at 100 apps, but in reality only a handful are used. At the iPad level, there are bigger and more useful apps which could be more of a lock-in factor, but there isn't much lock-in at the iPod and iPhone level. Hell, there will probably be a dozen comments in this story about slashdotters who switched from an iPhone to android.
Do you even lift?
These aren't the 'roids you're looking for.
Sounds like, at least in Apple's case, "sticky" is just another word for "vendor lockin"
Let's talk about applications only. Sure the average user may have purchased $100 worth of software, but how much of it do they actually use day to day? I think, just like a computer platform, that the cost of switching is lower than it would seem because most software does not need to be replaced, so the cost is lower than it would seem from simply examining purchase prices for everything you own.
Now throw in media... songs are pretty much sold DRM free these days, so there is no cost to migrate media. Video is tricker since through iTunes it is wrapped in DRM. But I wonder apart from children's video, how much video purchased online is really there to be watched again and again - I buy a lot of video online but after I watch it, I generally don't watch it more than once. I "buy" it knowing full well it's really more like a rental, and if I really like a video I'll buy it on physical media that I can load out or keep as long as I want.
There is something to the argument they make, I just don't think it's as strong on the value side as they make it out to be.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
I reject this statement because it is fundamentally not true.
Case in point, the iTunes interface is not intuitive and neither are many of the features. I'm not alone in this belief and I've seen many a novices confused by it. However, people eventually do learn to navigate it.
The same goes for the ipod interface. Thankfully my nano is rock box compatible and I was able to install something that was a bit easier to sync my music with.
I pretty much find all of their interfaces confusing and I really don't have the desire to learn them. Good news is that there are many alternatives on the market.
"You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
OS X only exists to make people want to buy Apple hardware. Allowing OS X on commodity hardware would dilute their brand and suck buyers away from what they're actually trying to sell.
I know many people with Iphones, Ipads and Ipods, nearly all of them love the devices but hate Itunes, using it as the only option available to them. Several of my more computer literate friends are unhappy with the restrictions thier Ipods place on them regarding PC transfer rights and lack of backup options for their content, but most never even consider what would happen if their device failed and won't until it does...
errr....umm...*whooosh* *whoosh* Is this thing on ?
In general geeks like to beat up on some large incorporeal entity that a segment of the community will defend to the death. Microsoft just isn't all that fun to kick around anymore, since the only people who still care about Windows are CTO's and those of us unfortunate enough to work in the dark section of IT known as Help Desk. Apple has become a juggernaut of shiny devices that sell to a large segment of the population that would have never even considered buying a Mac. An even smaller percentage of that give a crap about "lock-in" or other political stances. OS X geeks are a small and defensive breed, and they feel that these devices, ostensibly still computers, are an extension of their ecosystem. They're not, and they are a gateway drug for some. They were for me, but the large chunk of the iPhone and iPod populace doesn't care, and whenever the new must have gadget comes around, they'll move on. Previous generations re-bought their entire collections in several different mediums, this one will be no different. Lock in sucks, and hopefully video vendors come around on DRM, but I think streaming on demand will leapfrog them anyway. So the Apple fans will defend Steve Jobs unique vision as if it was their own, and the geeks will beat this topic to death until there something else that people love to bitch about on the Internet. It isn't principled, it's pointless. En mass much of the ecosystem has turned from Redmond Bad Cupertino Good to Curpertino Bad, Mountain View Good. That will last until some new hip kid on the block becomes the Geek chic and we will then decry Google's constant assault on our privacy. Here's to waiting until Cannonical is the bad guy.
Agreed. I dislike most Apples interfaces. They certainly look clean which makes people think they're simple, but once you get into it they aren't any more intuitive than most Windows programs (and a lot less than some). The iPod I like (click wheel version I mean, not iPod Touch) but I dislike their OSs UI and the iPhone/iPod Touch UI. I use iTunes on Windows because I have an iPod, but wouldn't out of choice (there may be iTunes alternatives that work with iPods but I am yet to find a good one...next music player I get won't be an iPod anyway) and the UI works well enough, but is far from intuitive. The only other Apple software I use is Safari, which I use for testing websites and nothing more. That said, I am fairly familiar with a lot of Mac stuff since my dad (who I work with) uses one and I am essentially the administrator (I fulfill the role of "tech guy", among other things). Some of their stuff does "just work" but much of it doesn't, and is not really any better than Windows programs (some are good, some aren't). Even as a Mac guy, my dad doesn't use a lot of Apple software beyond small widgets (calculator, stickies etc) and the email app.
Apple owner here. You have identified a sizable segment of the mac ownership demographic. The demographic that buys apple shit because "apple is cool and I want to buy cool" These people are known as "Mactards"
However there are two other sizable segments.
1) The segment that thinks that Apple is easier and "just works" when compared to Windows. They dont want to fuck about with their PC. (I disagree with these people because Windows7 "just works" too)
2) The segment that thinks that Apple is easier and "just works" when compared to Linux. They dont want to fuck about with configuration files and rc scripts anymore. I fall into this segment. I demand a usable and strong command line with all the proper *nix utilities, but I want a strong windowing system and dont ever want to fuck about with video card drivers ever again.
The apple gui/desktop is superior to kde/gnome/X... not all of us bought apple because apple is cool, some of us bought it while waiting for linux to become more polished.
I'd like to know where you got your kool-aid
This motherfucker jumped through my wall screaming "OHHHH YEEEAAAHHH" and then poured me a glass of kool-aid.
I reject this statement because it is fundamentally not true.
Case in point, the iTunes interface is not intuitive and neither are many of the features.
For novice users, I reject that any solution that is based around files (which I know you would prefer and sounds like what you are using) is easier for non-technical users to understand than the way iTunes works. You stated that you saw novice users confused by iTunes, but they got over it. Well I have seen a lot of novice users that never get over the confusion of how to deal with files.
iTunes "just works" for most users despite being somewhat nonintuitive, because the other solutions are either more clunky to set up or less intuitive still.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Duh.
.
Prisencolinensinainciusol. Ol Rait!
Believe me, "It just works." I bought my Dad an iMac a couple years ago. Once he got used to quitting programs as opposed just hitting the red X and dragging and dropping programs to install them I've not had to field a single phone call the past couple years. I'm no longer spending an evening wiping his computer and reinstalling because he got a virus or spyware of some kind. And it only took him about a week to make that transition between christmas and new years.
"The problem with socialism is eventually you run out of other people's money" - Thatcher.
I call bullshit on this one.
I call BS on your BS. I use iTunes and I like a couple of things about it, but it has its problems.
- Have you ever tried moving music in your library? Have fun cleaning up the invalid entries.
- In Windows there's all sorts of resource hogging software - services and helpers running ALL the time, regardless of if I'm using iTunes
- Ever tried to recover music back from your iPod? You use to be able to do that once upon a time, but they decided that there was too much potential for piracy
- My clickwheel has never quite worked right on my iPod. I should have had that fixed under warranty early on, but who knows how long I owuldn't have had my iPod for and what sort of cost/hassles I'd have gone through to RMA. Apple was making it VERY hard to RMA at one point here in Australia. The local consumer body had to step in.
- The click wheel interface sucks for large collections of music. Searching for a song on the iPod can be a pain.
- They make you jump through hoops to use certain features like Genius. In some countries you, like Australia you have to create an iTunes account and supply your credit card. When you "turn off" or don't enable Genius it still gets in the way
- Damn iPod screens attract scratches like moths to a flame. Keep some brasso handy.
These posts express my own personal views, not those of my employer
Is this a serious point of view?
As a software developer, OSS advocate, multiple-os user, I couldn't disagree more.
My personal laptop is a 1st-gen MacBook Pro when they first made the Intel switch, and I'm using an iPhone 3G. Never used an Apple product until they made the intel switch, and I've loved every minute of OS X.
I still use Windows, Linux and Solaris for personal use, work use and for any other purpose, but if I had a choice I would undoubtedly choose OS X.
Why? Simple, it doesn't suck. I won't say "it just works", but it sucks a hell of a lot less then Windows or Linux. Surely, we can agree on Windows here, and Linux I'm not going to go into some kind of argument, but suffice to say my time is valuable (if not to others, to myself), I don't want to invest tens to hundreds of hours into simply configuring Linux to do what I want, when OS X does out of the box, with a cleaner and (more) unified interface.
Why did I get an iPhone instead of a phone with WebOS, Android or Symbian? Same goddamn reasons, WebOS is a tiny market, Android is fragmented and destroyed by the vendor specific distributions (sad, really, I wish this weren't the case -- or else i'd have gone here). When iPhone 3.0 came out, I was able to upgrade my phone instantly. When iPhone 4.0 beta came out, I was able to upgrade my phone isntantly. My buddy at work with his Android phone? He's stuck on something ridicuously old at 1.5 because he's at the mercy of the combination of his cell provider and handset maker to update their proprietary version of Android.
We all know that the cell phone providers have a long way to go in order to "catch up" with the technology we all want to use; and that's why I went with apple here. They used their brand power to strong-arm a major cell provider into giving them unified control. Sure, I'm "locked in" to Apple for my iPhone. But what do I get for that?
- Free (in a sense, not at additional charge) software and OS ugprades
- Largest app store by an order of magnitude (i seldom pay for anything, tons of free stuff available that do what I want)
- Unified interface to sync/get content (Sure, you see iTunes as locked in, but the app is free, purchased music is DRM free and there is simply no better alternative on any OS. So what the hell are you complaining about? Make a better competitor and maybe someone will use it.)
- The UI is smoother and more intuitive then any other device
- Flash? What? Android doesnt even run flash (except in latest betas, i believe, which wont see an actual piece of hardware for who knows how long, so dont give me that BS)
Until someone else can compete at this level (and that wont be for some time, if they are lucky), then I'll stick with my "locked in" platform, which, has more free and better tools available then the OSS alternatives.
By the way... small share of the market? Apple has moved (literally) over 50 million iPhones, and I believe significantly more iPod Touch's, and the US has a population of what.. roughly 330 million people, and lets say we make some broad assumptions that only about 1/3 (110 million) of those (cut out children, elderly) are even eligible iphone customers, thats nearly 50% market penetration. Small? Are you on crack?
Yes, that's 50 million world wide, but that is just a comparison to put it into perspective.
"I've not had to field a single phone call the past couple years."
So I guess he's really pissed and won't call you anymore. Sorry.
Lol, "You can avoid the lock in annoyance by buying a Mac and then buy only Apple products"?
+1 funny
So Slashdot historically loves Apple. Reason is twofold:
1) Apple is a historic underdog and Slashdot likes underdogs. They were the small guys fighting the evil that is MS, and Slashdot REALLY hates MS. As such they like Apple, or at least what Apple was.
2) Apple provides an easy to use alternative to Windows with some UNIX underpinnings. While many are loathe to admit it, Linux is a PITA for many desktop uses. Some of the people who use(d) it do so out of anti-MS zealotry and/or a UNIX superiority complex. Well, Apple offers an OS you can pretend is UNIX (even though that is just a minor foundation) that is easy to use and not MS. So, it is the sort of thing many /.ers like.
However, Apple is, and nearly always has been, a company far more controlling than MS. They want to dictate everything about your computer usage. They want you to have to buy hardware from them, in the configurations they specify only. They want you to use only their OS. They want to control where you get your applications and media, they want to tell you when to upgrade, etc.
This is, of course, counter to what Slashdot likes. However it was something that wasn't that apparent, nor that onerous back when Apple was the little guy. However as Apple has grown, it has become more and more obvious that their vision of the future of technology is one where they run everything.
So because of these two things, you see a lot of Apple stories, and a lot of stories on their lock in strategies. Don't expect it to change any time soon as Apple isn't likely going anywhere and the combination of love/hate will continue here.