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Technology Stocks : Apple Inc.

AAPL 286.23

+1.0%

Dec 2 3:59 PM EST

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To: rnsmth who wrote (149959)	2/9/2013 11:37:52 AM
From: slacker711	4 Recommendations Read Replies (1) of 213173

What more could you want of stickiness? Switching costs. That is the reason why Microsoft can survive and sometimes thrive even though they have launched products like Windows ME and Windows Vista. iPhone sales would never survive that kind of monumental failure. Microsoft also had little to worry about from the competition creating some sort of breakthrough OS. The switching costs are so high that it would have a limited impact. OTOH, we have to depend on Apple continuing to make great products. Their track record is excellent and I have confidence in the next few years, but I dont believe you can project past that point. You simply dont know who will still be with the company or whether the competition can create a revolutionary new product or even whether Ive and company will simply screw up. My guess is that loyalty will remain high as long as Apple is at least close to the competition. The app costs as well as at least a bit of a learning curve for Android will help keep loyalty high...but that is no where close to the kind of durable franchise that Microsoft has with Windows. Slacker

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