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Technology Stocks : Apple Inc.
AAPL 278.08+0.8%3:59 PM EST
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To: JP Sullivan who wrote (166203)2/20/2014 10:51:24 PM
From: pyslent  Read Replies (1) of 213185
 
The main "switching cost," if you can call it that, is getting all of your buddies to move over to your new app so you can continue chatting there.


That's obvious, but the point is users could easily switch en-masse if Facebook/ WhatsApp made an onerous change (eg, introduced ads or raised the fee). Whatsapp itself got a foothold as a BBM alternative (enabling BBM addicts to move to Android/iOS). But with all the substantially similar alternatives, I don't see what Facebook is really buying. I see it mostly as a branding exercise.
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