Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (189992)	4/27/2016 11:01:53 AM
From: slacker711	Read Replies (1) \| Respond to of 213182

OK, what if I'm a customer, shopping for a smartphone; what leads me to buy an iPhone over lets just say, a Galaxy? If you already own an iPhone, then familiarity/happiness with iOS plus the sunk costs of various apps, accessories, and other hardware. For example, if you own an iPad and an iPhone, are you going to switch to the Galaxy S series? Do you really want to buy multiple versions of all of your apps without the ability to go back and forth between your devices? Thus far, customer loyalty in the iOS ecosystem has been incredibly high and I havent seen anything that supports that changing. Of course, sunk costs are likely higher in the developed world than elsewhere. So I would love to see loyalty rates in China and elsewhere to see how much they vary from the US. OTOH, if you are a Galaxy owner, you are very likely to remain with Android. Customer satisfaction rates are high among Galaxy owners though not quite as high the iPhone. Cook continues to report that the number of Andorid switchers continues to go up though so iPhone does remain attractive to many Android users. The key thing here is that Apple doesnt need to grow to support this valuation. Earnings could even decline a bit.....and as long as they then hit a steady state level, Apple investors should do fairly well. Slacker

To: JakeStraw who wrote (189992)	4/27/2016 11:10:47 AM
From: Bill from Wisconsin	1 Recommendation Recommended By david1951 Read Replies (3) \| Respond to of 213182

OK, what if I'm a customer, shopping for a smartphone; what leads me to buy an iPhone over lets just say, a Galaxy? For one, and this cuts both ways, that when I buy my iPhone, I'm not going to be forced to replace it (or feel the urgent need to replace it) 3 or more years down the road. Android and windows phones seem almost disposable. You buy it. You use it for a year or two. And then you pretty much throw it away. I bought a 4s when it came out. That went to my wife when I got a 5s. It went to my daughter when my wife bought a 5s. That 4s isn't going anywhere anytime soon. So yes, it cuts both ways- buying less NEW phones. But it makes me more comfortable paying $700 for a phone. I'd never pay that for an android. Apple justifies the premium price in my mind and in a lot of people's minds that way.