With an average of $100 in content purchased on every Apple mobile device, it is increasingly difficult for users to justify the switch from the iOS ecosystem to a competing platform like Android, a new analysis has found.
With a current installed base of about 225 million iOS-powered units, Apple customers have invested about $22 billion in content, cumulatively, for those devices, analyst Chris Whitmore with Deutsche Bank said in a note to investors on Monday. He sees the install base growing to more than 300 million units by the end of calendar year 2012, with sales more than $30 billion by the end of next year.
"This averages to (about) $100 of content for each installed device; suggesting switching costs are relatively high (not to mention the time required to port)," Whitmore wrote. "While Apple's best in class user experience is combined with these growing switching costs, the resulting customer loyalty is unparalleled."
Whitmore sees the "stickiness" of the iOS platform growing even more later this year, when Apple offers automatic, free syncing of data with iCloud. The new service, which will back up purchases, application data and device settings while offering storage of documents and photos, will further differentiate iOS from competing platforms.
The analysis comes after Apple revealed that it has reached a new milestone of 15 billion applications downloaded through the iOS App Store last week. A separate report from earlier Monday indicated that 18 percent of applications on the App Store are paid.
It's the investment in those paid applications, along with the purchase of content through the iTunes Store like music or movies, that Whitmore believes will make it even harder for users to switch to another platform.
He expects the development of applications for iOS devices to accelerate even further this year, when the iPhone and iPod touch are expected to receive hardware refreshes. Whitmore predicted last month that Apple will introduce a new iPhone hardware model priced at about $350 contract-free, addressing a huge market of 1 billion pre-paid mobile customers worldwide.
"In addition to new hardware, we expect the combination of an enormous iOS ecosystem, iCloud and a lower priced iPhone will extend AAPL?s market reach and leadership with developers and customers alike, further enhancing the overall value of the iOS platform," he said.
Canada, US approve Apple-led consortium's $4.5B purchase of Nortel patents
Apple says Mac OS X Lion due soon, invites developers to submit apps
Inside Apple's iOS 5: Assistive Touch allows accessible gesture commands
iOS 'stickiness' grows as average Apple user has $100 in content per device
Apple issues iOS 5 Beta 3 with Notifications, AirPlay mirroring fixes
Apple asks ITC to block import of HTC handsets in latest patent complaint
Entrance into HDTV market seen boosting Apple's market cap by $100B
Apple rumored to add second manufacturer for 'iPad 3' production this fall
iOS App Store downloads grow 61%, average app price up 14%
Apple collaborating on 2nd university bookstore retail opportunity
IDC bumps 2011 tablet forecast to 53M as Apple?s iPad 2 dominates
Web consortium at odds with Apple over widget patents
Apple ordered to pay $8M in damages over iPod playlist patent suit
New York artist investigated over Apple Store spyware project
Apple's back-to-school promo clobbering Microsoft's efforts
Mini DisplayPort to HDMI cables face recall over licensing issues
Apple could test limited iTunes HD+ 1080p movie service
Apple snags 50% of handset industry profits ahead of first 100M iPhone year
Apple reflecting dramatic improvements in iPad 2 availability
Apple investigating flick, pour to send 'physics metaphor' gestures for iOS
Verizon iPhone 4 accounts for 32% of all US iPhone 4 traffic
Apple looking into resuming Final Cut Pro 7 enterprise sales after FCP X backlash
Apple says iOS update coming to fix new PDF exploit
Apple retail plans, sources point to Mac OS X Lion launch next week
Apple again rumored to grow iPad family with HD model and Pro apps
Apple exploring iPads with translucent, synchronized displays for augmented reality
Apple serving up 1 billion apps per month, 14 million iPads per quarter
Apple's iAd program facing stiff competition on ad fees
New photo fuels rumors of TD-capable iPhone 5 for China Mobile in 2011
Apple filings reveal heated, wireless stylus concepts for iPad and iPhone
Apple rumored to be looking into new charging method for 6th-gen iPhone
Judge denies Apple motion for preliminary injunction against Amazon Appstore
Amazon Cloud Drive challenging Apple's iCloud with unlimited music storage
Apple heats up legal battle against Samsung with new ITC complaint
iBooks to boost Apple's iTunes into a $13 billion business by 2013
Spotify officially coming to the US to take on Apple's iTunes
Facebook, Skype team up for video calling to compete with Apple's FaceTime
Hackers release new browser-based iOS 'jailbreak' based on PDF exploit
Rumor: Apple may release 'iPad 2 Plus' with high-res display this year
Apple profits to benefit as memory, display pricing improves
Source : CLICK HERE
