Apple to Hit $548 Billion by 2014 with Loyalists Making Consistent Repurchases

February 7, 2012, By Sanjeev Ramachandran

Samsung may say Apple fans are ditching the queues for a Samsung device, but a recent research report says the story is other way around. A study conducted by Toni Sacconaghi of Bernstein Research points out that Apple customers often come back for a repurchase with Apple than going to any other rival product.

It says that relation between the customers and Apple can be compared to a product platform similar to a cable company, where the same customers come back again and again for paid subscriptions. Similarly, Apple loyalists do come back to Apple stores for repurchasing a new version of their device than opting for something else.

According to Sacconaghi, the user lock-in became a reality mainly due to the nature of Apple platform which integrates iTunes, App Store, Siri, iCloud, iBookstore and similar services, which turns into long term loyalty. It has helped the study to predict the lifetime value of each customer for each product and a possible replacement time

It says that iPhone tends to have a life time value of $700-$900 and will be replaced every 2 years. Mac systems at the same time, have a lifetime value of $600 to $650 with a replacement of every 3 years.

iPad, on the other hand, has a lifetime value of $275 to $300 with a replacement  in every 3 years. So with the statistics, the study predicts that the company’s revenue will reach $548 billion at the end of 2014.

However, Sacconaghi does not rule out chances of change. According to him, a poor execution down the line and carriers reducing the present subsidies on Apple products or extending the contract period may cause Apple loyalists to move to rival platforms.

Similarly, emergence of a new technology which makes people to move from computers and smartphones will also affect the predicted figures, if Apple fails to offer it. In both ways, it is not as easy as Samsung Super Bowl ads say.

Apple, iPad, iPhone, Macintosh, Siri, and iCloud Apple users are leaning towards Apple for a repurchase.  If you have previously owned an Apple product mentioned above, are you a loyalist or did you jump ship?

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