“Users have clearly invested a great deal in Apple-backed apps, content and accessories,” Hall writes. “I am just not convinced, however, that their intent — or effect — is to appreciably increase user “switching costs”. The real switching costs are more elusive to define but of far greater value. Competitors, such as Amazon and Google, appear convinced that app freebies, lower-priced music, below-cost streaming video and near-zero margin hardware will enable them to snare current and potential Apple customers away, hopefully forever. This is a strategy that I believe is doomed to failure.”
Hall writes, “The fundamental difference between Apple and its competitors lies not at the margins but in the totality of sterling hardware, comprehensive and ongoing support, usability assurances, unequaled product integration and unmatched reliability. To effectively compete with Apple, companies must tackle all of these. Be forewarned: these are costly, take years to achieve, demand a relentless focus and are hard to sustain.”
Much more in the full article – recommended – here.