“When Barclays’ Ben Reitzes refers to the ‘stickiness’ of Apple’s iPhone, he’s not talking about adhesives on the product’s surface,” Philip Elmer-DeWitt reports for Fortune.
“What he’s referring to in a report to clients issued Tuesday is a lock-in effect, whereby iPhone and iPod touch owners who buy from the App Store become increasing unlikely to switch to a competing product. Reitzes calls this a ‘key differentiating factor,'” Elmer-DeWitt reports.
Reitzes wrote, “‘This software strategy enables a distinctive ‘stickiness’ for the iPhone, which should enhance customer loyalty over the long-term. We believe ‘apps’ personalize iPhones to levels that competitors cannot match. We also believe strong interest in the App Store is helping to pull through iPod touch units,'” Elmer-DeWitt reports.
Full article here.
[Thanks to MacDailyNews Reader “JES42” for the heads up.]