“If we are going to use the Internet to store our photographs, our home videos, our digital libraries, our school work, our medical records and our personal information, then we better know who controls our precious data. The only way consumers will trust putting that information online is if they trust the custodian,” Jason Schwarz, an analyst at Lone Peak Asset Management, writes for TheStreet.com.
“For Apple or any other company to achieve success in the era of cloud computing, it must command consumer trust,” Schwarz writes. “Apple already has a competitive advantage because of its success with iTunes.”
Schwarz writes, “For the past 10 years, more than 100 million consumers have developed a relationship with Apple through the iTunes platform. For many, this was their first experience buying products (music) online with a credit card. If Apple didn’t execute music sales and the subsequent storage of that music flawlessly, it would not have been given a second chance.”
“Confidence is high that Apple will consistently come out with up-to-date operating systems, software and hardware that meets modern demands… A total of 99% of respondents to a RBC/IQ ChangeWave survey in August 2009 said they were satisfied with their iPhone 3GS, with 82% of those ‘very satisfied,'” Schwarz reports. “Similarly, 94% of iPhone 3GS buyers said the product met or exceeded their expectations.”
Full article here.