“Apple’s latest product launch (new OSX, iPads, Macs and iWork/iLife) came with a change in pricing for software,” Horace Dediu reports for Asymco. “OS X and iWork and iLife and updates are now made available free on new Macs and, in the case of the suites, on iOS devices as well.”
“The foregone revenues could be as much as $450 million from what would have been received with existing pricing model,” Dediu reports. “So the question that naturally arises is whether this is “worth it”. Whether by offering free software hardware or service revenues rise.”
“I believe the logic for Apple is that usage of the products determines their value and therefore placing powerful software in the hands of more users means they will value the entire system more,” Dediu reports. “This leads to the notion of greater ‘stickiness’ or ‘lock-in’ but also to higher satisfaction and loyalty, rate of upgrades and even more third party purchases and yet more usage… One wonders how long before Apple’s approach becomes the norm for other platforms.”
Much more, including the usual excellent charts, in the full article – recommended – here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]