Digital Content Today: Money Changes Everything For iPhones
Tuesday, July 20, 2010![]() Antennagate aside, the peripheral customer value of iPhone users continues to be illustrated by new research reports. Both the Yankee Group and Juniper Research unveiled reports analysis on Tuesday that shows iPhone users are a competitive goldmine after they make their initial purchase. Yankee Group research shows Apple iPhone owners shop more, buy more and remain more loyal to their phones than users of other devices. With more than 1.7 million consumers lining up for iPhone 4s in its first three days of sale, the report estimates that those same consumers will be worth more than $1.8 billion to AT&T this year, and more than $9 billion to it over the next five years. “Why iPhones Matter,” a new report supported by data from the Yankee Group Anywhere Consumer Survey, outlines the following characteristics of iPhone users:
The Juniper Report finds long-term value in apps as well, but encourages other operators to follow suit. According to the report, players across the mobile value chain are seeking to emulate Apple's success with the App Store by launching own-brand storefronts, such as 'Mobile Market' from China Unicom, 'Airtel App Central' from Bharti and the 'Apps & Games Shop' on Vodafone 360. Furthermore, the transition to an app-centric environment has also benefited more established storefronts such as GetJar, which passed 1 billion downloads earlier this month. However, the Juniper report cautioned that players seeking to launch app stores would need to demonstrate sufficient scale to be able to induce developers to provide them with unique content. As report author Dr Windsor Holden observed, "Apple has been able to achieve several billion downloads from a comparatively small handset base because customers are buying the iPhone for the apps. That's not been the case with other handsets. So even if you have a subscriber base of tens of millions, your addressable market is a fraction of that -- and spread across a variety of operating systems and handsets." The report also noted that freemium was becoming the prevalent business model, with publishers increasingly offering applications free at point of sale and dirving revenue via in-app billing of subscription-based services, upgrades to premium content or micropayments for virtual items. | |
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