The Apple Lifestyle

Post by
Scott Francis

Horace Dediu's analysis of the cost of the Apple Lifestyle:

"But much more interesting than this value is the notion that Apple is in business to deliver a product/service mix to loyal customers and to preserve their loyalty through constant improvement and innovation. You can see strategic intent in increasing the attach rate of services per device. You can see a strategic intent in building loyalty and the right customer base which is likely to be loyal. You can see strategic intent in the iteration of the product in a way that extends loyalty and expands the solid base but also increases the $/day rate. This analysis correctly informs almost all decisions the company makes."

A comment below tells it all:

"Interesting...so living the "Apple Life" costs less than $4 per day - that's less than what people spend per day on a Starbucks coffee. The cost/benefit comparison of Apple products vs. a cup of Starbucks coffee is shocking (to a non-coffee drinker)."

So true.

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