Apps “locking” in customers

Apps have become a common expression after the success of iPhone/iPod application system. Its become huge business on Apple devices and Google Android Marketplace. Recently Apple logged over 10 billion downloads through the App Store. Sure, lots of Apps are free, but the numbers are interesting.

What I find more interesting is how the apps really create its own echo system for both Apple and Google. Their own digital download channels, which they own and operate. And Apple owns both the Hardware, Sales/Distribution Channels, Software, and get 30% of all the revenue generated by sold Apps.

From a customer perspective its interesting to see how this affect which device (system) we choose. For example, I am a big Apple fan, owning an iPad, iPod, iPhone and an iMac. I purchase and download new apps all the time. Mostly games, and between 1 – 5 dollars. And now when I have invested so much money in apps through Apples system, I am very unlikely to change to the Google system, cause I would then have to purchase all the apps again. Even if the apps isn’t that expensive, I still have invested quite a lot of money in Apple Apps.

In some way customers is making a bigger decisions now when they have to purchase mobile devices. The Apps will be a heavier factor in the choice of which system to pick.  Its interesting because Apps really adds value to the system and devices, so its in the interest of both Google and Apple to get the latest and best apps to their platform.

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