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Lasts longer • Asymco
Horace Dediu:
<p>What is the logic of this durability focus as a business model? It may be good for the environment but is it good for the bottom line?

Of course, there would be not much business without an environment and we should all strive for sustainability.  But this is an existential observation, and it’s defensive. The important call to make is that Apple is making a bet that sustainability is a growth business.

Fundamentally, Apple is betting on having customers, not selling them products.

The purpose of Apple as a firm is to create and preserve customers and to create and preserve products. This is fundamental and not fully recognized.

To understand how this works, if you look at the pricing graph below, you can read it as a story of increasing prices for a decreasing market share. But if you understand that each advance in products increases absorbable[1] utility then the cost per use remains steady or declines.

<img src="http://www.asymco.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-13-at-8.42.33-AM-768x777.png" width="100%" />

An iPhone at $1200 may be less expensive than an iPhone at $600 if the $1200 version lasts twice as long as is used twice as much each day. The $1200 phone delivers 4x the utility at twice the price, making it half the price. By making more durable products, both in terms of hardware and software, the customer base is satisfied and preserved.

Practically, the initial buyer may resell the iPhone and that 2nd hand devices may be sold yet again. This means an iPhone could have three users over its life and thus it could end up expanding the audience for Apple by a factor of 2 or even 3.

The expanded audience is offered accessories, additional products such as wearables and, of course, services. These residual business models are certainly profitable, perhaps even more so than the iPhone.</p>

Dediu always has a different way of looking at things.
apple  customers  iphone 
7 days ago by charlesarthur
Lasts Longer
“Of course, there would be not much business without an environment and we should all strive for sustainability. But this is an existential observation, and it’s defensive. The important call to make is that Apple is making a bet that sustainability is a growth business.

Fundamentally, Apple is betting on having customers not selling them products.

The purpose of Apple as a firm is to create and preserve customers and to create and preserve products. This is fundamental and not fully recognized.”
services  business  product  iphone  customers  apple  asymco 
7 days ago by colm.mcmullan
Collect and prioritize product feedback · Fider
Fider can help you collect and prioritize product feedback so that you can focus on building the right product.
customers  productivity  tools  feedback 
9 days ago by kOoLiNuS
How To Be More Aware of Guests in Your Store
Retail stores depend on delivering excellent customer service. Part of achieving that goal relies on guaranteeing smooth interactions between your customers and your staff.
customers  guests  store 
13 days ago by Adventure_Web
3 Easy Ways to Welcome New and Returning Customers to Your Business with a Well-Maintained Restroom
To welcome new and returning customers to your business, consider these three easy ways to keep your customers happy with a well-maintained restroom.
restroom  sanitized  customers 
28 days ago by Adventure_Web
Twitter
Compelling statistics on why matters:

"89 percent of () are willing to give transparent b…
Transparency  customers  from twitter
29 days ago by jhill5
Twitter
RT : provider posts a $1.6 Billion dollar profit while struggle with higher &…
Customers  Electricity  Energy  AGL  from twitter
5 weeks ago by neerav

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