Extremely sticky Apple Ecosystem
· Due to the strength of the company, it started to produce more products and provide more service associated with its iconic product, iPhone. Once its customer got hock onto its eco-system, it is extremely hard for them to leave its eco-system. It makes sure of the fact that customers will continue to use its products and make extremely easy to transfer data from one Apple product to another however extremely hard to transfer from Apple to another system. Rather than trying to move his data into Apple’s competitor product, the customer has no choice but to pay up for the next Apple product. Hence, Apple could continue to extract as much revenue from its customer base while expanding its product line. As Apple continues to expand its array of products, its revenue will continue to rise.
Ever Expanding Service Line
· As Apple eco-system continues to expand, Apple could continue to ramp up its services to its customers. Rather than relying on the sales of its product, it could provide more services within lead to more recuring revenue from the company. Due to the fact that the company continues to reap more revenue from its customer base, it could use the bulk of the revenue to increase its suit of products while further bolstering its share buyback and dividend payout.
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