Apple came in for some anti-competitive criticism in some European countries over the proprietary manner in which the iTunes music store locked people into using the iPod in order to listen to their purchases. Apple defended the iTunes hardware lockout on the grounds that the music industry insisted that Apple maintained a very tight control over playback device security to mitigate music piracy risks. Apple said they could'nt give such guarantees if they didn't have direct control of the hardware, hence only Apple's own iPods could playback iTunes purchased music.
But the iTunes AppStore is a different kettle of fish because it enables Apple to lock its customers into the iPhone / iPod Touch market even more effectively than with music, and legitimately.
Whereas with music purchases where Apple allowed customers to burn the iTunes purchased tracks to CD, with applications purchased from the AppStore, no such export capability can ever exist. Therefore, if a credible iPhone challenger ever does emerge, it won't be simply competing on the spec, design or usability of the device, first it needs to convice every iPhone customer to write off the conceivably hundreds of pounds they've spent on AppStore applications and games (if they're anything like me) and feel good about doing without them on the new phone. Or, at best, re-purchase those apps that have been ported to other phone platforms.
Every seventy-nine pence spent on the iTunes AppStore, regardless of how materially insignificant such small individual cash transaction is, has the massively disproportionate effect of making that customer ever more sticky to the iPhone platform. In return, Apple's brand loyalty recieves an indirect strengthening by the sub-brand loyalty its users have for the Apps they purchase.
That Google and Palm have come to the party late is already an impediment enough for them, nevermind the prospect of how tough a job they've got on their hands unseating the incumbent leader whose customers get ever more stickier, 3,000 times every minute.
But the iTunes AppStore is a different kettle of fish because it enables Apple to lock its customers into the iPhone / iPod Touch market even more effectively than with music, and legitimately.
Whereas with music purchases where Apple allowed customers to burn the iTunes purchased tracks to CD, with applications purchased from the AppStore, no such export capability can ever exist. Therefore, if a credible iPhone challenger ever does emerge, it won't be simply competing on the spec, design or usability of the device, first it needs to convice every iPhone customer to write off the conceivably hundreds of pounds they've spent on AppStore applications and games (if they're anything like me) and feel good about doing without them on the new phone. Or, at best, re-purchase those apps that have been ported to other phone platforms.
Every seventy-nine pence spent on the iTunes AppStore, regardless of how materially insignificant such small individual cash transaction is, has the massively disproportionate effect of making that customer ever more sticky to the iPhone platform. In return, Apple's brand loyalty recieves an indirect strengthening by the sub-brand loyalty its users have for the Apps they purchase.
That Google and Palm have come to the party late is already an impediment enough for them, nevermind the prospect of how tough a job they've got on their hands unseating the incumbent leader whose customers get ever more stickier, 3,000 times every minute.