Aspirational Apple

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Surprise… The iPhone X is a hit.

It’s the best selling smartphone on the market.

The analysts calling for Apple’s demise, because of a >$1,000 smartphone, were wrong.

Again.

I don’t know why people think that a $1,000 iPhone is expensive, considering what it can do… You can run a business off of it, it’s probably more secure than an Android phone, it has cutting edge facial recognition, incredible camera, lightning fast, and more power than a MacBook (and the first space shuttle), is going to be a turnoff for any Apple fan…

People buy $1,000 TVs, appliances, computers, car accessories, furniture, etc on a whim using a credit card.

Yes, anyone with a credit card can buy an iPhone X.

Apple as an Aspirational Brand

But Apple is a brand that people aspire to own… The Apple logo is synonymous with high quality and beautiful design.

People don’t really aspire to own an LG phone.

Yes, Apple is a tech company… But it’s more of a consumer products company and turning into a luxury jewelry company as well.

The aspirational aspects of Apple’s business are why loyal customers are willing (and eager) to pay more for an Apple product.

Apple doesn’t always get it right… Siri is unreliable.

But customer satisfaction with iPhone and Apple’s product ecosystem overall is high… With one of the highest customer lifetime value levels ever. Apparently customer satisfaction with Apple iPhone X, etc. is at an incredible 99%.1

Customer interest and satisfaction with iPhone are very, very strong for both consumers and business users. The latest data from 451 Research indicates U.S. customer satisfaction ratings of 96% or higher across iPhone models. In fact, combining iPhone 8, iPhone 8 Plus, and iPhone X, consumers reported an amazing 99% satisfaction rating. And among business customers planning to purchase smartphones in the next quarter, 77% plan to purchase iPhone. Our customers are also incredibly loyal, with Kantar’s latest U.S. research reflecting a 96% iPhone loyalty rate, the highest ever measured.

Turns out Warren Buffett didn’t listen to the analysts about Apple’s demise either.

He bought another 75,000,000 shares for Berkshire Hathaway in Q1 2018.

Apple stock is up almost 5% today.

Footnotes

  1. Below is a quote from Tim Cook in Apple’s Q1 2018 earnings report.