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  • Apple: Customer Loyalty Is A Reason To Buy 0 comments
    Oct 9, 2012 12:34 PM | about stocks: AAPL

    I am a long-term Apple investor because of products and services, not trends, flash in the pan gadgets, or because of some sort of loyalty to Steve Jobs and his vision.

    Apple simply dominates in both content services and content delivery via iTunes as well as applications on various devices. Millions upon millions of individuals are locked into Apple's ecosystem each quarter. I am not writing about only iOS devices either. All Apple devices are a gateway to content delivery.

    I will be the first to admit, I do not often buy content from iTunes. However actually having the option to buy the majority of the content I consume is a selling point to me, and I am certain that "comfort zone," is a very important aspect to many of Apple's customers.

    Once you go Apple you don't go back. This is one of the primary pillars of my "Apple Long" position. The reciprocal nature of Apple customers and their purchases of refreshed products maintains growth in the brand.

    The combination of brand, ease of use, content delivery, and hardware quality creates customer loyalty on an epic scale.

    The bottom line is simple. Apple creates customers through brand awareness, and marketing. It keeps those customers as well or better than anyone else in the world. These customers are hooked into the ecosystem and thus continue to drive sales with every product refresh.

    I am certain Apple bears/bashers will come out of the woodwork in defense of their positions, but sales numbers and quality control articles simply do not back up their positions.

    Disclaimer: I am Long AAPL.

    Disclosure: I am long AAPL.

    Themes: Technology, Entertainment Stocks: AAPL
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