Why the iPod Touch is more strategic than the iPhone for Apple

Found this link and wanted to share it – thought it was an interesting argument. Quoted from Flurry, an iPhone analytics provider’s newsletter:

As all industry eyes look to the iPhone, the iPod Touch is quietly building a loyal base among the next generation of iPhone users, positioning Apple to corner the smartphone market not only today, but also tomorrow. In terms of Life Stage Marketing, the practice of appealing to different age-based segments, Apple is using the iPod Touch to build loyalty with pre-teens and teens, even before they have their own phones (think: McDonalds’ Happy Meal marketing strategy).

When today’s young iPod Touch users age by five years, they will already have iTunes accounts, saved personal contacts to their iPod Touch devices, purchased hundreds of apps and songs, and mastered the iPhone OS user interface. This translates into loyalty and switching costs, allowing Apple to seamlessly “graduate” young users from the iPod Touch to the iPhone.

An interesting thought, for sure.

Read more here.

Published by

Andrew Chen

Andrew Chen is a general partner at Andreessen Horowitz, investing in startups within consumer and bottoms up SaaS. Previously, he led Rider Growth at Uber, focusing on acquisition, new user experience, churn, and notifications/email. For the past decade, he’s written about metrics, monetization, and growth. He is an advisor/investor for tech startups including AngelList, Barkbox, Boba Guys, Dropbox, Front, Gusto, Product Hunt, Tinder, Workato and others. He holds a B.S. in Applied Mathematics from the University of Washington

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