Apple: It comes down to trust

Now, with an official number on the table, some analysts look like jackasses for their pie-in-the-sky numbers, and others hit the mark. For the iPhone haters, of which there are a lot, they compare actual sales versus pie-in-the-sky and call the iPhone a faltered step for Apple. For iPhone owners, we read this stuff and think, “What’s wrong with this picture.” As I continue to show off my iPhone, most people get it. And this is when I realized; Apple has the market’s trust.

When Apple first started selling iPods, it took them over a year and a half to get to their one millionth iPod. They sold 270k iPhones in their first two days. Think about that. Obviously this trend won’t continue, but here’s another fact: Apple sold about ten million iPods last quarter as well. I’m going to make a guess that the majority of these iPod purchases are not new customers (and if they are, good deal), I think they are repeat customers.

So what does this mean for Apple? Repeat customers means brand loyalty and trust. For myself and many others, a computer is just a computer, that is unless it is a Mac. How crazy is it that I say these things? I used to love PC’s. And then they became a commodity. Case in point: today I unboxed a brand-new HP Desktop for my fiancee (purchased for her by her company) and it was really anti-climatic. Regardless of where my Mac/PC stance stands, as a geek, unboxing a new computer is always a treat. This time it just didn’t do it for me.

Extend this same philosophy with music players, which more people have experienced with Apple (compared to Macs). People buy an iPod for a good experience and Apple continues to deliver. People like using iTunes for managing their music. Does anyone remember the apps before iTunes, gawwwddd! Kind of like photo library apps before Picassa or iPhoto. The cycle goes: buy iPod, use iPod, love iPod, watch new iPod come out, figure out a way to upgrade, buy new iPod. Wash, Rinse, Repeat.

Watch this happen with the iPhone, watch this happen with increased Mac sales. And to be completely honest, I will be surprised if they can continue a ten million iPod a quarter sales. But who knows. Trust is everything in business. When customers trust that Apple will provide a happy experience, they will ALWAYS buy Apple products versus trying something new.

Their stock is up $8.74 to $146 today, still not too late to buy.

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