Analyst: The Cost of Disloyalty to Apple Is High!

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What’s the cost of switching from Apple’s (NASDAQ:AAPL) platform to an Android-based competitor? Goldman Sachs analyst Bill Shope set out to answer this question by exchanging his own iPhone with a Samsung (SSNLF.PK) Galaxy S4. Via Barron’s, Shope concludes that “the cost of switching platforms is significant” and goes beyond the mere dollar cost.

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With the goal of replicating all the content found on his iPhone, Shope discovered that he had to pay $79.85. However, even after using Apple’s iTunes Match service, Shope was still unable to transfer all of his iTunes content to Samsung’s Android platform.

As a result, Shope lost 13 percent of his “apps and iTunes-based content.” He also expended a significant amount of time and annoyance that exceeded the cash cost of the transfer.  The explicit cost of the transfer included, “$24.99 for a subscription to iTunes Match, $4.99 for the paid version of a music management app, and $49.87 for paid replica apps.”

Shope concludes that one of the primary benefits found in Apple’s platform is the iCloud service which allows a user to “seamlessly sync a user’s content across multiple Apple devices (Mac, iPod, iPhone, iPad and Apple TV).”  In other words, Shope found Android’s lack of an iCloud to be one of the platform’s biggest downsides.

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