Apple's Decade: A Matter of Trust

Similarly, 94% of iPhone 3GS buyers said the product met or exceeded their expectations. "iPhone 3GS owners are a highly satisfied group, strongly loyal to Apple, and that Apple innovation (touch screen, software UI, applications) is what continues to lure new buyers to its smartphones," the report reads. "The benefits to Apple for achieving this premium customer satisfaction include: strong pricing power, high customer lifetime value, powerful, inexpensive viral marketing (recommend to others), increased carrier channel leverage, indirect benefits to Apple's other businesses (e.g. Macs)."

Nobody understands the importance of trust in business like management guru Stephen R. Covey. In his book, The 8th Habit, he explains that "Win-lose thinking is the underlying assumption of almost all negotiations and problem solving. It comes from society's scarcity mindset, which says the more the other guy wins or gets, the less there is for me ... the way to break out of this win-lose mindset is to become emotionally and mentally settled on championing the other party's "win" as much as your own. It requires courage, abundant thinking, and great creativity to not settle on anything that is a compromise for either party."

Apple products have been very profitable for the company and great to use, according to consumer surveys. The brand has a high level of trust due to this win-win philosophy. The average selling price on the iPhone is slightly greater than $600. The ASP for other smartphone suppliers is $345 for Research In Motion's(RIMM) BlackBerry; $435 for the Palm (PALM) Pre; $288 for Nokia(NOK), $171 for Sony(SNE)-Ericsson(ERIC), and $124 for Motorola (MOT) handsets.

Now see: Apple's Decade: Innovation Kings >>>

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