How much are you being squeezed? It depends on how many of Apple’s products you own and services you use, and it adds up very fast, but the latest numbers indicate more than a dollar per day. For some of us, it’s much more than that.
$40 Hath September
One of the more revered and interesting analysts following Apple is Horace Dediu who tracks numbers that go beyond mere marketshare and total profits.
Apple customers deliver an astronomical $40 per month apiece to the company, versus the pennies per month that Facebook and Google collect, and the few dollars a month that Amazon receives
Who. That’s $480 per year. On average. My case is worse (or, better, if you’re Apple and watching how much I spend). Because I’m deeply embedded into the technology industry, and committed to Apple’s entire product line, my numbers are skewed in ways which Tim Cook should applaud and send me a plaque (although an Apple Gift Card would be nice).
There’s a MacBook Pro that gets updated every three years. That’s $2,500 divided by 36 months, or, $69 a month. I’m on the iPhone Upgrade Program so there’s another $45 a month to keep up with the iOS Joneses. I get three years from an iPad, and that accounts for $33 a month (I’m planning to go for a bigger iPad Pro later this year). Apple TV might last three years, so $5 per month. $12 a month for Apple Watch (I’ll be in line this fall). I’m into Apple Music, but use discount cards applied to my iTunes account to get a discount, but including apps and other purchases, maybe another $30 per month.
My value to Apple adds up.
- $69 – MacBook Pro
- $45 – iPhone 7 Plus
- $33 – iPad Pro
- $12 – Apple Watch
- $30 – iTunes
That equates to $189 per month to Apple for the joy of being treated like royalty (not really treated like royalty; Tim Cook doesn’t answer my email).
Without question, I’m an outlier. I know plenty of friends, family, and co-workers who have been getting by just fine on a lowly iPhone 5s for years, so that helps skew the numbers down to the $40 per month level. But, I also know plenty of the aforementioned friends, family, and co-workers who are invested similarly with Mac, iPhone, iPad, Watch, Apple TV, and an ongoing iTunes account.
Apple says it has nearly a billion customers (iOS and OS X) so $40 per month per customer is pushing a few hundred billion in annual revenue, so yeah, that’s about right.
I’m so happy that I can do my part to help other people get rich.