Apple Nation Is Growing Ranks Rapidly
Apple (NASDAQ:AAPL) may have reported deflating profits in April for the first time in 10 years, but the tech giant is still gearing up to add an additional 100 million users to its kingdom before the year is over. It expects to reach 600 million Apple users by the end of 2013, according to an investor note by Morgan Stanley analyst Katy Huberty.
She explains that Apple’s key to superiority is the effectiveness of its ecosystem, which draws people in, offers a variety of services, and subsequently helps initiate new revenue streams for the company. In addition to services that offer video and streaming music, another lucrative opportunity it offers users is mobile payment. With this option, “Apple can leverage its large user base, secure platform, and acquired AuthenTec technology.”
The company’s user base grew 55 percent in 2012 and currently stands at 500 million users. It believes that 40 percent of the device sales that it will make in the remaining months of 2013 will go to new customers. And each of these newbies will help them secure a significant amount of revenue and free cash flow.
Last year, each of Apple’s 500 million accounts spent about $329 and lead to a free cash flow of $95 per person.
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