Apple is still expected to have a strong grip on the smartphone market with the expected release of the iPhone 5 in September. In addition, the company expects to offer free iPhone 3GS. The company targets smartphone buyers in the mid-market in a bid to counter the expansion of Android.
Many Apple users are addicted to the use of apps, with many of them starting to explore the apps as soon as they buy their smartphones. Statistics show 54% of iPhone users stay with Apple because of the apps. Earlier surveys had showed many iPhone users are prepared to pay for the apps they use. The studies have shown that one third of iPhone users buy the apps in contrast to one in ten of Android and Blackberry users.
More than half of iPhone users maintain brand loyalty in order to keep using their apps, for which they pay. Studies show users tend to stick to the apps they download.
This is basically how Apple makes money in spite of subsidizing its products.
In contrast, the apps on the other brands are largely offered free of charge and are available on multiple platforms.