A prominent analyst from RBC Capital Markets, Mike Abramsky had published a report that details the results of a survey for the users of iPhone. This survey had 1,500 respondents and was conducted earlier this month. The survey seems to be geared towards knowing how consumers will respond to several new features that comes with the iOS 5. According to the said survey, 76% of the respondents will be making use of the iCloud service, on the other hand 30% of the users will sign-up with iTunes Match.
This would mean that by the time the iCloud is officially launched, about 150 million users will be signing up. According to Abramsky in his report:
This high response rate affirms the growing interest in storing, syncing and sharing music, photos and documents across multiple devices [such as] smartphones, tablets, PCs and TVs.
And of course, such favorable response for iCloud can also be attributed to the fact that the service is absolutely free. iCloud lets users backup their data on their iPhones, iPads and iPad Touches wirelessly into Apple's server. It also allows them to simultaneously sync the files that are stored in the clouds with up to 10 devices. Although there will be limitations with regards to storage, it is still a pretty sweet deal. So iDevice users is left with very little reasons not to use iCloud.
On the other hand, we have the iTunes Match, which will cost you $24.99 for a yearly subscription. This service enables the user to convert their non-iTunes (MP3 format and so on) songs into a more iTunes compatible format (AAC format). It basically lets you convert all your old songs from way back and receive a high quality AAC format version of those songs. To explain it better:
If you want all the benefits of iTunes in the Cloud for music you haven’t purchased from iTunes, iTunes Match is the perfect solution. It lets you store your entire collection, including music you’ve ripped from CDs or purchased somewhere other than iTunes. For just $24.99 a year.
Here’s how it works: iTunes determines which songs in your collection are available in the iTunes Store. Any music with a match is automatically added to your iCloud library for you to listen to anytime, on any device. Since there are more than 18 million songs in the iTunes Store, most of your music is probably already in iCloud. All you have to upload is what iTunes can’t match. Which is much faster than starting from scratch. And all the music iTunes matches plays back at 256-Kbps iTunes Plus quality — even if your original copy was of lower quality.
30% of the survey respondents have said that they are interested with the service and that they are willing to pay for the subscription price. If this indeed rolls out, according to the estimate of RBC, Apple is looking at a $1.5 billion revenue per annum. Now presumably if Apple takes a 30% cut since they still have the record labels to pay off, they will still get a $450 million revenue.
According to Abramsky, beside the earning potential these new services will further strengthen the Apple brand and improve the confidence and trust of its massive user base.
because it stores user data, iCloud along with iTunes is expected to enhance loyalty and stickiness of Apple’s customers, helping defend against threats from Android, helping grow a defensible install base of users who continually upgrade to next generation Macs, iPhones, iPads and iPods.
The survey also touched on the new iOS 5 feature, the iMessage. Which unsurprisingly garnered a favorable 70% considering that it lets you send SMS messages for free. Surely, more people will be using this feature once it rolls out. Since iMessage is integrated into the old Messaging app, some iPhone owners won't even realize that they are using it already.
If this survey is any indication, it looks like things are looking good for Apple. We'll see how things will turn out for the Cupertino tech giant once the iOS 5 officially launches this fall.Contact Us for News Tips, Corrections and Feedback