The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Blackfriars: Leopard Family Pack Cashes in on Customer Loyalty, Honesty

Blackfriars: Leopard Family Pack Cashes in on Customer Loyalty, Honesty

by , 3:00 PM EDT, October 25th, 2007

By avoiding copy protection and onerous licensing and activation plus a properly set price for the Mac OS X Family Pack, Apple actually gains financially, according to Carl Howe of Blackfriars Communications on Thursday.

Based on some statistics about what percentage of Apple customers elect to purchase the Mac OS X Family Pack and some basic assumptions, Carl Howe analyzed the financial benefit to Apple by trusting their customers to buy the right version.

After all, a customer could just buy the single licensed copy and install it on every Mac in the household. Many do just that. Apple does nothing to prevent it.

Starting with some data supplied by John Gruber at The Daring Fireball, Mr. Howe set up a spreadsheet to analyze how much money Apple makes by having the policy that it does. The starting point is that a significant percentage of Leopard purchases tracked through Mr. Gruber's Website are Family Pack purchases. The calculation suggested that Apple makes more money by trusting its customers.

"Not using copy protection (which tends to offend loyal customers while doing little to combat actual piracy) and providing reasonable upgrade options is not only good marketing; it's good business," Mr. Howe concluded. "Apple's Family Pack licensing strategy will increase its upgrade revenue about $103 million or 6% over the $1.8 billion Leopard upgrade cycle. And in the process, Apple will cement customer loyalty to boot. It's just one more proof point that treating customers with respect and trusting them to be honest pays."

Recent TMO Headlines - Updated March 24th

Wed, 3:25 PM
Disney+ Price Will Increase to $7.99 This Friday
Wed, 3:11 PM Offers a Unicorn Credit Card Powered by AI
Wed, 2:06 PM
Back Up Your Shortcuts Using iCloud Links With This Shortcut
Wed, 1:35 PM
Music and Videos Designed to Aid Rest, Sleep, Stress, and Anxiety: $29.99
Wed, 1:30 PM
5 Cryptocurrency Exchanges to Help You Buy Bitcoin
Wed, 1:23 PM
Mac OS X at XX – TMO Daily Observations 2021-03-24
Wed, 1:03 PM
Brother-Sister Duo Charged With Stealing MacBooks From Stanford
Wed, 12:52 PM
Scooter-Sharing Service ‘Lime’ Adds iOS 14 App Clips
Wed, 11:20 AM
Apple Comedy ‘Trying’ Returns for Season 2 on May 14
Wed, 11:04 AM
Reasons Why Developers Prefer Testing on iOS
Wed, 10:35 AM
Fantastic Safari Extensions and Where to Find Them
Wed, 10:32 AM
Connect DMs Turns Slack Into a Fully-Powered Messaging App
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Daily Observations
  • TMO on Twitter!