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Tag: halo effect

  • Apple’s Installed Base Reaches All-Time High

    Apple’s Installed Base Reaches All-Time High

    Apple posted its Q1 2020 financial results today, reporting a record revenue of $91.8 billion.

    There were a number of significant takeaways from the report, not the least of which is a return to profit growth. The company reported a 9% revenue increase from the year-ago quarter.

    Just as significant, however, is that Apple’s installed base has reached an all-time high, coming in at 1.5 million devices.

    “We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said Tim Cook, Apple’s CEO. “During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”

    According to AppleInsider, quoting Tim Cook, this represents an increase of over 100 million devices in the last 12 months. With Apple known for benefiting from a ‘halo effect,’ where users who purchase one device end up buying others because of their good experience, 100 million new devices is sure to have an impact on business down the line.

  • Microsoft Expects ‘Halo Effect’ From Winning Pentagon JEDI Contract

    Microsoft Expects ‘Halo Effect’ From Winning Pentagon JEDI Contract

    Fresh off of winning the Pentagon’s $10 billion JEDI contract, Microsoft CEO Satya Nadella said the company is expecting a “halo effect,” according to Yahoo Finance’s Brian Sozzi.

    “Halo effect” was a term used frequently in regard to Apple products, starting with the iPod. If customers liked the iPod enough, and were impressed with the Apple experience, it might entice them to purchase a Mac. That halo effect has since expanded to iPhones, iPads and Watches. Microsoft is now in a position to generate a halo effect of its own in the cloud market.

    While Windows may be the dominant player in the desktop market, it’s a distant second in the cloud arena, with 15.5% compared with AWS’ 47.8% market share. A significant deal—not to mention Microsoft’s recent Impact Level 6 Pentagon security certification—could entice other government agencies to invest in the software giant for their cloud needs, creating an ever-expanding halo effect. Nadella believes the JEDI contract could do just that, but also emphasized the need to stay grounded and not become overly confident.

    “Any big deal has a halo effect,” Nadella told Sozzi in an exclusive interview. “But to me, the most important thing is not to take any deal you won as some guarantee for future success but to stay humble, stay grounded on what we need to continue to do, which is be obsessed about customer needs. That’s what got us here.”