What this implies is good though... The success of phone/handheld platforms is tied to successful titles by smaller independent game companies. The games/apps available are the switching cost.
Why switch platforms ever if you bought everything on iTunes or Android Store? The developers and content are a huge part of that.
I don’t know whether switching costs matter. Apps are so cheap compared to the cost of the phone. Even if someone spends just as much on apps it’s not as though all those apps will always be used. Why would you lose sleep when you can’t play that $1 game anymore you already beat anyway?
I think that apps can strengthen your brand. Everybody knows that Angry Birds is an iPhone thing. Others want to show that they have it because it’s trendy.
When it comes to apps, but more music and movies. Yes that will play into decisions heavily. Why would I buy an Android pad over an iPad if all my games, music and apps are on iTunes. It was the same with Windows desktop lock in (games and apps).
Music I can understand. I wouldn’t want to be unable to listen to it on a mobile device other than an iPod or iPhone. It’s personal and I have spent a lot of money on it. (Music from the iTunes Store doesn’t have DRM anymore, though.) But something as ephemeral as apps? I have spent maybe $100 or even $150 on apps in the last two years (which gets you a ton of apps) but I wouldn’t miss much more than maybe $15 of apps were I to switch. That’s nothing.
I can understand that you don’t want to spend something like $3000 just to get the Creative Suite and Office after you switched to a Mac but apps are somehow completely different (ephemeral, cheap, disposable).
Why switch platforms ever if you bought everything on iTunes or Android Store? The developers and content are a huge part of that.