With only the app store, there will be less customers for apple in Singapore, causing a reduction in sales. This is due to the fact that the app store is not the only attraction for buying iphones. Other great attractions like itunes and for customers to decide whether to buy iphone or not. This may cause potential customers to have a preference towards other smart phones like Samsung's galaxy and google's android. There is already evidence stating that rival companies have came up with new smart phones and tablets to counter apple, and that they have started to gain user trust, with the HTC smartphones having more than 40% growth in sales. This clearly shows us how apple's devices are challenged, and with only the app store to attract customers, many of the potential customers will change their decision to buy apple's devices as there are other devices that are as good.
Also, apple will loss its opportunity. As there is only app store in Singapore, Singaporean customers might turn towards other products. If they felt satisfied with apple's rival devices, they may lose trust towards apple's phones. By only allowing the App store in Singapore due to rampant piracy, apple is losing its advantage as the first company to produce smart phones and tablets, by indirectly influencing potential customers to try out rival companies' products. Thus, apple will lose its advantage as once customers try out new products, they will judge based on how good the tablets are, and not judge by which product came first.
Finally, more piracy might happen as a result of apple's decision. As people want other functions other than the app store, they might resort to get what they wanted through illegal means. Since the customers cannot get what they want, even if they can afford to pay for the functions, they might want to get it for free, by using illegal ways, as they might feel that they are having a disadvantage as people from other places can get the functions but yet they cannot. Thus, apple's decision causes an increase in piracy as people might feel that it was unfair that they were not allowed to use functions that other could use, even when they want to pay for it.
In conclusion, apple's decision to only allow app store in Singapore will cause a reduction in sales, even more piracy and the loss of opportunities.
Reflection
After doing this expository essay, I realized that Apple actually has very good strategies to increase its growth, but yet this particular decision can cause severe consequences. For now, apple have had a wonderful growth, becoming the most valuable company in the United states of America. However, I think that the reason for all the growth is that the customer want the new products as they are new and they symbolizes the higher class. People want to get them as they are unique and also by having these products of Apple inc, which are considered as one of the best, people can look richer. This type of thinking is very prevalent in Asia, especially China. However, by actually limiting the functions of their products, they are losing customers in Singapore, which might in turn affect the mindset of people from other Asian countries like China. People from China might feel that Apple will not tolerate piracy, and in a country like China with rampant piracy, if they buy Apple products, it is not guaranteed that the functions they had now would last as Apple might also limit the functions. I believe that another reason for Apple's success is because it keeps on introducing new things, causing people to continually get excited over its products. However, if it were to limit the functions of their products in every country with piracy, instead of adding new functions, people will soon loss all their excitement towards Apple's products. In conclusion, I feel that Apple should not restrict the functions of their products as the consequences can be very severe.
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