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Thursday, July 14, 2011

What are the negative consequences of Apple's decision

Apple has refused to introduce the iTunes Music Store in Singapore, despite several requests by Singaporeans. Their main concern is the rampant piracy in Asia. Although this might have a short-term benefit in Singapore, I believe that there would be a long term detrimental effect on Apple,

Firstly, Apple would suffer a great profit loss because of not introducing the iTunes Music Store in Singapore. This because Asia, being the most densely populated continent, would have a great number of potential customers. Although there are a number of pirater, there would be an overall profit for Apple. This would be a great and significant loss of profit for Apple.

Secondly, Apple would lose trust from Singaporeans. By stating that Asia has rampant piracy, it is accusing Singaporeans of engaging in piracy. This is a very critical accusation as Singapore is known for its low crime rate and low piracy-engagement rate. By accusing Singapore, Singaporeans would be bound to develop hatred towards Apple, and strain their customer relationship.

However, Apple would also stand to gain from this decision. This decision shows that Apple are strict towards piracy and do not condone any form of it. This gives customers assurance that the company they are clients of have high standards and their credentials would not be compromised.

In conclusion, I believe that Apple refusing to introduce the iTunes Music Store in Singapore has more cons than pros.

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