Critique of Apple Opening A Store In Rio de Janeiro

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Critique of Apple Opening A Store In Rio de Janeiro

Many companies are trying to develop inroads into developing markets, and of course, Apple In Rio is no different. However, we question the business sense and the long-term thinking of opening an Apple store here in Rio de Janeiro.

The Rio Apple Store

The Rio Apple Store

We understand that Brazil is a country of 200 million people in from a market perspective, it is immense. However, in a country where most citizens only make the minimum wage which at this point is $310 a month and given that a new iPhone 5 after all of the Brazilian government taxes and cost that it will cost to sell the device in Brazil, the final price for the consumer will be roughly $1200 for an iPhone 5s In Brazil.

 

Now of course, Apple is not aiming to sell the device to the majority of Brazilians, only an extremely small percentage of the wealthiest of them. This we believe that they will do very well initially, but in the long run we question the strategy given that Apple devices are so costly in Brazil, and Apple’s competitors such as Samsung make make an extremely competitive product such as the Galaxy S IV at a far cheaper price point than what will be sold by Apple in Brazil.

Now, that being stated Apple may have a strategy where they will be introducing a cheaper versions of the iPhone and iPad. If this is the case, then maybe it would make sense to begin to expand operations in Brazil, but if they are not going to introduce cheaper products that will allow them to compete with their main competitor (Samsung) here in Brazil, then it would not make to enter this market.

 

For example, given the extraordinarily high price that an iPhone 5s will cost Brazilians, in Brazil it will be very dangerous to use such a device in public. Given the fact that most Brazilians only on minimum wage which is roughly $310 per month, for citizens that purchase an iPhone 5 we guarantee that in public most people would be very scared to be seeing using the device.

 

We are not proud to state this, but because of the cost factor there will be elements in society that will be looking for users to use that device in public so that they can steal it. The device at that price point, is comparable to diamonds and gold to certain criminal elements in society.

 

Finally, when looking at that device compared to Apple’s competitors such as Samsung In Brazil with regard to their their Galaxy S IV product, in our opinion Apple is behind the curve ball! When viewed from the marriage of technologies that are being produced at Samsung, and those that are being produce at Google, it is our conclusion that Apple in the long run, maybe wasting their money.

 

The technologies that you’re able to use with the Android OS are far superior to those that one would be able to use on iOS in Brazil. For example, Google’s mapping technologies in Brazil are far superior to those of Apple. Another example, is the product Google Now. The product is amazing, and and from a price point, it is far cheaper to buy another amazing phone hardware product which will allow a user to unlock a vast treasure chest of possibilities.

 

Please don’t take the opinion that we are “anti-apple” as we are not. In fact, this post is being created on Apple devices and your editor was even asked to work for Apple years ago, but in entering the market in Brazil, you cannot avoid subjects such as price. Just as Apple has made itself king of the “high-end market, Apple has to rebrand itself as king also at low end prices too!
In emerging markets, regardless of the company, that institution has to make itself desired by the vast majority of the market. In Brazil, to attract the vast majority of the market it only can be done from the values of price.

 

Furthermore, Brazil has to get on board and produce comprehensive Wi-Fi networks all across Brazil. Technology cannot advance if the networks are not in place. The country has to force telecoms to stop eating profits, and begin to build out more infrastructure across the country. Political actors need to understand that technology and its advancement are critical to the long-term competitiveness of the country itself. In this new world, it is technology that plays a critical role in advancing the fortunes of a country.
Critique of Apple Opening A Store In Rio de Janeiro
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About Bernard Asagai