Apple’s Arrogance

The Apple Store in New York City.
The Apple Store in New York City.

 

Apple is continuing to keep its investment in Korea to a minimum, despite Korean consumers’ enthusiasm for the iPhone 6 and iPhone 6 Plus.

Apple announced on Oct. 26 that it is going to set up 25 more Apple Stores in China within two years in addition to the 15 already open. However, the company is not running any Apple Store in Korea, although it has done business in the country for five years. Instead, Apple Premium Resellers (APRs) such as Frisbee, eMart Apple Shop, and A Sharp are in charge of the supply and sale of its products in Korea.

But the Korean market is missing out, because official Apple Store service is much more comprehensive and convenient. For example, well-trained staff inform visitors on how to better use their products, and the Genius Bar provides convenient after-sales service. At present, 250 Apple Stores are found in the United States alone and approximately 420 worldwide. Even Zimbabwe has one.

“This is because the Apple headquarters applies very strict requirements to Apple Store candidates,” said an industry insider, adding, “According to the marketing division, an Apple Store has to be set up in a very busy street with as much floating population as in Gangnam and Myeongdong. But the rent should be low, and such a place is hard to come by in Korea.”

Apple’s stinginess in Korea is not limited to Apple Store installations, though. Apple is providing various services such as its App Store, music, TV, movie, books, iTunes Match, iTunes Radio, and missing phone location. However, only the App Store is available for Korean customers. Some say that this is due to the language barrier, but most of these services are available in Japan.

Apple’s share in the Korean smartphone market is below 5 percent as of the end of the second quarter of this year. However, it maintains sales of over 2 trillion won (US$19 billion) here thanks to the high popularity of iPads and Macs. Its sales in Korea, in addition, are expected to reach 3 trillion won (US$2.85 billion) after the release of the new iPhones. When it comes to Apple’s per-capita sales, Korea is the company's most important market. Attention is being paid to when Apple is going to take proper care of Korean customers.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution