The negative consequences of Apple to disallow iPhone users to buy music, movies or books through iTunes include encouraging more piracy instead, and also losing of potential customers.
When Apple disallows iPhone users to buy music, movies or books through iTunes, their primary aim is to actually prevent piracy. However, with that rule, it created more opportunities and excuses for more piracy. This is because when people was not able to buy music, movies or books through iTunes, they will tend to get it elsewhere, as they might find it a chore to buy it at the store. With that mindset, they might get the music by pirated ways, which will defeats the purpose of Apple. For example, my brother wanted to buy movies from the iTunes, however, when he learnt that Apple does not sell movies online, he decided to torrent it instead and sync to his iPhone. Thus, it would encourage more privacy.
It was also quite straightforward that Apple might lose potential customers. When the iPhone users were not able to buy music, or movies from iTunes, they might look for other sources, and could probably turn in to other company which offers online purchasing of music. Apple had recently fallen below a $300B market capitalization for the first time in 2011. This proved that Apple’s customers was decreasing and lose out to other leading companies. Mobile advertising network Millenial Media had also announced that Android phones had outsold iPhone and that Android is getting a lot of attention from advertisers. This also showed that Apples is losing out to other leading smartphone companies, and lose a lot of potential customers.
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