Apple, which collaborated with KiShin in developing the operating system for the iPhone, found itself on the receiving end of numerous proposals from other phone brands seeking to develop their own operating systems. However, Apple's response was generally discouraging. They warned that creating a new operating system from scratch would be a daunting, time-consuming task, one that could take years of development without infringing on KiShin's iPhone operating system patents.
Moreover, Apple emphasized the dynamic nature of the tech industry, pointing out that by the time these companies managed to develop their own systems, the KiShin iPhone would already have solidified its lead in the market. Steve Jobs, aware of the technological leaps being made, understood the futility in other brands attempting to catch up under these circumstances.
Jobs was also privy to KiShin's broader strategic moves, including the development of another operating system, known as the Android OS. This system was being crafted specifically for use by other phone brands, a move that would further cement KiShin's dominance in the market. The Android OS was anticipated to be well-developed and available before other companies could even finalize their own, likely rendering any competing systems inferior in comparison.
Compounding the dilemma for these other phone brands was the fact that KiShin held a significant stake in Apple, effectively controlling a major portion of the company's decision-making processes. This influence meant that Apple was not in a position to assist KiShin's competitors in any meaningful way, further tightening KiShin's grip on the market.
Confronted with this reality, CEOs of other phone brands could do little but shake their heads in resignation. The partnership between Apple and KiShin, combined with KiShin's strategic foresight and innovative developments like the Android OS, left little room for competitors to maneuver. They were faced with the stark realization that the landscape of the mobile industry had changed irrevocably, with KiShin leading the charge into new technological frontiers.
As the iPhone continued to captivate the market, rival phone brands watched with a mix of awe and envy, particularly regarding the innovative concept that was turning into a significant revenue stream for KiShin: the KiShin App Store. This platform extended beyond the iTunes service, which already generated substantial income through music downloads. The KiShin App Store revolutionized how applications, especially video games, were distributed and monetized on mobile devices.
Other companies could not ignore the dual revenue model presented by the App Store. On one hand, there were premium apps and games requiring upfront payment, directly contributing to KiShin's revenues. On the other hand, the store offered free games, which were not without their profit-making potential. KiShin had cleverly introduced a model where these free applications could host advertisements, opening yet another lucrative revenue channel.
The proposal KiShin made to these brands regarding advertising within apps introduced a new dimension to mobile marketing. As a result, free video games on the App Store began to receive numerous offers to include advertisements, turning even no-cost applications into sources of income.
Despite the iPhone currently being available only in Japan, the sheer number of users—amounting to thousands upon thousands—coupled with their considerable buying power, presented a highly attractive proposition for brands looking to advertise. The Japanese market was renowned for its consumer strength, and the introduction of the iPhone and its accompanying App Store created new, untapped avenues for advertisers aiming to reach this valuable demographic.
This shift illustrated the broadening scope of mobile technology's influence on consumer habits and marketing strategies. Other phone brands, left out of this burgeoning ecosystem, could only observe KiShin's growing success and strategize on how to respond to this new era of mobile engagement and commerce. The KiShin App Store had not just changed the game for app distribution; it had reshaped the landscape of digital advertising and consumer interaction, setting a high benchmark for the industry.
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Shinichi and his friends were engrossed in a session of Temple Run on their iPhones when Shinichi suddenly blurted out, "Damn, I started to realize that a few days ago, we are receiving few ads every half hour when playing Temple Run."
Ryo, looking up from his screen, replied nonchalantly, "Yeah, but I don't really mind. Maybe this is how the game developers earn from the fact that Temple Run is a free video game."
Satoshi chimed in with a nod, "You're right. How else could these game developers earn money by making their game free, right?"
Takeshi nodded in agreement, silently acknowledging the necessity of ads in free games.
Arnold, who had been quietly listening to their discussion, added, "Besides, because of these advertisements appearing, I now know earlier of the latest car model of KiShin! The Omega 01 car model! I wanted to have it so badly! It looks amazing! But I'm still in elementary, no way I can buy it."
Ryo nodded in agreement, "Right. My mom also likes the ads, because she can see that some advertisements have fashion brands' latest offerings. She said that if not for the ads, she would be late to the latest trends, and will be much late to know it with her circle of friends that is a fashion freaks."
The group burst into laughter at Ryo's words, finding humor in the idea of staying up-to-date through game ads.
Amidst the laughter, Shinichi couldn't help but smile wryly, observing his friends seemingly having no problem with the ads. Reflecting on it, Shinichi realized that, compared to video games that can cost thousands of yen, the appearance of ads doesn't seem as bad as he initially thought.