This is the result of most "bean counter-led" corporate takeovers. Since Jobs died, I expect to see greed-based, MBA-type revisions to the company culture. As if Apple is not making enough money or profits already, the MBAs come in and screw up the vibe of many companies when the original owners sell out of change hands. This will be the start of the end for Apple if this is allowed to continue.
I think this is a good move by Apple as they will save loads of money in the end. Most sales are made online anyway, so its not a problem.
Save money to what end? This is such a highly profitable company as it is. Your comments represent the worst in corporate thinking and is what drives companies to ruin. Greed über alles! No way!
I think this is a good move by Apple as they will save loads of money in the end. Most sales are made online anyway, so its not a problem.
Hopefully, your anticipation of a wholesale shift to online retail will pan out.
But I see a lot of consumers in Apple Stores. Packed to the rafters. It's just so convenient to drop in and get answers, general help, etc. There's that "human touch" that apparently is more in demand then ever. We're not talking about a shift from optical to digital media here. The Store experience has been, and by all visible accounts remains, key to the Apple Experience.
And if Apple is no longer interested in perfecting the art of the Apple Experience, then that's a key differentiator gone down the drain. Apple is special because they do what everyone else isn't willing to do, what they can't be bothered to do.
A short-term gain in revenue? Probably. But real *vision* takes a long-term view. And long-term, Apple needs to maintain that feeling (and it *is* a powerful feeling) of specialness to the consumer. The feeling of the unexpected, pleasant surprise. That rare set of values that Apple takes and communicates to the consumer.
I can certainly understand scaling back the overall retail store presence in light of increasing online sales. That's fine. *But what happens when consumers are still exposed to these stores that are still out there?* What happens then? Will it still be a great impression or a lousy one? There is no point in half-assing *any* aspect of your public face.
Time will tell, but I don't like seeing news like this. I'm not a fan of departing from the overall Jobsian approach. It WORKS. It *has* worked, and the ideas are TIMELESS. Apple needs to stick with them. We don't need a great company turning into the likes of HP or Dell.
I don't think this new guy gets it: Apple doesn't just sell a product, it sells a great customer experience. Everybody at that company knows that is how it works, and it is amazing that they are letting this guy go forward with this plan. Maybe they are a little overcrowded (I've felt the opposite most of the time) with employees, but Apple has made a lot of money primarily by focusing on the experience and not the bottom line.
Exactly. Provide a good customer experience, and customers will keep coming back - thereby improving long-term revenue. Cut the experience to improve short-term revenue, and your customers get angry and disgruntled.
The whole point of Apple Stores, to me, is the unique shopping experience. The more that gets watered down, the less value the stores add to the brand.
(And BTW, why the focus on revenue over experience anyway? Apple's not exactly hurting for cash...)
Browett must have had SOMETHING going for him to get hired. I can’t imagine what. Something big enough to offset the recent apparent blunders? (Which I have no reason to doubt happened.)
Well, not something big enough to keep him on if he can’t get over the “focus on revenue” thing. No third chance! I can’t see how he’ll remain at Apple unless a lot of these stories are simply not true. (And that is possible, but they smell true to me.)
I think this is a good move by Apple as they will save loads of money in the end. Most sales are made online anyway, so its not a problem.
I’m sure Browett would point to that fact too—I don’t dispute it. But a LOT of those sales are to people who visited Apple stores in their decision-making process. Still others are sales to people who will get more from their machine because they had an Apple Store to rely on during ownership—which in turn impacts future sales directly. And indirectly: happy customers spread word of mouth, online and in person alike. Plus, we have stats on how heavily the stores sell to first-time Apple users. Invaluable customer-base expansion. Mindshare, not just revenue per square foot.
Recent years have shown how vital the quality Apple Store experience has been to Apple.
Agree - the Apple Stores, IMHO, are foremost a living, ongoing advertisement for Apple. Walk in a store, play with the models, soak up the vibe. Frankly, again IMHO, I think they could be nothing more than Apple play-centers with no sales, and *still* be a net benefit to the company. Trying to screw down expenses and ruin the experience in the name of "revenue" negates the whole point of the stores. IMHO.
Agree - the Apple Stores, IMHO, are foremost a living, ongoing advertisement for Apple. Walk in a store, play with the models, soak up the vibe. Frankly, again IMHO, I think they could be nothing more than Apple play-centers with no sales, and *still* be a net benefit to the company. Trying to screw down expenses and ruin the experience in the name of "revenue" negates the whole point of the stores. IMHO.
I don't quite know how Apple wants to play it, so I'm ignorant of any potentially refined strategy that may be behind this, but on the face of it, it looks like the classic short-term gain, long-term loss game. Apple's name alone is only so good for so long with less behind it. Eventually it all comes down to how your products and services make customers feel. Give them a lousy experience in-store, and they'll remember that.
A garden has no room for weeds.
Agree with every point. But ifoapplestore is the most solid source of info on Apple Stores that I know of.
I was unaware of the ifoapplestore site. It is curious that AI did not link to it... they just mentioned it in the article.
I read the article at ifoapplestore, and it too is unsourced. Though, I can see how some of what they say may be true.
My personal opinion is that the Apple Retail Stores were started to showcase the "Apple Way" which includes first class products and first class customer support. This was the only way to get the Apple story told in a world of commodity Windows boxes marketed by big box retailers.
They have been successful, and with Apple, now are on the cusp of dominating the evolving post-pc environment.
At some point, the bragging point: "50% of retail Mac sales were to a first-time Mac user" will go away as Mac's acceptance grows. Also, the "business" has changed in that the big opportunities (and profits) are in iPhones and iPads -- so new Mac sales are relatively less important -- and will continue to be so as the distinction between "Trucks" and "Cars" blurs.
What I am saying is that Apple retail must evolve with the times. If Apple "product quality" and "customer satisfaction" are widely known and appreciated in the marketplace, it may not be desirable to emphasize them as strongly (browbeat the potential customer) -- rather demonstrate them by handling every customer encounter: cordially and efficiently to the customer's satisfaction.
It may be that Apple can improve the level of service and customer satisfaction with fewer, better-trained and more highly-motivated retail employees. Apple can determine the number and skills required from the statics they gather -- use this as a base-case for staffing their stores.
Then, there are the [planned] unusual demands of new product launches, special buying seasons, holidays, etc. For many of these events, the best thing Apple can do is have enough employees available who can handle rapid and repeated customer purchases in a streamlined way. The customer who wants an iPad as a Christmas gift, likely, wants to get in and out as quickly and effortlessly as possible -- detail questions and training can be scheduled for another less-hetic day.
So, we have two diametrically opposed retail staffing requirements -- slow and thorough, and wham-bam (and a third, somewhere in between). I suggest to you, because of the iPhone and iPad, this is different than any other retail selling -- and quite different from when Apple retail stores only sold Macs, accessories and iPods.
This to me is the challenge Apple faces: improve the quality of service and customer satisfaction -- while doing this as efficiently as possible. I hope that this is what Apple is trying to do.
One, neat thing Apple could do is release their EasyPay Retail Store app on Android and Windows phones :)
This is the result of most "bean counter-led" corporate takeovers. Since Jobs died, I expect to see greed-based, MBA-type revisions to the company culture. As if Apple is not making enough money or profits already, the MBAs come in and screw up the vibe of many companies when the original owners sell out of change hands. This will be the start of the end for Apple if this is allowed to continue.
If what you say is true, we are very fortunate that Apple didn't go outside to hire a CEO -- rather they hired from inside:
Cook spent seven months at Compaq as VP for Corporate Materials before he was hired by Steve Jobs to join Apple in 1998. He initially served as Senior Vice President for Worldwide Operations.[2] Prior to that, Cook served as the chief operating officer (COO) of the computer reseller division of Intelligent Electronics and spent 12 years in IBM's personal computer business as the director of North American Fulfillment.[2]
Cook is credited with pulling Apple out of manufacturing by closing factories and warehouses around the world. This helped the company reduce inventory levels and streamline its supply chain, dramatically increasing margins.[9] In January 2007, Cook was promoted to COO.[10]
Cook served as Apple CEO for two months in 2004, when Jobs was recovering from pancreatic cancer surgery. In 2009, Cook again served as Apple CEO for several months while Jobs took a leave of absence for a liver transplant.
In January 2011, Apple's Board of Directors approved a third medical leave of absence requested by Jobs. During that time, Cook was responsible for most of Apple’s day-to-day operations while Jobs made most major decisions.[11] Following the resignation of Jobs, Cook was made CEO of Apple Inc. on August 24, 2011.[12][13]
Cook also serves on the board of directors of Nike.[3]
In April 2012, Time Magazine included Cook on its annual 100 Most Influential People in the World list.[14]
http://en.wikipedia.org/wiki/Tim_Cook
Nope, the new guy doesn't get it. And neither does the person that hired him. It's just one more little thing since Steve died. Sam Walton ran a tight ship just like Steve. When Sam died, the whole company went to hell. When was the last time an employee greeted you or smiled at Walmart?
I get a friendly greeting almost every time I go to Walmart.
Agree - the Apple Stores, IMHO, are foremost a living, ongoing advertisement for Apple. Walk in a store, play with the models, soak up the vibe. Frankly, again IMHO, I think they could be nothing more than Apple play-centers with no sales, and *still* be a net benefit to the company. Trying to screw down expenses and ruin the experience in the name of "revenue" negates the whole point of the stores. IMHO.
I don't quite know how Apple wants to play it, so I'm ignorant of any potentially refined strategy that may be behind this, but on the face of it, it looks like the classic short-term gain, long-term loss game. Apple's name alone is only so good for so long with less behind it. Eventually it all comes down to how your products and services make customers feel. Give them a lousy experience in-store, and they'll remember that.
A garden has no room for weeds.
First, we don't know if it is true.
Second, I agree, it does look like sacrificing the long-term benefits for short-term gains.
That is so antithetical to the way Apple does things -- and there is no need for short term revenue gains -- that I find it difficult, if not impossible, that Apple is doing what the article(s) say.
I can see Apple trying to evolve and streamline their Retail presence... but that is an on-going process.
Finally, Apple is going through a period of rapid and exponential growth -- This is the time where Apple must carefully monitor and control expenses... as it will be too late after the money is spent.
I agree with others that Apple sells more than physical devices. Also, many recall the challenges Apple had through the '80s and how today they do a wonderful job with technology and capability. As I recall from previous posts on this topic last week , Mr Browett's background includes a position at Dixon electronic stores. I have been in Dixon stores in different places in the UK and Europe and they are NOT the same as an Apple store. It is like going into a hobby shop store or Radio Shack (sorry RS). Lots of stuff with an obvious goal of just selling electronic stuff. No integration, just a collection of stuff. This should not "rub off on Apple". That would lead to less than anticipated vision and future growth for Apple.
So if these reports are accurate, I hope that Apple manages this correctly. There are a lot of really smart people at Apple indoctrinated in the culture of their success so this should be appropriately addressed. That culture results in good products that we all enjoy using. Let's hope for the best.
oh i have no doubt the theft thing is down to the resellers own store policy, but the pressure selling comes from apple without a doubt. i mean, if not, why would they want you doing it knowing they could get caught out by apple when they mystery shop the store?
if apple didn't agree with it the store would be in trouble. the manager said they're in trouble if apple finds out that they aren't selling enough extras. he told me that even though the stores are privately owned, they have to display and sell them how apple dictates or they'll lose their reseller status.
To be fair, that would have been my strong recommendation as well, and I'm not trying to sell you anything. Maybe the Genius has see how many iPads come back damaged, and for the $100 you know that there's no problem with repairs for the foreseeable future. I personally wouldn't buy an iPad without AppleCare, just like I wouldn't buy a Mac without AppleCare. Accessories and smaller items are fine without it, yes, but anything $400 it's worth it for the peace of mind.
This is all to say that it may not be as calculated or cynical as you think.
No, they've got quotas.
There's no question about it, I've seen the emails. And it's not a small percentage of sales that Apple demands AppleCare be sold with, and there are penalties for not meeting quotas.
To be fair, that would have been my strong recommendation as well, and I'm not trying to sell you anything. Maybe the Genius has see how many iPads come back damaged, and for the $100 you know that there's no problem with repairs for the foreseeable future. I personally wouldn't buy an iPad without AppleCare, just like I wouldn't buy a Mac without AppleCare. Accessories and smaller items are fine without it, yes, but anything $400 it's worth it for the peace of mind.
This is all to say that it may not be as calculated or cynical as you think.
No, they've got quotas.
There's no question about it, I've seen the emails. And it's not a small percentage of sales that Apple demands AppleCare be sold with, and there are penalties for not meeting quotas.
So we have a story with no named sources.and a post by DarkVader (a member with 56 posts) who states that the Apple Retail reps have quotas -- then confirms it by saying "I've seen the emails"... what's not to believe?
I'm certainly dumping my AAPL shares!
Wow, Steve just left the building and now this? April fools day? Hasn't Apple showed that good customer experience is what creates revenue? It's not the other way around. I remember the good Bernie Ebbers telling us employees the main goal of the company; share holder value. Stupid me who thought customer experience is what creates share holder value, not share holder value itself. Well, maybe Bernie has learned something since then that he can tell Apple?
One or two years from now when we have learned that the success story of the Apple Store came to an end, this is the moment we know it started. Apple needs to focus harder on customer experience (no, it's not good) and they can afford it. If they are turning into a company just like everybody else they're lost and this time Steve will not be back to save them.
One or two years from now when we have learned that the success story of the Apple Store came to an end…
Nonsense.
Yeah, look how well "metrics" (quotas) worked for Circuit City! Gosh, I only hope Apple can install more vultures selling me Macs who can keep their jobs only if they move product. That's the kinda of person that builds a lifelong bond between buyer and brand!
Idiots. What works is letting Apple sell itself. They're already selling tons per square foot. No reason to squeeze the blood from the turnip.
"I was in an Apple store today and they wouldn't give me a free replacement on my Macbook Pro battery, which was so swollen that the trackpad doesn't even work anymore. Yes, it's out of warranty,
"
Call Apple.
I had a battery issue (bloated so trackpad stopped clicking) with my late 2008 MBP 15" just a few months ago. They told me at the store that they can't do much with the battery that is over 3 years old. I called Apple, said that i have my computer always plugged in and the recharged cycles were only at around 200 (out of 500 allowed).
Eventually, they sent me a new battery and i sent them the old one. FREE.
I could not agree more. I'm not from the UK but Ive been around retail for a long time. THE first thing a new C level guy will do is look at employee expense when evaluating a store. I'll bet this guy had a heart attack when he looked at the numbers from a typical Apple store.
I just can't believe they'd hire a "retail guy" because their stores do not function as typical retail stores. They sell by being customer service oriented and if he had read any of the many books written about the Apple experience he would have know that. This is a mistake on par with the mistake HP made hiring Leo Apotheker.
He should go ASAP but I don't think Cook operates that way. SJ on the other hand would not hesitate, he understood that sometimes you get it wrong but always correct your mistakes as soon as possible.
But on the flip side, anyone who criticizes Apple's policies is usually met with responses like "Obviously so-and-so at Apple knows more than you and makes more money than you because you don't work there..." Why should things be any different with John Browett?
The words would have been more meaningful if they came from Browett himself, as in "I messed up". But I suppose he is too busy hiding behind his desk.
This might finally push me to making a platform switch to Microsoft Surface. … This is seriously bad news for consumers.
Really? Bad news, maybe… but not THAT bad, sorry...
How can it be that easy to push someone to MS + Surface…? A rumor of 'changes afoot' don't make the entire product line somehow and suddenly awful and unusable...
I'll be honest, I'm having difficulty swallowing this part: "hard to navigate the store because the number of Apple employees is greater than the number of customers." Hard to navigate FOR THAT SPECIFIC REASON? Really? Small store + huge people, or…? Which store was this? More staff than customers, I could understand... in a slower part of the day (although the Apple Stores I've visited are ALWAYS packed regardless of time or day…). But not SO MANY STAFF the store was difficult to navigate… nah...
And if there were fewer staff and more customers… what then? Hard to navigate because they are just too damned crowded? That is a growing problem at Apple Stores in general, but not because they're overstaffed...
Just saying, it sounds a bit disingenuous to me, that's all...
Umm, all the Tim Cook "haters"…? I don't see anyone expressing "hatred" toward Tim Cook here… There's no need to explain anything away.
This is the result of most "bean counter-led" corporate takeovers. Since Jobs died, I expect to see greed-based, MBA-type revisions to the company culture. As if Apple is not making enough money or profits already, the MBAs come in and screw up the vibe of many companies when the original owners sell out of change hands. This will be the start of the end for Apple if this is allowed to continue.
I wouldn't go blaming MBAs. I have one and I wouldn't cut staffing. You don't cut your sales staff when you have such a large surplus of cash you are having problems figuring out what to do with it.
Having said that, the experience in Apple stores at the moment is not a pleasant one. They don't have lines - instead there are clusters of people dispersed around the store waiting for assistance. Not everything should require an appointment at the Genius Bar or even speaking with a Genius. There need to be more people dedicated to helping walk-ins for simple tasks. As an example, I had to make an exchange of my iPhone 4S due to a backlighting issue on my screen. I was in the area at 3pm on a weekday and so I popped in. An hour and a half later my exchange was complete. That's simply ridiculous. Had I gotten it from Best Buy I would have been done in 15 minutes max. There's lots of room for improvement in the stores and it doesn't take a rocket scientist to figure out how to fix it. Hopefully, these rumors turn out to be false.
iPod, iPad, iPad2, iPad 3, iPad Mini, iPhone, iPhone 3GS, iPhone 4, iPhone 4S, iPhone 5, AppleTV (1,2 & 3), 13" MacBook Pro, 24" Cinema Display, Time Capsule, 21.5" iMac (Mid 2011)
iPod, iPad, iPad2, iPad 3, iPad Mini, iPhone, iPhone 3GS, iPhone 4, iPhone 4S, iPhone 5, AppleTV (1,2 & 3), 13" MacBook Pro, 24" Cinema Display, Time Capsule, 21.5" iMac (Mid 2011)
Anyone who has ever had their fries stolen by a friend would hate Tim Cook…
I can't believe I'm perpetuating that nonsense…
No, some people hated him because he's just an operations man, some people hate him for this new thing with the salesmen fiasco…
Having said that, the experience in Apple stores at the moment is not a pleasant one. They don't have lines - instead there are clusters of people dispersed around the store waiting for assistance. Not everything should require an appointment at the Genius Bar or even speaking with a Genius. There need to be more people dedicated to helping walk-ins for simple tasks. As an example, I had to make an exchange of my iPhone 4S due to a backlighting issue on my screen. I was in the area at 3pm on a weekday and so I popped in. An hour and a half later my exchange was complete. That's simply ridiculous. Had I gotten it from Best Buy I would have been done in 15 minutes max. There's lots of room for improvement in the stores and it doesn't take a rocket scientist to figure out how to fix it. Hopefully, these rumors turn out to be false.
Agree completely. Apple stores are often so crowded that it can be both confusing and difficult to get assistance and especially to make a purchase. And no way will I use their misnamed "Easy Pay" self-checkout app. I have a very low opinion of stores that are so darn cheap that they can't provide employees to handle customer checkout. When Apple stores first opened they had a register at the front where you could simply walk up and make a purchase. Although, after reading this article, I referred to John Browett as a moron in my comments above, perhaps he can make a positive contribution by solving this issue and actually providing an area where a customer can simply line up to make a purchase.
Though I have no knowledge of Apple's intentions here (just like everyone else) -- Apple's fault for being so secretive and allowing the void of information be filled with little more than opinions held out as the final truth -- Apple might be converting the low paying Apple Store part-time employees to more highly compensated/permanent employees. Apple has been criticized in the past for these employees' poor compensation especially given the Apple Stores' successes.
