or Connect
AppleInsider › Forums › Mobile › iPhone › Selling 50% of iPhones through Apple's retail stores viewed as an unrealistic, lofty goal
New Posts  All Forums:Forum Nav:

Selling 50% of iPhones through Apple's retail stores viewed as an unrealistic, lofty goal

post #1 of 88
Thread Starter 
Apple Chief Executive Tim Cook apparently hopes to sell as many as half of all new iPhones in the U.S. through his company's own retail stores, but a new analysis suggests that target may be unattainable.

Jersey


The company has recently begun a retail initiative in hopes of boosting sales of the iPhone at Apple Stores, rather than having customers obtain their handset through carrier partners or smartphone resellers.

One approach being attempted by the company has its retail employees talking to customers about upgrade opportunities if they bring in their iPhone to a Genius Bar for repairs. Currently, about half of all iPhones that need repair are serviced at a Genius Bar, and Cook would like to see sales figures match that share for Apple retail.

But Cook's goals may not be realistic, according to new data from Consumer Intelligence Research Partners, detailed on Wednesday by AllThingsD. That's because Apple's retail locations are already well-trafficked, and an influx of new sales may not be possible without a major increase in locations and employees.

"We don't see how their mostly jammed stores can handle more customers, sales associates and inventory," CIRP co-founder Michael Levin said to reporter John Paczkowski.

CIRP's latest data shows that the share of iPhones sold through Apple retail stores in the U.S. is currently less than 15 percent, having steadily declined from 20 percent since the launch of the iPhone 5 last September. About 30 percent of U.S. iPhones are sold through Apple's largest carrier partner, AT&T, while Verizon's share is just north of 20 percent as of June 30.

Apple's sub-15-percent share comes in third, while carriers T-Mobile and Sprint are clustered with retailer Best Buy at around 10 percent of iPhone sales.

CIRP also revealed that 90 percent of first-time iPhone buyers purchase Apple's smartphone at a carrier store or reseller ? not an Apple Store.

CIRP


Apple's hope is that driving iPhone sales through its own stores will increase the handset's "halo" effect, which drives customers to buy other products from the company. For example, CIRP's data shows that 52 percent of iPhone buyers at an Apple Store own an iPad, and 30 percent own a Mac laptop. In contrast, just 37 percent of iPhone buyers at a carrier own an iPad, and 20 percent have a Mac laptop.

To further its efforts to bring in more iPhone customers and sell them upgrades, Apple also plans to begin taking iPhone trade-ins at its retail stores. But Levin and CIRP aren't convinced that will work.

"We don't know, exactly, how Apple can realistically meet Cook's goals," he said.
post #2 of 88

You have to set unrealistic goals when networks are dumping iPhones. 

 

I remember reading in the Steve bio book, he wanted to setup Apple's own wireless carrier network. Apple should do that (I am not telling seriously. But hoping seriously)

post #3 of 88

A good point. If the stores are jam packed how can they increase sale?

post #4 of 88
Making physical stores seen as an unrealistic, lofty goal.
Making a phone seen as an unrealistic, lofty goal.
Making a tablet seen as an unrealistic, lofty goal.
Making a music player seen as an unrealistic, lofty goal.
Making vertically integrated computers seen as an unrealistic, lofty goal.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #5 of 88
Poor Apple. So many customers in their stores already, they can't possibly fit any more in the door. Obviously they're doomed.
post #6 of 88
Quote:
Originally Posted by Tallest Skil View Post

Making physical stores seen as an unrealistic, lofty goal.
Making a phone seen as an unrealistic, lofty goal.
Making a tablet seen as an unrealistic, lofty goal.
Making a music player seen as an unrealistic, lofty goal.
Making vertically integrated computers seen as an unrealistic, lofty goal.

More importantly, there's no evidence that Apple has EVER stated a goal of selling 50% of iPhones through its retail stores. This is just another example of someone making up some silly claim, pretending that it's Apple's goal, and then claiming it's unrealistic.

Once again, someone needs to track the accuracy of these analysts and ignore the ones who are always wrong (which is about 90% of them).
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #7 of 88
Quote:
Originally Posted by matrix07 View Post

A good point. If the stores are jam packed how can they increase sale?

 

There were jam packed before the holidays, I have seen around 80% traffic decrease since then at the one near my workplace.. They will really need to come up with something big to make people drive extra miles just to buy an iphone. IF the carriers are selling at the same price, why would someone go to a more distant Apple Stores?

 

Taking trade is is a good idea, but not enough imo. And they cant start a price war with the carriers imo. They dont have to make them buy it there, they just need to make them come to a store at some point after the sale. So they could give something once the sale is made at a reseller, like a free case.


Edited by herbapou - 7/17/13 at 6:54am
post #8 of 88
Quote:
Originally Posted by jragosta View Post


More importantly, there's no evidence that Apple has EVER stated a goal of selling 50% of iPhones through its retail stores. This is just another example of someone making up some silly claim, pretending that it's Apple's goal, and then claiming it's unrealistic.

Once again, someone needs to track the accuracy of these analysts and ignore the ones who are always wrong (which is about 90% of them).

 

You doubt Tim Cook comments but you dont take 5 secs to google it? 

post #9 of 88
They need to get more Apple Stores out there. Outside of Toronto and Montreal, you can practically count the number of Apple Stores in Canada on two hands. They should have one in every 100 000+ population centre, maybe even more. At the very least do each provincial/state capital.
post #10 of 88
Just because the analysts can't see how doesn't equal to it being impossible. Many of the stores aren't jammed all the time. Not everywhere is like 5th Avenue etc

These comments are more of the same games to drive down the stock a bit so they can buy low before the next iPhone etc come out. It's gross

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #11 of 88
More media D&G, just like the stupid Seeking Alpha piece that an unannounced product (iWatch) is a "debacle" because Apple doesn't spend enoug on R&D. Or Bloomberg running with a rumor today that the next iPhone is going to be delayed because Apple decided at the last minute to change the screen size. Of course the media puts all this FUD out the week before earnings to effect the stock price.
post #12 of 88
Quote:
Originally Posted by matrix07 View Post

A good point. If the stores are jam packed how can they increase sale?
Are the stores really jam packed all the time? I kind of doubt. My local store isn't always super busy.
post #13 of 88
Quote:
Originally Posted by herbapou View Post

And they cant start a price war with the carriers imo.

But what they can do is change up contracts so the carriers etc can't do wild and crazy discounts, trade ins or even sell in their stores if its within x distance from an Apple store. But these are rather jerk moves so they won't likely come, at least not at first. Although if this budget phone is real I won't be shocked if its only at their own stores. No third party.

Given some of the crap I've seen and heard about carrier purchases like not belong told about apple care, no returns even the next day etc, I wouldn't be bothered if the carrier stores were cut from selling iPhones.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #14 of 88
I am hoping the plastic-looking iPhone we've been seeing is designed to be sold without operator contracts and THAT is how such a goal could be accomplished. I am hoping the Moto X is the same way and we will have big competition in the no-contract space. 1biggrin.gif
post #15 of 88
Quote:
Originally Posted by Brian Ward View Post

I am hoping the plastic-looking iPhone we've been seeing is designed to be sold without operator contracts and THAT is how such a goal could be accomplished. I am hoping the Moto X is the same way and we will have big competition in the no-contract space. 1biggrin.gif

 

imo they will still be sold with contracts in countries that allows it. So probably free with contract.  In my case, with the contract moving from 3 years to 2 years with a huge price increase, I will buy my next phones unlock for sure and go take a cheap Virgin mobile package. My wife is paying $35 a month with an unlock phone while I pay $75 a month for my 4s. With the contract duration change, by package will be over $100/month. And to top it off, if my wife doesnt used her data plan, she only pays $25/month for those months.


Edited by herbapou - 7/17/13 at 7:10am
post #16 of 88
I live in Oklahoma and there are only 2 in the state, one in Tulsa and one in Oklahoma City. The OKC location is closest to me but between here and there, there are about 3 At&t Corporate stores, 3 Wal-Mart%u2019s and 2 Best Buys on my direct route. I've always purchased my iPhones from Apple until the 5 and that time I went to a BestBuy. It was SOOOO much more convenient and quick. The Apple store is always packed and appointments always run 10-15 behind... always.

So please tell me why I should go out of my way for the same product. The iPhone is just simply available at too many locations for this to be achieved. What I find humorous is that they started selling at other outlets to sell more iPhones %u2013 they can%u2019t have the cake and eat it too.
post #17 of 88
Analysts also doubted Jobs 1% market share of all cell phones when the iPhone was announced. Not saying 50% is possible, but dont doubt Apple.
post #18 of 88
I love Apple Store and everything, but on an average weekend in the Chicago burb, there were twice as many Apple reps than people looking at Apple products.

I'd love to have an Apple store in every neighborhood, but to have that many Apple reps in every store just does not make any sense.
post #19 of 88
Quote:
Originally Posted by Rogifan View Post

More media D&G, just like the stupid Seeking Alpha piece that an unannounced product (iWatch) is a "debacle" because Apple doesn't spend enoug on R&D. Or Bloomberg running with a rumor today that the next iPhone is going to be delayed because Apple decided at the last minute to change the screen size. Of course the media puts all this FUD out the week before earnings to effect the stock price.

 

That is true.  Lots of Bs going on right now. EPS estimates are very low at $7.3 and even the whisper number is just $7.5 That is a pretty big YoY decline priced in. Lets hope Apple can top that even with no new products since the end of last year.

 

ok, wow, the whisper number is now even lower at $7.43   Its the first time I have ever seen those 2 numbers so close, expectations are rock bottom. We need to pay attention to Verizon numbers tomorrow and compare iphone sales to last year, same quarter.


Edited by herbapou - 7/17/13 at 7:21am
post #20 of 88

This seems like faulty reasoning at best and based on very limited information.  A lot of those people "jamming" the stores are just there to check out the products.  If there was a cheap available iPhone that they could quickly buy and walk out of the store with, they certainly might do that.  There is no need to assume that *new* customers buying the phones need to *also* jam into the same store.  

 

If Apple did come out with a cheap off-contract phone (looking far less likely now I know), that people could just pick up and buy and walk out again, that would also change the entire equation.  If they even went back to their previous practice of allowing people to activate them at home by themselves that would likely boost store sales tremendously.  

post #21 of 88
Quote:
Originally Posted by winstein2010 View Post

I love Apple Store and everything, but

How to tell that the rest of the post is nothing but utter lies, Alex!

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #22 of 88
Quote:
Originally Posted by herbapou View Post

That is true.  Lots of Bs going on right now. EPS estimates are very low at $7.3 and even the whisper number is just $7.5 That is a pretty big YoY decline priced in. Lets hope Apple can top that even with no new products since the end of last year.

ok, wow, the whisper number is now even lower at $7.43   Its the first time I have ever seen those 2 numbers so close, expectations are rock bottom. We need to pay attention to Verizon numbers tomorrow and compare iphone sales to last year, same quarter.
Everyone and their brother knows this is probably going to be a meh quarter. No matter what Apple announces the stock will tank after hours. If its better than estimates the media will say big deal, not hard to beat such low expectations. If its not, then the Apple is doomed meme will be in full force and we'll get more calls for Tim Cook to step down.

Incidentally, how come the big 3 (Verizon, AT&T and Sprint) only specifically report iPhone activations? Why don't they ever report how many Samsung, Motorola, HTC, etc. phones they activated? They should have this information, no?
post #23 of 88
Quote:
Originally Posted by jragosta View Post


More importantly, there's no evidence that Apple has EVER stated a goal of selling 50% of iPhones through its retail stores. This is just another example of someone making up some silly claim, pretending that it's Apple's goal, and then claiming it's unrealistic.

Once again, someone needs to track the accuracy of these analysts and ignore the ones who are always wrong (which is about 90% of them).

 

Partly true...

 

http://lmgtfy.com/?q=tim+cook+50%25+iphone+sales+through+retail

post #24 of 88
Quote:
Originally Posted by herbapou View Post

 

There were jam packed before the holidays, I have seen around 80% traffic decrease since then at the one near my workplace.. They will really need to come up with something big to make people drive extra miles just to buy an iphone. IF the carriers are selling at the same price, why would someone go to a more distant Apple Stores?

 

I think the goal was to try to encourage new purchases when people bring their iPhones to the Genius Bar. 

 

Makes perfect sense.

 

50% is probably unrealistic, but isn't this an internal goal, and not one that Cook announced to investors (unlike Jobs' 1% goal)?

post #25 of 88
Quote:
Originally Posted by herbapou View Post

You doubt Tim Cook comments but you dont take 5 secs to google it? 

I did - and there's no evidence that Cook says that he wants 50% of iPhone sales from Apple stores.

He cited the percent of sales of iPhones in Apple stores and the percent of repairs done in Apple stores (reportedly close to 50%) and said that he'd like to see those numbers more in line. That is NOT a claim that he expects 50% of iPhone sales to come from Apple stores - just that he expects the percentage to increase.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #26 of 88

I can drive two miles to my AT&T store and walk out with a working iPhone (and "trickle down" my phone through the other phones on my family plan). Or I can walk into Apple's store 35 miles away and be told I have to make an appt to come back three days later. FAIL!  I avoid Apple stores as much as I possibly can. If Tim really wants me to buy from an Apple store, we need more of them (closer to home like the AT&T stores) and I need to be able to walk in, get my device quickly, and walk out.

post #27 of 88
Quote:
Originally Posted by jragosta View Post


I did - and there's no evidence that Cook says that he wants 50% of iPhone sales from Apple stores.

He cited the percent of sales of iPhones in Apple stores and the percent of repairs done in Apple stores (reportedly close to 50%) and said that he'd like to see those numbers more in line. That is NOT a claim that he expects 50% of iPhone sales to come from Apple stores - just that he expects the percentage to increase.

 

Even that qualification of the story may not be exact, because it was an internal talk. Could be totally made up for all we know. 

 

Carriers have shops in every village, small towns and every second street in Cities here in Ireland. Apple have the exact total of 0 stores. I can't see this working. 

 

In any case, what did Cook mean? Carriers are not going to repair iPhones. Where would he expect iPhone users to get their stuff fixed? 

I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #28 of 88
One word: Advertising
The idea needs to be planted in peoples minds..."If you are going to buy an iPhone, you should go to an Apple store."
post #29 of 88
Quote:
Originally Posted by rhyde View Post

I can drive two miles to my AT&T store and walk out with a working iPhone (and "trickle down" my phone through the other phones on my family plan). Or I can walk into Apple's store 35 miles away and be told I have to make an appt to come back three days later. FAIL!  I avoid Apple stores as much as I possibly can. If Tim really wants me to buy from an Apple store, we need more of them (closer to home like the AT&T stores) and I need to be able to walk in, get my device quickly, and walk out.

 

Since when do you have to make an appointment to buy something at an Apple Store?

post #30 of 88
Quote:
Originally Posted by Johnny Mozzarella View Post

One word: Advertising
The idea needs to be planted in peoples minds..."If you are going to buy an iPhone, you should go to an Apple store."

Get on a plane and fly. 

I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #31 of 88

I'd bet if Tim did say this, he said it in the context of cheaper iPhones. He is not going to offer the cheaper iPhones exclusively to Apple stores but will probably hope many are bought there ( which increases margins as they get the retail margin as well of course). So a bit of marketing. 

 

Nothing to see here, except unless they build lots new Stores it isn't going to work worldwide.

I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #32 of 88
Quote:
Originally Posted by rhyde View Post

I can drive two miles to my AT&T store and walk out with a working iPhone (and "trickle down" my phone through the other phones on my family plan). Or I can walk into Apple's store 35 miles away and be told I have to make an appt to come back three days later. FAIL!  I avoid Apple stores as much as I possibly can. If Tim really wants me to buy from an Apple store, we need more of them (closer to home like the AT&T stores) and I need to be able to walk in, get my device quickly, and walk out.

 

Umm...  I've NEVER had to make an appointment in an Apple Store to make a purchase. Outside of some rare, special circumstance, I'll bet no else has ever had to do that either - EVER.

post #33 of 88
That will never happen!! The Apple Stores are the worst shopping experience in my life!! I absolutely hate having to go there and will never go to buy anything!! I can't be the only one who feels this way!!
So feather than subject myself to that I can go to AT&T's website push a few buttons nd the phone arrives on my doorstep!! Seems like the way to go to me!
post #34 of 88
Quote:
Originally Posted by captmark View Post

The Apple Stores are the worst shopping experience in my life!! I absolutely hate having to go there and will never go to buy anything!! I can't be the only one who feels this way!!

Walk in. Pick up what you want. Go to a blue shirt. Check out.

Alternatively, iOS Apple Store app. Find what you want. Pay for it. Walk into the store. Take thing. Walk out. It's like stealing, but legal.

People are going to have a very difficult time believing you.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #35 of 88
Quote:
Originally Posted by captmark View Post

 I can go to AT&T's website push a few buttons nd the phone arrives on my doorstep!! Seems like the way to go to me!

Well yeah, if you are buying an Android phone, by all means order it online from AT&T. If you are buying an iPhone, why not use the Apple.com store? It will be on your doorstep in a day or two just like any other online purchase. Besides I always buy Apple Care+ so that would be easier from Apple I would imagine, although I have never shopped at AT&T so I don't know if they even offer Apple Care+.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #36 of 88
Here's a thought. Open Apple iPhone Stores. A pared-down, perhaps even kiosk-sized version of an Apple Store that deals solely with phones. No Genius Bar, no repair, no classes–those get referred to nearest full-service store. Just a small sales force and a few select accessories.
A.k.a. AppleHead on other forums.
Reply
A.k.a. AppleHead on other forums.
Reply
post #37 of 88

Don't necessarily need more space when you are looking to take better advantage of the traffic that's already there. 50% of phone problems handled at Genius Bar along with existing traffic...

post #38 of 88
Quote:
Originally Posted by mstone View Post

I have never shopped at AT&T so I don't know if they even offer Apple Care+.
I'm the opposite. Have always gotten my phones at AT&T. We have a family plan with three members, and we do the "upgrade shuffle" with me always getting the latest phone when one our three staggered plans becomes eligible for upgrade. This involves shifting phones/accounts around as everyone in the family moves up one level phone. In the past this tended to flummox Apple Store employees. AT&T staff handles it more deftly. If Apple could deal with carrier plans better I would buy from them.

Edit: I should add that my local AT&T store is much closer and opening day lines shorter. Mini-stores as suggested above would solve this.
A.k.a. AppleHead on other forums.
Reply
A.k.a. AppleHead on other forums.
Reply
post #39 of 88
Quote:
Originally Posted by Robin Huber View Post

This involves shifting phones/accounts around as everyone in the family moves up one level phone. In the past this tended to flummox Apple Store employees. AT&T staff handles it more deftly. If Apple could deal with carrier plans better I would buy from them.

Can't you just take the sim card out, switch it, and restore, sync from a backup or iCloud? After two years AT&T will unlock your phone.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #40 of 88
Quote:
Originally Posted by mstone View Post

Can't you just take the sim card out, switch it, and restore, sync from a backup or iCloud? After two years AT&T will unlock your phone.

Unless, of course, your family has iPhone 5, 4s, 4, and 3g models. The sim cards (don't yet) float down the line. It does require some intervention from AT&T.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
  • Selling 50% of iPhones through Apple's retail stores viewed as an unrealistic, lofty goal
AppleInsider › Forums › Mobile › iPhone › Selling 50% of iPhones through Apple's retail stores viewed as an unrealistic, lofty goal