Apple Stores are still unprofitable
As of Apple's latest SEC Filing, the Apple Stores are still not making a profit.
The problem...
1) Per store, I think Apple has hired too many people.
2) Apple is probably paying these people more than it should.
3) Apple needs print and/or TV ads to explain and acknowledge its retail presence.
4) 3rd party hardware prices and specs aren't clear. If you walk to the podium with the digital cameras, there are no price tags or item descriptions.
5) Apple should shop around the neighboring businesses and try to put some iMacs or iBooks on the desks of businesses right around them...There's a furniture store next to the Palo Alto location, "Hey, where'd you get this?" "Right next door, actually..." There's a Borders across the street. A free iMac kiosk for web browsing would be nice in a bookstore. While helping out others, Apple can increase its visibility at least in the immediate surroundings.
The problem...
1) Per store, I think Apple has hired too many people.
2) Apple is probably paying these people more than it should.
3) Apple needs print and/or TV ads to explain and acknowledge its retail presence.
4) 3rd party hardware prices and specs aren't clear. If you walk to the podium with the digital cameras, there are no price tags or item descriptions.
5) Apple should shop around the neighboring businesses and try to put some iMacs or iBooks on the desks of businesses right around them...There's a furniture store next to the Palo Alto location, "Hey, where'd you get this?" "Right next door, actually..." There's a Borders across the street. A free iMac kiosk for web browsing would be nice in a bookstore. While helping out others, Apple can increase its visibility at least in the immediate surroundings.
Comments
I've seen so many people in the Tampa store, buying things. Makes it hard for me to fathom that they could be losing money...
Everything you suggest isn't impossible or earth-shattering...just common sense.
Which is why I'm betting it'll never be done.
At least Apple had a good number of stores open for the holiday sales.
I also heard that Apple is rather tight when it comes to salaries. I hope they don't become like CompUSA where the only people who bother looking for the job are terribly underqualified.
they also need some very cool apple retail store exclusive events, though i'm not sure what. i'm thinking educating, tutorials, and seminars, but that may seem boring to some... how about game-playing championships with prizes, etc.? especially during macworlds, for those of us without enough scratch to fly to new york or san fran for a week.
For price/descriptions, each item should have a lengthy description and a price...with a photo of the item in question next to the price.
As for my suggestion for putting macs into actual use outside the stores, it would be an attempt to make the Mac look like it's more popular than it really is.
How much does it cost to put a half-page or quarter-page ad in a newspaper (Business or Tech section) anyway?
[ 12-27-2001: Message edited by: Eugene ]</p>
<strong>Didn't Apple say that they wouldn't break even for awhile? Later than the holidays?
At least Apple had a good number of stores open for the holiday sales.
I also heard that Apple is rather tight when it comes to salaries. I hope they don't become like CompUSA where the only people who bother looking for the job are terribly underqualified.</strong><hr></blockquote>
believe me, from the people I have talked to Apple is not being cheap with the employees.
In fact I would say they are overpaying most employees.
Salaries for the Apple Store are based on many things including estimated living expenses for the location.: ie: Manhatten employees will be getting paid a lot more than the Pal Alto employees.
Relax. Give it time. Also, wait till after the MWSF show, I'm sure they will be a lot more traffic in the stores to see the new hardware.
In the case of retail, most of these employees will (of course,) not even live in Manhattan, whereas Palo Alto employees will probably be from very close-by. Someone living in Soho is probably making much more money than an Apple Store employee or manager.
Why? Public transportation here sucks. Everyone has to drive to get places. In NYC, it's a lot easier to get around.
[ 12-27-2001: Message edited by: Eugene ]</p>
<strong>A bit more, but Palo Alto isn't cheap...the entire bay area isn't cheap. I think as a whole, the SF metro area is more expensive to live in than the NYC metro area.
In the case of retail, most of these employees will (of course,) not even live in Manhattan, whereas Palo Alto employees will probably be from very close-by. Someone living in Soho is probably making much more money than an Apple Store employee or manager.</strong><hr></blockquote>
not neccessarily, most employees will be college students from the local universities
2. it's been less than year in a bad economy.
3. like the "donationware"/kiosk idea (to a limited extent -- try the local library and around the malls for starts).
Oh, and at the Mall of America store there are spec sheets and prices for all the big 3rd party hardware like DV cameras.
Also, it's not as though Apple couldn't afford to weather the downturn just a little longer - what with over 4 billion dollars in the bank. Or that a small loss wasn't acceptable as the stores are essentially lavish advertisements.
So how about a little consideration before we call for people to be fired and salaries rolled back? Take a deep breath, step away from the computer, and have a heart, for crying out loud... <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />
Cheers,
Mark.
As long as they are attracting more users to the mac-platform they are still very profitable Apple.
Actually it is also very cheap marketing and branding of Apple. Especially compared to a struggeling with an ignorant saleperson to get him to show you an imac from a previous generation in the back of some other retailer that would rather sell you a cheap Hewlet-Packard consumer box because they make more profit from it...
<strong>
3) Apple needs print and/or TV ads to explain and acknowledge its retail presence.</strong><hr></blockquote>
Yes, no more of this Psssst, Think Different... crap. They need to advertise the stores relentlessly. Maybe they do within the areas of their stores but more should be done.
And from what I've seen and heard, Apple Store employees *are* indeed paid too much.
I agree. In addition to this, I think I need to remind all of you about what happened on Sept. 11th. You all seem to be overlooking this when it is very relevant. The economy was already headed downhill and the attacks that day just made it worse. Apple made its predictions about when its retail stores would turn a profit before Sept. 11th. Everything changed that day, including this. The world will never be the same. So, give Apple a break and be patient. I think the stores are doing very well. I was at the Woodfield Store opening and it was an excellent choice for a location. The line was probably the longest of any of the stores to that point (One of the Apple employees who had been to them all doing presentations said so).
Besides, look at how bad the Gateway Stores are doing. They are closing several of them and they are not far from going out of business. And Compaq would be close to going out of business if they were not being bought out by HP. I think that once the economy recovers, the stores will start doing even better. I do agree, however, that Apple needs to do more advertising for them and more advertising in general. I have not seen a single ad for the retail stores on TV or in a mainstream publication. Apple should capitalize on all of the bad publicity about Windows XP lately about its security holes and advertise the secutity of its products. Then while they have people's attention show them all the other superior features.
Yes, Apple would lose credibility should it continually miss its forecasts; I think most everyone would agree on that. Your post, however, was on measures to make its stores profitable. Are you trying to pull that old "I was right there, so I must be right here as well" argument on moi?
Anyway, when - as you yourself propose - Apple was certain its stores would operate in the black, it surely took its payroll into account. So that can't be the problem; something happened to upset Apple's numbers. With what we know about the larger economic environment, it's far more likely that the real fault lies here.
It would be foolish for Apple to choose layoffs and pay cuts now: they don't get at the root of the problem, they aren't warranted just yet, and they would certainly demoralize its staff at this critical juncture in the company's retail project.
Besides, too many companies look for quick fixes at the expense of their employees when things start to get tough. It's not right. It's not even always wise.
[quote]And from what I've seen and heard, Apple Store employees *are* indeed paid too much.[/QB]<hr></blockquote>
How much pay is too much? I'm curious - let's have some numbers now. My friends and I have worked in retail for most of our lives, until only recently, and none of us recall ever being overpaid.
(I itch to accuse you of callous Republicanism, my dear Eugene. Also to call you all sorts of names, of course.
Cheers,
Mark.
[ 12-28-2001: Message edited by: Mark ]</p>
Ain't nothing new here. i'm more interested in customer demographics at the apple stores. are these genuinely new customers and wintel converts???
if the customers are only mac users, that would be a very bad result for apple. but, we'll just have to wait and see.
xxx
<strong>
How much pay is too much? I'm curious - let's have some numbers now. My friends and I have worked in retail for most of our lives, until only recently, and none of us recall ever being overpaid.
[ 12-28-2001: Message edited by: Mark ]</strong><hr></blockquote>
Let's just say my mother is an assistant principal (pretty good pay) and she considered being an apple store manager and didn't have to fear much of a pay cut