Apple stores increasing focus on Windows stragglers
Apple's retail stores will begin courting Windows users with added finesse this spring, as new product launches from the company help pique interest in its Mac line of personal computer, one analyst says.
In the Wednesday edition of "Wolf Bytes," Needham and Co. analyst Charles Wolf explains a strategic shift in focus for the international retail chain, which was originally conceived to provide Macintosh users with a shopping experience that was superior to what they found in computer and consumer electronics chains.
"Their key priority is to convert Windows users to the Mac and grow Mac sales," the analyst wrote. Come the launch of Mac OS X 10.5 Leopard this spring, he expects "the stores to play a pivotal role in educating the hoards of Windows users" about the system's Boot Camp feature, which allows for Windows installations to coexist on a Mac.
Following the release of Leopard, Apple in June will roll out the iPhone, and again, Wolf says company stores will play an important role in signing up customers to this multimedia phone. "Unlike the iPod, whose distribution has become ubiquitous, the iPhone will be sold only in the Apple online and retail stores, along with CingularÂ?s carrier stores," he wrote.
In his report Wednesday, the Needham analyst also rationalized the recent performance of Apple's retail segment, which upon first glance appeared to turn in a dismal performance during the company's December quarter. He noted that while total visitors during the three-month period reached a record 28 million, visitors per store declined by 18 percent, reflecting the higher store count in the quarter.Â* Likewise, he said, record revenues of $1.14 billion translated into a 19 percent decline in same store sales.Â*
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"But looks can be deceiving," the analyst wrote. "The decline in same-store sales solely reflected a sharp decline in iPod sales.Â* Last year, the Apple Stores were the only reliable source for iPods. This year, iPods were available in 40,000 locations, mostly in the U.S. There was an inevitable decline in iPod sales at the Apple Stores, then, because of the rapid expansion of the iPodÂ?s distribution."
Wolf said better news for Apple retail came in the form of same-store Mac revenues, which rose by 25 percent to account for 47 percent of total store sales in December. That latter figure, he noted, is up from 30 percent during the same quarter one year ago.
In the Wednesday edition of "Wolf Bytes," Needham and Co. analyst Charles Wolf explains a strategic shift in focus for the international retail chain, which was originally conceived to provide Macintosh users with a shopping experience that was superior to what they found in computer and consumer electronics chains.
"Their key priority is to convert Windows users to the Mac and grow Mac sales," the analyst wrote. Come the launch of Mac OS X 10.5 Leopard this spring, he expects "the stores to play a pivotal role in educating the hoards of Windows users" about the system's Boot Camp feature, which allows for Windows installations to coexist on a Mac.
Following the release of Leopard, Apple in June will roll out the iPhone, and again, Wolf says company stores will play an important role in signing up customers to this multimedia phone. "Unlike the iPod, whose distribution has become ubiquitous, the iPhone will be sold only in the Apple online and retail stores, along with CingularÂ?s carrier stores," he wrote.
In his report Wednesday, the Needham analyst also rationalized the recent performance of Apple's retail segment, which upon first glance appeared to turn in a dismal performance during the company's December quarter. He noted that while total visitors during the three-month period reached a record 28 million, visitors per store declined by 18 percent, reflecting the higher store count in the quarter.Â* Likewise, he said, record revenues of $1.14 billion translated into a 19 percent decline in same store sales.Â*
Â*
"But looks can be deceiving," the analyst wrote. "The decline in same-store sales solely reflected a sharp decline in iPod sales.Â* Last year, the Apple Stores were the only reliable source for iPods. This year, iPods were available in 40,000 locations, mostly in the U.S. There was an inevitable decline in iPod sales at the Apple Stores, then, because of the rapid expansion of the iPodÂ?s distribution."
Wolf said better news for Apple retail came in the form of same-store Mac revenues, which rose by 25 percent to account for 47 percent of total store sales in December. That latter figure, he noted, is up from 30 percent during the same quarter one year ago.
Comments
Pushing boot camp is a good idea. That made me switch about two months ago. Funny thing is I don't miss windoze at all.
First post!! w00t!!
Pushing boot camp is a good idea. That made me switch about two months ago. Funny thing is I don't miss windoze at all.
Same here, installed Parallels, dumped it 3 months later and don't miss it at all.
JW
"But looks can be deceiving," the analyst wrote.
Wow. Could this be an analyst who actually looks beyond the surface?
First post!! w00t!!
Pushing boot camp is a good idea. That made me switch about two months ago. Funny thing is I don't miss windoze at all.
Only two months and you're already calling it Windoze
McD
Apple's retail stores will begin courting Windows users with added finesse this spring, as new product launches from the company help pique interest in its Mac line of personal computer, one analyst says.
..they don't walk through the doors first!
McD
Same here, installed Parallels, dumped it 3 months later and don't miss it at all.
JW
Could Boot Camp/Parallels be the Mac's first 'trojan' ??
McD
But I'd love to start quizzing the sales reps on their knowledge of Boot Camp and Parellels. Also, very excited to see if Apple will fully support (including fan drivers) for WinXP and Vista when 10.5 comes around.
I will always be a dual platform kinda guy... though truth be known, I spend a good 80% of my time in OS X.
The macpro starting at $2400 may be to much for most people and the mini has pos video and laptop parts.
and how do you get the windows users that have good Monitors that they do not want to give up over to mac?
The macpro starting at $2400 may be to much for most people and the mini has pos video and laptop parts.
What about the Mac Mini??? 600 dollars (way less if you buy refurb) seems fair
What about the Mac Mini??? 600 dollars (way less if you buy refurb) seems fair
What about those who want the ATI (or NVidia) chip for their windows stuff, and mac stuff too?
Why not get an iMac, and hook up your sweet monitor to that as an external 2nd display?
"But looks can be deceiving," the analyst wrote. "The decline in same-store sales solely reflected a sharp decline in iPod sales.* Last year, the Apple Stores were the only reliable source for iPods. This year, iPods were available in 40,000 locations, mostly in the U.S. There was an inevitable decline in iPod sales at the Apple Stores, then, because of the rapid expansion of the iPod?s distribution."
This could be Apple's undoing, is anyone else finding these stores are pushing customers onto other products with the old "it's got everything the iPod has and..(insert novelty feature that's only real use is to serve as a distraction here)" without even mentioning the iTS and usability?
So while Apple can penetrate the retail turf of traditional consumer electronics they also fall foul of the commodity sale. I think the iPod will start to haemorrhage market-share this year and not just because of iPhone, they need to re-educate consumers to ask 'how' not 'what'
McD
This could be Apple's undoing, is anyone else finding these stores are pushing customers onto other products with the old "it's got everything the iPod has and..(insert novelty feature that's only real use is to serve as a distraction here)" without even mentioning the iTS and usability?
So while Apple can penetrate the retail turf of traditional consumer electronics they also fall foul of the commodity sale. I think the iPod will start to haemorrhage market-share this year and not just because of iPhone, they need to re-educate consumers to ask 'how' not 'what'
McD
i agree.
apple needs to cut back on selling ipods through other retail outlets.
i agree.
apple needs to cut back on selling ipods through other retail outlets.
You're kidding, right?
What about those who want the ATI (or NVidia) chip for their windows stuff, and mac stuff too?
Why not get an iMac, and hook up your sweet monitor to that as an external 2nd display?
Duh, yes.. or as a 1st display of MacMini / MacPro or "2nd" display of any other Mac.. or as a 3rd or 4th or 27th display of the MacPro.
This is a very non-issue "issue", you know..
and how do you get the windows users that have good Monitors that they do not want to give up over to mac?
The macpro starting at $2400 may be to much for most people and the mini has pos video and laptop parts.
I agree with you and most here do too. There has been many discussions about this. It's a mystery as to why Apple doesn't offer a consumer mini tower. I would have bought one long ago. I'm not spending $2400 for a tower and the Mac mini is not upgradable - not what I want.
It's a mystery.
i agree.
apple needs to cut back on selling ipods through other retail outlets.
Huh? Apple needs to make it's products available to anyone who's willing to buy them, anywhere, at any time.
Apple's retail stores will begin courting Windows users with added finesse this spring, as new product launches from the company help pique interest in its Mac line of personal computer, one analyst says.
Quite worthwhile.
I wonder what other Windows surprises Apple has to help this.
eg:
1) Fast boot/shutdown for Leopard, so you can switch to Windows in seconds. It's not virtual PC, but if it can be done in 10 seconds, that'd be interesting. I wonder if anything in the EFI can help achieve this.
2) Import your old Windows. Plug in your legal windows machine (in the store), back it up to the Mac, and restore it to the boot camp partition. Do the hardware update and you have your old windows system instantly available on dual boot. Apple recycles the old PC (making Greenpeace happy and ensuring you don't use 2 copies of the same Windows).
3) Bundle Parallels? I'm sure Parallels could live comfortably on $5/mac if it was bundled on every Mac. VMWare might get annoyed though.
4) Support Win32 in Xcode (via WINE). Help windows developers port to the Mac.
What else?
This could be Apple's undoing, is anyone else finding these stores are pushing customers onto other products with the old "it's got everything the iPod has and..(insert novelty feature that's only real use is to serve as a distraction here)" without even mentioning the iTS and usability?
So while Apple can penetrate the retail turf of traditional consumer electronics they also fall foul of the commodity sale. I think the iPod will start to haemorrhage market-share this year and not just because of iPhone, they need to re-educate consumers to ask 'how' not 'what'
McD
Meh... People who are stupid enough to fall for gimmics don't deserve to use Apple products. After a year or two when they finally realize they wasted $300 on a P.O.S. they turn around and buy an iPod/Mac.
-Clive
i agree.
apple needs to cut back on selling ipods through other retail outlets.
Nonsense. That's like moving to a smaller town so you can be more popular.