In-store iPad 2 displays expected to save Apple time and money
Apple's new interactive iPad 2 displays will not only create interest and generate sales for the touchscreen tablet, but they will also save the company money in the long run, one analyst believes.
Brian White with Ticonderoga Securities sent a note to investors on Monday commenting on Apple's retail overhaul that debuted on Sunday. The Cupertino, Calif., company upgraded its stores and now utilizes iPad 2 units as interactive displays to provide product information, pricing and features.
White said he believes the introduction of iPads into the retail experience will take Apple's already highly successful stores "to the next level."
"Additionally, we believe this initiative will ultimately save Apple money, as the iPad 2 product displays can be refreshed much faster and cheaper versus printing, a concept that other retails could implement," he said.
White visited Apple's flagship Fifth Avenue store in New York City, where he said about 150 iPad 2 displays were already set up. In addition, some employees were also utilizing iPad 2 units, as employees have been equipped with new RetailMe software.
Apple Retail 2.0 display iPad | Source: leoleakey
Apple said in its most recent quarterly earnings report that it had 323 total stores at the end of the March quarter, with average revenue of $9.9 million per store, a year-over-year increase of 90 percent. The company expects to open 40 new stores in its fiscal year 2011, with nearly three-quarters of those stores located outside of the U.S.
Brian White with Ticonderoga Securities sent a note to investors on Monday commenting on Apple's retail overhaul that debuted on Sunday. The Cupertino, Calif., company upgraded its stores and now utilizes iPad 2 units as interactive displays to provide product information, pricing and features.
White said he believes the introduction of iPads into the retail experience will take Apple's already highly successful stores "to the next level."
"Additionally, we believe this initiative will ultimately save Apple money, as the iPad 2 product displays can be refreshed much faster and cheaper versus printing, a concept that other retails could implement," he said.
White visited Apple's flagship Fifth Avenue store in New York City, where he said about 150 iPad 2 displays were already set up. In addition, some employees were also utilizing iPad 2 units, as employees have been equipped with new RetailMe software.
Apple Retail 2.0 display iPad | Source: leoleakey
Apple said in its most recent quarterly earnings report that it had 323 total stores at the end of the March quarter, with average revenue of $9.9 million per store, a year-over-year increase of 90 percent. The company expects to open 40 new stores in its fiscal year 2011, with nearly three-quarters of those stores located outside of the U.S.
Comments
I think iPads are already being used by many businesses in this way.
This provides a useful template for many more businesses, who may have been considering
iPads but needed a little nudge from Apple.
And the iPad table is swamped with the things, one for each iPad. Hard to tell which one is the display, and which one is the product on display. (grin)
I think iPads are already being used by many businesses in this way.
I've seen iPads in many high-end restaurants in Manhattan, as well as a couple in southern Connecticut. It's almost always the wine list they use the iPad for. I love mine, but this seems like overkill. Maybe not...but it definitely surprised me the first few times. After that I just shrugged. I'll admit it does make finding wine a bit easier, and the waiter doesn't have to stand there to tell you about each bottle. We always end up asking him anyway, but maybe it has cut their costs. Or maybe it's trendy. We'll see. I checked for angry birds one time and...no dice.
I think iPads are already being used by many businesses in this way.
I would say in fact they are not. Otherwise this wouldn't be the big deal that it is.
But I agree that it could be. And not just retail businesses. Museums etc could also make sure of this kind of set up for their information screens. They could even be set up to allow for viewing or even hearing several languages
But of coz it also help selling iPad, but money saving would definitely not be one of them.
Who is coming through our doors, how many are browsing versus looking for a sale, how many are actively seeking an associate, how many that are seeking an associate actually stick around until they are helped, what devices are being examined, etc.
Although the system relies on inputs from the customers through the door this is a much bigger step toward gathering the key retail intel than having an analyst observe and ask a few select customers some directional questions. The data this system can generate will be pure gold for the Apple Store powers that be. Decision making will be better supported and managers will be able to make stronger cases for more or fewer employees and other resources.
This provides a useful template for many more businesses, who may have been considering
iPads but needed a little nudge from Apple.
Indeed. Possibly Apple is already doing this, but I think they need to develop a sort of "embedded iPad" product for this purpose.
Perhaps a wedge shaped iPad or one on a flexible stand. Something that can get the same recognition from the public as the current iPad has and that can be placed on a counter anywhere from hotels to retail stores, that people will instantly recognise as an information kiosk.
I would say in fact they are not. Otherwise this wouldn't be the big deal that it is.
But I agree that it could be. And not just retail businesses. Museums etc could also make sure of this kind of set up for their information screens. They could even be set up to allow for viewing or even hearing several languages
Out in California's department stores, the makeup counters show prospective customers how to apply makeup. Different colors go on digital faces. With iPad2, I wouldn't be surprised if they don't take your photo and do a digital make-over.
This system goes far beyond an interactive price tag or features list. This system is a step toward something that retail has always wanted more intel and tracking on.
Who is coming through our doors, how many are browsing versus looking for a sale, how many are actively seeking an associate, how many that are seeking an associate actually stick around until they are helped, what devices are being examined, etc.
Although the system relies on inputs from the customers through the door this is a much bigger step toward gathering the key retail intel than having an analyst observe and ask a few select customers some directional questions. The data this system can generate will be pure gold for the Apple Store powers that be. Decision making will be better supported and managers will be able to make stronger cases for more or fewer employees and other resources.
Won't be long before the robots are coming. All Apple has to do is spend their profit money on buying a robotics company and that iPad Kiosk will also wrap up your purchase for you.
I could print TONNES of paper before it is worth as much as iPad.
But of coz it also help selling iPad, but money saving would definitely not be one of them.
I won't pretend I know all the numbers, but it's more complicated than that.
-the cost, for Apple, to build an iPad 2 is MUCH less than the retail $499
-updates to displays can be done instantaneously, over the internet from Cupertino
-these same displays can be used through multiple iterations of devices, or switched over to display other information
-they are used to manage the support queue, so that customers don't have to hunt down a specialist
-it further differentiates the experience/novelty of going to an Apple Store, which in itself has value: if it makes going to the Apple Store 10% more fun and brings in 10% more potential customers, that will offset the price of a few iPads veeeery easily
-updates to displays can be done instantaneously, over the internet from Cupertino
-these same displays can be used through multiple iterations of devices, or switched over to display other information
Agreed. But considering the yearly update of iPad hardware, I wonder if they'll replace all of them with next-generation iPads. Maybe they're no longer shiny after a year in the store anyway.
Then, wouldn't it be nice if you'd get a used iPad with your new Mac? Just like getting a hanger and garment bag with your new suit.
I bet this was pretty inexpensive for Apple to do, as well. Compared to the retail iPad, there are probably no cameras, no speakers, no battery, a smaller hd, possibly less RAM (only the one app to run at a time), plus obviously no retail markup... I'm thinking these cost Apple about $100 each...
Almost certainly NOT a customer hardware configuration. The cost of added a configuration management for, say, 15,000 units plus replacements would more than overwhelm and marginal cost savings is parts. These units cost Apple ~ $325 ea. Even assuming your $100 ea which I think would be low, at $225 ea savings that's only $3.4 million savings world-wide. Would not begin to cover the cost of managing a supply chain change to implement the major changes your talking about.
Won't be long before the robots are coming. All Apple has to do is spend their profit money on buying a robotics company and that iPad Kiosk will also wrap up your purchase for you.
I for one welcome our new *automatron* overlords.
It seems that any info that helps a company have better knowledge around how their resources are being used and whether they need more/less resources at a particular location is pure gold. While serving the customers may not become an entirely automated process, making a business case within the company could.
I could print TONNES of paper before it is worth as much as iPad.
But of coz it also help selling iPad, but money saving would definitely not be one of them.
Ink and paper costs are not the only things that Apple has to contend with. There is shipping costs of sending out the new cards to each store. There is also the cost of paying employees to go around and update each card as well. And if the employees can go around changing the cards, it's probably not too hard for customers to go mucking with them as well, which means that the employees also have to keep checking the cards as well (at least periodically -- but it's still another cost that Apple has to bear).
Another consideration -- Apple is a technology company. Why shouldn't they being using their technology to solve existing problems in retail in their own creative ways? Using iPads is a great way to demonstrate their technology to potential customers and to also provide relevant information about the products they are looking at. Win-win.
Almost certainly NOT a customer hardware configuration. The cost of added a configuration management for, say, 15,000 units plus replacements would more than overwhelm and marginal cost savings is parts. These units cost Apple ~ $325 ea. Even assuming your $100 ea which I think would be low, at $225 ea savings that's only $3.4 million savings world-wide. Would not begin to cover the cost of managing a supply chain change to implement the major changes your talking about.
I would expect these are stock devices as well -- perhaps there is a custom iOS build in place to allow for the home button to be disabled, but beyond that, they are probably 16GB WiFi models. Makes replacement easier too for when one ultimately gets broken in the store.