Apple initiates employee hardware discount program
As promised early this year, Apple on Wednesday began its new Employee Purchase Plan+, offering an extra $500 discount on eligible Macs and $250 off the iPad to its employees.
Apple CEO Tim Cook first revealed the discount plan at a town hall meeting in January. The program offers employees who have passed their probationary period an extra discount on a Mac and an iPad on top of their usual 25 percent discount once every three years.
MacNN reports that the discounts went into effect on Wednesday. However, the Mac deal does not apply to either the Mac mini or the new MacBook Pro with Retina Display. The Mac mini exclusion makes sense because of the diminutive machine's low price, but Apple's reasons for excluding its top-of-the-line MacBook Pro are not clear, though current constrained supply may be a factor.
The employee benefit program begins on the same day that reports emerged of Apple offering retail workers larger-than-usual raises. Employees reportedly felt the wage increase was long overdue, especially given the record profits that Apple has been enjoying in recent quarters.
The pay hike is expected to help Apple improve employee retention. Microsoft is believed to have poached some Apple retail store workers with promises of "perks, signing bonuses and promotion opportunities," according to the report.
Cook has taken interest in creating programs for employees of the company. He initiated a charitable matching program last year where Apple will annually match up to $10,000 worth of contributions from full-time employees. During an onstage interview late last month, Cook pointed to the matching gift program as an example of changes that he is making at Apple while still preserving the company's unique culture.
Apple CEO Tim Cook first revealed the discount plan at a town hall meeting in January. The program offers employees who have passed their probationary period an extra discount on a Mac and an iPad on top of their usual 25 percent discount once every three years.
MacNN reports that the discounts went into effect on Wednesday. However, the Mac deal does not apply to either the Mac mini or the new MacBook Pro with Retina Display. The Mac mini exclusion makes sense because of the diminutive machine's low price, but Apple's reasons for excluding its top-of-the-line MacBook Pro are not clear, though current constrained supply may be a factor.
The employee benefit program begins on the same day that reports emerged of Apple offering retail workers larger-than-usual raises. Employees reportedly felt the wage increase was long overdue, especially given the record profits that Apple has been enjoying in recent quarters.
The pay hike is expected to help Apple improve employee retention. Microsoft is believed to have poached some Apple retail store workers with promises of "perks, signing bonuses and promotion opportunities," according to the report.
Cook has taken interest in creating programs for employees of the company. He initiated a charitable matching program last year where Apple will annually match up to $10,000 worth of contributions from full-time employees. During an onstage interview late last month, Cook pointed to the matching gift program as an example of changes that he is making at Apple while still preserving the company's unique culture.
Comments
Well, just more proof that Apple appreciates their employees. This program is probably one of ,if not the the best, in the industry.
Tim Cook has certainly shown interest in the customer, employees, and product line.
In my opinion, Apple should be nearly giving away its products to their employees. I mean, they research, develop and sell the products! How else can you be a cheerleader if you have to pay hand over fist for the product?
Discounts that large give one a feel for Apple's profit margins. Hey Apple, how about giving the rest of us a break on pricing?
Quote:
Originally Posted by Feynman
In my opinion, Apple should be nearly giving away its products to their employees. I mean, they research, develop and sell the products! How else can you be a cheerleader if you have to pay hand over fist for the product?
So they should get paid more than they already do - that's what you're saying.
The (little) people who work for money only are easily replaced and should only get what they deserve plus some small bonuses to keep them happy. Key employees and strategic third party developers who do more than just work, are a different story, and have always got what they need - even under "gray box" Sculley.
Some of the (knowledgeable) fanboys who do free PR work for Apple year after year should be rewarded somehow. They matter a lot, but it's hard to ID the significant ones.
That is a very dangerous game.
I've seen the above attitude at other stores with high brand loyalty. They pay the 'little people' very poorly because they know that there's plenty of people who want to work for the company. This attitude attracts the wrong kind of worker. The intelligent free-thinkers don't last long and the company is left with fanatical yes men. Eventually these people get promoted and start making management decisions for the company - often with disastrous consequences.
Never when I was working retail did I have a discount as good as this. Doing the math, a 64GB WiFi+cellular? $372. Not bad if you ask me, and nearly free, as I am sure it is below cost. 16 GB WiFi only (new iPad)? $124. The iPad 2? $49!
I had no idea a Genius makes what they make. I don't think that is low. These stories are showing that Apple understands the huge impact it's retail employees are playing in the success of the company/brand.
Quote:
Originally Posted by starbird73
Never when I was working retail did I have a discount as good as this. Doing the math, a 64GB WiFi+cellular? $372. Not bad if you ask me, and nearly free, as I am sure it is below cost. 16 GB WiFi only (new iPad)? $124. The iPad 2? $49!
Better do your math again. Or read the terms a little more attentively.
Quote:
Originally Posted by BUSHMAN4
Well, just more proof that Apple appreciates their employees. This program is probably one of ,if not the the best, in the industry.
Tim Cook has certainly shown interest in the customer, employees, and product line.
Not really. They can afford to give employees both the $250 and the $500 (which if you look at the image is the real terms not AND). ANd they can afford to put it on all machines. So what if that means they don't make any money on a few Minis. How many employees are going to buy one. Or let them use the $250 on that. The Retina is likely cause of the supply issue and will turn up later. I've heard that's typical for new products.
They can also afford to let employees have 50% off or one machine at cost every couple of years. instead of stupid 'rah rah' parties every quarter they could take that money and give the employees a $50-100 credit in iTunes so such.
I got better discount rates working at Gap, Borders and Godiva over the years. And those companies don't make nearly what Apple does in profit. And don't give Tim too much credit because of this pittance of an inflexible discount that only comes up once every 3 years (instead of say a $200 hardware credit for anything every time you complete a years service)
Actually, starbird is probably right. It says that you get $250/500 ON TOP OF your existing 25% EPP discount.
So, iPad 2. List price $399. Normal EPP discount would be $100, bringing price down to $299. $250 off of that would be $49.
It is possible that they take the $250 off first, so the $399 iPad 2 comes down to $149 first and then take 25% off of that ($112). Even so, it's still a great deal.
What makes you think that "they can afford it" should drive company policy? By that standard, they should give every employee a new Mac Pro every few months. It would be foolish to determine your benefits based on what you can afford. Rather, benefits are determined on what is need to obtain and keep good employees and to incentivize those employees while they work for you.
Really? You got better discounts at Gap, Borders, and Godiva? In the example above, the employee gets a $399 iPad 2 for either $49 or $112, depending on how it's calculated. Which of the three companies you've cited gives the employee 75% off?
Quote:
Originally Posted by xxSampleXX
Discounts that large give one a feel for Apple's profit margins.
Indeed
Quote:
Originally Posted by xxSampleXX
Hey Apple, how about giving the rest of us a break on pricing?
Why should they, when they are selling truckloads at the current price points?
Quote:
Originally Posted by starbird73
Never when I was working retail did I have a discount as good as this. Doing the math, a 64GB WiFi+cellular? $372. Not bad if you ask me, and nearly free, as I am sure it is below cost. 16 GB WiFi only (new iPad)? $124. The iPad 2? $49!
something tells me that if you look at the fine print you can't use the 'cash' on refurbs, end of life products or the iPad 2.
Quote:
Originally Posted by jragosta
You got better discounts at Gap, Borders, and Godiva? In the example above, the employee gets a $399 iPad 2 for either $49 or $112, depending on how it's calculated. Which of the three companies you've cited gives the employee 75% off?
Once every 3 years and that negates the computer "cash" for that 3 years. As opposed to a constant 50% off (30% if it was a mark down) on my clothes and all gift clothes I buy all the time. Or 30% off my books even special orders all the time. etc.
As for the whole Mac Pro thing. Yeah maybe they should give all employees a Mac Pro every couple of years. Or how about an iMac and an iPad. Or a laptop and an iPad. or whatever comes out to the same at cost as the base level Mac Pro. Sometimes 'we can afford it' should be why they do something. After all why should any company make a fortune on their goods and pull stunts like not give sick time to part timers (or even health insurance which Apple didn't until a year or two ago). When they released the iPhone a free one was given to every employee that had been there for a year. That didn't break the bank and it was a much smaller bank then.
Sure Apple is not going to do something like that free iPhone ever again but don't act like this pittance of a 'bonus' is really all that awesome, because it isn't.
Quote:
Originally Posted by Feynman
In my opinion, Apple should be nearly giving away its products to their employees. I mean, they research, develop and sell the products! How else can you be a cheerleader if you have to pay hand over fist for the product?
I am sure they could/would go work somewhere else if they're dissatisfied by having to pay 'hand over fist'.
Quote:
Originally Posted by starbird73
Never when I was working retail did I have a discount as good as this. Doing the math, a 64GB WiFi+cellular? $372. Not bad if you ask me, and nearly free, as I am sure it is below cost. 16 GB WiFi only (new iPad)? $124. The iPad 2? $49!
I agree that the employee discount is one of the best or the best of any retailer but I question your math.
$500 off a mac
$250 off an iPad
a 16BG wifi new iPad is $499; minus $250 = $249. You have $124???
a 64GB WiFi+cellular (I assume the new iPad) is $829; minus $250 = $579. You have $372???
an iPad 2 is $399; minus $250 = $149. You have $49????
what don't I understand here?
Quote:
Originally Posted by juanm105
I agree that the employee discount is one of the best or the best of any retailer but I question your math.
$500 off a mac
$250 off an iPad
a 16BG wifi new iPad is $499; minus $250 = $249. You have $124???
a 64GB WiFi+cellular (I assume the new iPad) is $829; minus $250 = $579. You have $372???
an iPad 2 is $399; minus $250 = $149. You have $49????
what don't I understand here?
MY bad!!!
Sorry.
I just re-read the story and noted that Tim Cook said that this discount would be in addition to the 25% discount that employees already get.
Wow!!!! That is an even more amazing discount that I would say is almost giving the products away to employees!
by the way, Apple overall general margin on its sales, I think it is about 42% (varies)
I don't see how they are even close to the same thing. People tend to buy a lot more clothes and they tend to wear them to work. You certainly aren't using your Apple products whilst working.
Then there is the business models between Old Navy and Banana Republic giving you a hefty discount (which they seem to do all the time*) and a CE company. If employees could by unlimited product at a constant 50% off they not only would lose money on each sale but all these employees could turn around and sell these products for a hefty profit. It makes absolutely no sense.
As for the Mac Pro comment why do all employees want Mac Pros? I certainly wouldn't want one. I'd rather get that 60¢ per hour rate two years earlier so I can save that money to buy something I want.