The Apple Watch buying experience, needs to be just that; an Experience.
It is pretty evident that Apple wants to sell the Watch in a totally different way to it's other products. It wants to tailor the Watch to the person, provide a more one to one experience with a trained member of staff. This won't work in the Carphonewarehouse or PCWorld or Currys or Staples etc. It may work in John Lewis as they can dedicate staff and area for this experience.
This is a simple strategy from Apple that should work well for them.
Selling the Watch subsidized would help sell it. That's how Samsung was shifting their watches by bundling them with the Galaxy Note. The 6 Plus is bulky to keep pulling out of a pocket or purse so the Watch would be an accessory for it.
iPhone 6 Plus = $25/month or plus $12-35/month with the Watch. They wouldn't get the gold one.
I can see how they'd push alternative watches though and subsequently alternative phones as they are paired but it also seems like Apple is aiming the watch at watch buyers rather than phone buyers. You don't really go to a phone shop if your first intention is to buy a watch, you go to a watch shop. It would be more:
watch shop
customer: I'm here to buy a watch
salesman: check out the ?Watch but you need a phone with it, if you already have a compatible iPhone that's ok or you can get an upgrade
phone shop
customer: I'm here to buy a phone
salesman: can I interest you in a watch?
customer: nope, came here for a phone
Like I say, the accessory is beneficial to some phone buyers but the phone replaces the watch for a lot of people so the watch store is the place where watch buyers are going. I expect the watch will make it to phone stores eventually but customers wouldn't get anywhere near the same treatment when trying them on.
Apple has so much more knowledge in the retail space than they did 5 or 10 years ago. They have infinitely more than anyone else in consumer electronics, because they were forced to. Now, it'll be a huge weapon in their arsenal, because they can calculate a return on investment like never before. They know how much the staff gets, rent, bills, etc. if they can keep the watch at Apple Stores and apple.com indefinitely, they can bypass all kinds of huge fees from places like Walmart and Target. Walmart pretty much tells you how much money is your cut and and how much they take. At the Apple Store, apple not only gets 100%, but they know where every dollar is spent and can make sure it goes to helping the customer, not subjecting them to some pimply Android geek who's life mission is to insinuate Apple is over priced, under developed, and a closed garden. I've been in Walmart and even seen the CASHIER chewing out Apple to an iPhone owner. Of course he was a 17 yo boy with pimples, talking to a 30 yo mom with a few kids right there. She looked VERY uncomfortable, and started to become short with him to get the process to finish more quickly. And, the Sprint lady I get my phone from, through some family plan, is a huge Apple basher - last time I literally picked up my newly purchased iPhone 6 for the first time, she told me how Apple was copying Samsung's latest phone with this feature and that sleep button, etc. She also said I was drinking the 'Apple-Aid', and that Apple was giving her discounts to sell iPhones, and they've never done it but the whole company is doing so badly that they have to. This was November, just a few months ago. I told her a few things, she was very defensive - because i told her Apple wasn't on the decline, but shipments were rising and Samsung's were actually declining. Maybe now that it's in the national news she'll get the facts. So, I'm ok with Apple starting with their own shops and online store. Apple can literally control the entire user experience now.
What kind of weirdo names their business "Carphone Warehouse" ?
They started out selling carphones when they were ridiculously expensive. The name made sense at the time - selling something normally pricey at knock-down prices.
The (former?) owner is a weirdo though, a real character. I've met him a couple of times and he's a great speaker. He certainly doesn't mince his words.
Hopefully longer than that. Imagine these at Best Buy...
I've purchased Apple computers at both Best Buy and the Apple Store.
At Best Buy, it took me over 30 minutes to a) locate a sales associate; b) have the salesman hunt down the iMac model I wanted; c) endure the checkout gauntlet of being offered/refusing an extended warranty, accessories, etc. And they were not busy that particular day.
A couple of years later, on the day before Thanksgiving, I entered the Apple Store, and left with exactly the iMac I wanted, paid for, in four minutes flat from the time I walked in. No joke.
A relative gave me a Best Buy gift card this last Christmas. As I have no desire to ever go into one again, I'm not sure what to do with it...
The (former?) owner is a weirdo though, a real character. I've met him a couple of times and he's a great speaker. He certainly doesn't mince his words.
Charles or David?
Reality is no retailers have much interest in selling Apple unless it's with a phone/data contract where there is a kick back. The margins just aren't there.
To sell the Apple Watch ubiquitously would cheapen the experience. That defeats the purpose for bringing someone like Angela Ahrendts aboard. I would think Neiman Marcus would be more in line with Apple Watch than Nordstrom. Neiman Marcus has a precious jewelry area in which the $17,000 edition watch would hardly be the most expensive merchandise. They also have the security to go with it. The notion of the edition watch in a Best Buy is laughable even with a dedicated leased concession within the store. I continue to think the retail strategy they are using will be a failure despite the sales success of the watch itself. The watch may well succeed despite the rollout. They needed to bring Ron Johnson back....Burberry is not a translatable experience.
I think the retail strategy makes a lot of sense. Nordstrom likely wouldn't be interested in the Edition, but they do sell watches in the price range of the Apple Watch (stainless steel) and Sport, so they would likely be interested in those for the holidays.
Ron Johnson doesn't have the fashion connections that Angela Ahrendts does. If anything, his experience at JC Penney shows that Apple Store as envisioned by Steve Jobs and Ron Johnson is not a translatable experience (at least not easily).
And, the Sprint lady I get my phone from, through some family plan, is a huge Apple basher - last time I literally picked up my newly purchased iPhone 6 for the first time, she told me how Apple was copying Samsung's latest phone with this feature and that sleep button, etc. She also said I was drinking the 'Apple-Aid', and that Apple was giving her discounts to sell iPhones, and they've never done it but the whole company is doing so badly that they have to. This was November, just a few months ago. I told her a few things, she was very defensive - because i told her Apple wasn't on the decline, but shipments were rising and Samsung's were actually declining. Maybe now that it's in the national news she'll get the facts. So, I'm ok with Apple starting with their own shops and online store. Apple can literally control the entire user experience now.
Sales associates at carrier stores get better incentives for selling Android phones because the OEMs have to offer incentives to push stock. This was especially true of Samsung in the last year.
The article refers to Carphone Warehouse but the company merged last year with the Dixons Group who operate Currys PC World http://www.bbc.co.uk/news/business-27420599 Originally Currys were separate to PC WorId. Currys sold mostly electrical goods such as TVs, fridges, cameras, Hi Fi, vacuum cleaners etc and PC World sold Computers. In more recent years the two brands have merged and there is a far bigger crossover between them. I don't know much about Best Buy but it would seems that Currys may be similar. For many years both Currys, PC World and Carphone Warehouse all had a significant share of their respective markets. In my experience in the past the level of service could be poor in Currys and PC World. In the last few years they have had to improve the service due to new competition entering the market such as Amazon and lower sales volumes generally due to the economic downturn. My local Currys PC World has a dedicated Apple display area that is usually manned by a specialist Apple sales advisor. I assume he is employed by Currys rather than Apple.
I agree that Currys PC World & Carphone Warehouse would not be the best place to sell Apple watches. Thinking back to the last time I bought a quality watch, I went to two or three jewellers in the town centre, looked at the displays, tried a few on to see how the watches and strap felt and looked and then made an informed choice. The sales staff were knowledgeable. What I would never do is go to a discount electrical out of town warehouse or mobile phone shop to buy a decent watch. They are just the wrong place. Apple are right to stay away from discount warehouses.
Black on black Sport looks the least conspicuous to me but they will probably be all sold out by the time I wake up on 10 April. I guess I will just order it and wait... whatever... 6-8 weeks. I'll be back in the States for the summer by then anyway.
Comments
The Apple Watch buying experience, needs to be just that; an Experience.
It is pretty evident that Apple wants to sell the Watch in a totally different way to it's other products. It wants to tailor the Watch to the person, provide a more one to one experience with a trained member of staff. This won't work in the Carphonewarehouse or PCWorld or Currys or Staples etc. It may work in John Lewis as they can dedicate staff and area for this experience.
This is a simple strategy from Apple that should work well for them.
http://en.wikipedia.org/wiki/Carphone_Warehouse
"The company was co-founded in 1989, when most portable phones were too bulky to carry and called car phones"
http://en.wikipedia.org/wiki/Car_phone
Selling the Watch subsidized would help sell it. That's how Samsung was shifting their watches by bundling them with the Galaxy Note. The 6 Plus is bulky to keep pulling out of a pocket or purse so the Watch would be an accessory for it.
iPhone 6 Plus = $25/month or plus $12-35/month with the Watch. They wouldn't get the gold one.
I can see how they'd push alternative watches though and subsequently alternative phones as they are paired but it also seems like Apple is aiming the watch at watch buyers rather than phone buyers. You don't really go to a phone shop if your first intention is to buy a watch, you go to a watch shop. It would be more:
watch shop
customer: I'm here to buy a watch
salesman: check out the ?Watch but you need a phone with it, if you already have a compatible iPhone that's ok or you can get an upgrade
phone shop
customer: I'm here to buy a phone
salesman: can I interest you in a watch?
customer: nope, came here for a phone
Like I say, the accessory is beneficial to some phone buyers but the phone replaces the watch for a lot of people so the watch store is the place where watch buyers are going. I expect the watch will make it to phone stores eventually but customers wouldn't get anywhere near the same treatment when trying them on.
What kind of weirdo names their business "Carphone Warehouse" ?
They started out selling carphones when they were ridiculously expensive. The name made sense at the time - selling something normally pricey at knock-down prices.
The (former?) owner is a weirdo though, a real character. I've met him a couple of times and he's a great speaker. He certainly doesn't mince his words.
Hopefully longer than that. Imagine these at Best Buy...
I've purchased Apple computers at both Best Buy and the Apple Store.
At Best Buy, it took me over 30 minutes to a) locate a sales associate; b) have the salesman hunt down the iMac model I wanted; c) endure the checkout gauntlet of being offered/refusing an extended warranty, accessories, etc. And they were not busy that particular day.
A couple of years later, on the day before Thanksgiving, I entered the Apple Store, and left with exactly the iMac I wanted, paid for, in four minutes flat from the time I walked in. No joke.
A relative gave me a Best Buy gift card this last Christmas. As I have no desire to ever go into one again, I'm not sure what to do with it...
Charles or David?
Reality is no retailers have much interest in selling Apple unless it's with a phone/data contract where there is a kick back. The margins just aren't there.
To sell the Apple Watch ubiquitously would cheapen the experience. That defeats the purpose for bringing someone like Angela Ahrendts aboard. I would think Neiman Marcus would be more in line with Apple Watch than Nordstrom. Neiman Marcus has a precious jewelry area in which the $17,000 edition watch would hardly be the most expensive merchandise. They also have the security to go with it. The notion of the edition watch in a Best Buy is laughable even with a dedicated leased concession within the store. I continue to think the retail strategy they are using will be a failure despite the sales success of the watch itself. The watch may well succeed despite the rollout. They needed to bring Ron Johnson back....Burberry is not a translatable experience.
I think the retail strategy makes a lot of sense. Nordstrom likely wouldn't be interested in the Edition, but they do sell watches in the price range of the Apple Watch (stainless steel) and Sport, so they would likely be interested in those for the holidays.
Ron Johnson doesn't have the fashion connections that Angela Ahrendts does. If anything, his experience at JC Penney shows that Apple Store as envisioned by Steve Jobs and Ron Johnson is not a translatable experience (at least not easily).
And, the Sprint lady I get my phone from, through some family plan, is a huge Apple basher - last time I literally picked up my newly purchased iPhone 6 for the first time, she told me how Apple was copying Samsung's latest phone with this feature and that sleep button, etc. She also said I was drinking the 'Apple-Aid', and that Apple was giving her discounts to sell iPhones, and they've never done it but the whole company is doing so badly that they have to. This was November, just a few months ago. I told her a few things, she was very defensive - because i told her Apple wasn't on the decline, but shipments were rising and Samsung's were actually declining. Maybe now that it's in the national news she'll get the facts. So, I'm ok with Apple starting with their own shops and online store. Apple can literally control the entire user experience now.
Sales associates at carrier stores get better incentives for selling Android phones because the OEMs have to offer incentives to push stock. This was especially true of Samsung in the last year.
The article refers to Carphone Warehouse but the company merged last year with the Dixons Group who operate Currys PC World http://www.bbc.co.uk/news/business-27420599 Originally Currys were separate to PC WorId. Currys sold mostly electrical goods such as TVs, fridges, cameras, Hi Fi, vacuum cleaners etc and PC World sold Computers. In more recent years the two brands have merged and there is a far bigger crossover between them. I don't know much about Best Buy but it would seems that Currys may be similar. For many years both Currys, PC World and Carphone Warehouse all had a significant share of their respective markets. In my experience in the past the level of service could be poor in Currys and PC World. In the last few years they have had to improve the service due to new competition entering the market such as Amazon and lower sales volumes generally due to the economic downturn. My local Currys PC World has a dedicated Apple display area that is usually manned by a specialist Apple sales advisor. I assume he is employed by Currys rather than Apple.
I agree that Currys PC World & Carphone Warehouse would not be the best place to sell Apple watches. Thinking back to the last time I bought a quality watch, I went to two or three jewellers in the town centre, looked at the displays, tried a few on to see how the watches and strap felt and looked and then made an informed choice. The sales staff were knowledgeable. What I would never do is go to a discount electrical out of town warehouse or mobile phone shop to buy a decent watch. They are just the wrong place. Apple are right to stay away from discount warehouses.
Black on black Sport looks the least conspicuous to me but they will probably be all sold out by the time I wake up on 10 April. I guess I will just order it and wait... whatever... 6-8 weeks. I'll be back in the States for the summer by then anyway.