I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
The only greedy party here is Apple who despite sitting on billions of $ and profits that every other company drools over insists on terms that no one else gets or even asks for. Apple has become what they fought against Microsoft for so long trying to survive in the 80's 90's etc. The big bad bully.
Nonsense; 1. Microsoft drove software companies like WordPerfect & Lotus, into the ground (with unfair practices). Mall tenant rent has nothing to do with that. 2. Apple’s terms in your words are greedy. By your “thinking” Apple’s unreasonable terms should = zero Apple Stores. Fact; there are 504 Apple Stores worldwide. This shows that Apple’s terms can be considered acceptable by many mall owners. 3. In the history of retail not every store location/construction deal gets done. Apple is not obligated to agree with every landowner’s terms. 4. Apple Stores support the brick & mortar retail model. What company is hurting physical store retail the most? Amazon.
Nope. Apple is not identical of course to Microsoft but the attitudes are much the same. Apple squelches competition in the App Store etc. As long as they get away with it, that's cool I guess. However, especially is Europe the tide is swinging against big companies like Apple, Google etc. It's only a matter of time before Apple runs afoul of regulations.
As for greed, just because other property owners give in to Apple doesn't mean they're right and they're not being greedy. Demanding terms that no one else gets is greed. Israel is not the only country they've run into this. If you read the article you'd have seen that.
The US and Europe can often afford terms many other countries can't. Considering how much of the tech Apple that uses was actually at least initially developed in Israel, not to have a store or presence there due to greed is a shameful.
1. Microsoft drove software companies like WordPerfect & Lotus, into the ground (with unfair practices). Mall tenant rent has nothing to do with that. 2. Apple’s terms in your words are greedy. By your “thinking” Apple’s unreasonable terms should = zero Apple Stores. Fact; there are 504 Apple Stores worldwide. This shows that Apple’s terms can be considered acceptable by many mall owners. 3. In the history of retail not every store location/construction deal gets done. Apple is not obligated to agree with every landowner’s terms. 4. Apple Stores support the brick & mortar retail model. What company is hurting physical store retail the most? Amazon.
The company I was with basically dealt with the large national mall developers. There were must have locations that we wanted but sometimes you secure a location and sometimes you don't. Some of the traditional terms that were part of the negotiations would be location, construction/lease-hold improvement cost as well as free rent terms for a limited amount of time after opening. Remember that traditional malls were developed with the "anchors" in mind. It was critical to know who the anchors were going to be and the length of their lease. The Apple Store was not in existence at the time nor would they have been considered an anchor regardless of generated foot traffic. Believe it or not, there are other retailers that generate significant foot traffic as well in these malls.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Apple singlehandedly drives substantial foot traffic to places their retail stores are located so they can demand these kind of concessions. There are reportedly some malls here in this US that are kept afloat entirely by the customers the Apple Store brings; and without the Apple Stores these malls would likely have to close.
No one else drives traffic? That’s disrespectful to every other company in the mall/location.
Mall’s in the US are struggling for relevecy, but that’s not true everywhere else in the world.
Apple does look bad, and not a good neighbor. If Apple demands concessions, other tenants will have to pay for them in higher rent.
Apple has some questionable business practices lately. My high regard is declining.
I don't know why people ascribe any sort of morality to this. There are no good and bad guys in this, only business. Apple was in its rights to ask for whatever it thought it could get, and the landlord was within its rights to say yes or no. In this case the parties couldn't come to an agreement and parted ways, again that's business.
However, this seems to be the exception rather than the rule when you consider all the grandiose and not so grandiose Apple stores that have opened all over the world. It would not be unreasonable to assume that Apple drove similarly hard bargains at each of those locations yet those landlords must have thought juice was worth the squeeze.
In my city, Microsoft even relocated their store from the "glamorous" end of the mall (with the Tiffany, Chanel, Neimans, Gucci, Prada, etc. type stores) to a more "pedestrian" part of the mall (where the GAP and Bath and Body Works are) right next door to the Apple Store (which had also doubled in size since it opened).
This is the President’s “I didn’t pay taxes, because I’m smart” thinking.
When Apple doesn’t pay photographers when they use their work on ads that make Apple money... that’s “smart”?
The article reminds me of NFL teams demand of cities to fund stadium improvements, when they’re raking in $$$’s from those same cities and fans ‘hand-over-fist’.
Apple has done some good things for the environment, and with their hiring practices. Was that just “smart” PR? Is Apple becoming just another amoral corporation? It’s starting to look like it.
I’m the perfect case of Apple’s risk. I own an iPhone and IPad, but I have little commitment to Apple’s ecosystem. Apple’s business practices are part of what keeps me a supporter. The reality is the competition gets me almost everything I get with Apple, but at a cheaper price.
Apple needs to be “smart” and consider if @#$& over property owners (etc) is worth losing customers on the fence.
Anyone else follow football? I like Julio Jones. He’s a “team” player.
See any parallels between Apple’s situation and his?
Julio Jones said he is "comfortable" with how contract talks are progressing.
Jones said there is "no pressure" to get anything done right now, and he does not "really care" about being the highest-paid receiver in the league. "It's a number," Jones said. "We've got some other guys on the team. If we can do it in a way to get all the other guys to stay on the team ... it's a lot of ways you can do money." It would be a shock if the two sides do not hash something out before training camp.
As I read it from other sources it appears Apple is totally aware that its presence in shopping malls increases foot traffic, and draws a demographic consistent with Apple’s brand (that is to say people with money). Apple is trying to monetize the added value its stores bring to retail shopping centers. It promotes the idea that the mall owners and retail clients make more money than they would without an Apple store. I see nothing greedy about that at all. Claims of “greedy Apple” are vapid and just sour grapes from those who dislike the company in general.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
And if this is soooooo egregious and evil then explain why Apple stores are so popular in so mnay malls around the world. Others seem to find the attraction of an Apple store in their mall is worth the negotiated perks Apple gets. And do people think the big box anchor stores in malls (Macy’s, Nordstroms, Dillards, Saks Fifth Avenue, etc.) don’t do the same thing, trying to negotiate better terms because of their importance to the retail environment? Nope, this is the usual response from the Apple hater element that needs to find something to carp about continuously.
Why ditch Plan A? @apple. What you do is Improvise, adapt, and overcome is a powerful way of thinking. Saddens me to see a once great company stick its tail between its leg not to run and hide in the corner. Come on @apple!!!
“Once great”? Not great because they won’t agree to terms they don’t wish to agree to? Riiiight..
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
So because Apple is doing well, they should agree to any lease terms given, and not taking those terms is “greedy”? My god man. Don’t ever run your own business, you’ll be destroyed.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
“an Apple Store in a mall will increase the footfalls. Moreover, the high net worth of potential consumers will undoubtedly add value to the retail location. For this reason, Apple sometimes demands free rent for a significant period from mall owners. It is obvious that mall owners would never approve such demands.”
...it’s not perm free rent, it’s a signing bonus — since it’s Apple that drive business and thus revenue to the mall. Do you have a moral problem with athletes and executives getting signing bonuses? Or just Apple?
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Apple singlehandedly drives substantial foot traffic to places their retail stores are located so they can demand these kind of concessions. There are reportedly some malls here in this US that are kept afloat entirely by the customers the Apple Store brings; and without the Apple Stores these malls would likely have to close.
No one else drives traffic? That’s disrespectful to every other company in the mall/location.
Mall’s in the US are struggling for relevecy, but that’s not true everywhere else in the world.
Apple does look bad, and not a good neighbor. If Apple demands concessions, other tenants will have to pay for them in higher rent.
Apple has some questionable business practices lately. My high regard is declining.
Hmm how far back do we have to get to your posts when they’re in high regard?
Your notion of this fact about apple driving mall traffic being “disrespectful” is absurd. Truth is truth.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
“an Apple Store in a mall will increase the footfalls. Moreover, the high net worth of potential consumers will undoubtedly add value to the retail location. For this reason, Apple sometimes demands free rent for a significant period from mall owners. It is obvious that mall owners would never approve such demands.”
...it’s not perm free rent, it’s a signing bonus — since it’s Apple that drive business and thus revenue to the mall. Do you have a moral problem with athletes and executives getting signing bonuses? Or just Apple?
I thought I asked if the mall was being greedy, not whether there was anything wrong with Apple asking for a break since that was what the OP said was going on. Let me check....
Yup, that's what I asked. I have no moral problem with anyone asking for a raise, a bonus or free rent.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
The only greedy party here is Apple who despite sitting on billions of $ and profits that every other company drools over insists on terms that no one else gets or even asks for. Apple has become what they fought against Microsoft for so long trying to survive in the 80's 90's etc. The big bad bully.
Nonsense; 1. Microsoft drove software companies like WordPerfect & Lotus, into the ground (with unfair practices). Mall tenant rent has nothing to do with that. 2. Apple’s terms in your words are greedy. By your “thinking” Apple’s unreasonable terms should = zero Apple Stores. Fact; there are 504 Apple Stores worldwide. This shows that Apple’s terms can be considered acceptable by many mall owners. 3. In the history of retail not every store location/construction deal gets done. Apple is not obligated to agree with every landowner’s terms. 4. Apple Stores support the brick & mortar retail model. What company is hurting physical store retail the most? Amazon.
Nope. Apple is not identical of course to Microsoft but the attitudes are much the same. Apple squelches competition in the App Store etc.
Apple, with a minority market share, is squelching competition like MS, who has a monopoly? Yeah no.
As foe the app store on iOS, they have a monopoly like McDonald’s does on their own menu.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
Apple’s demand is not uncommon for a high profile tenant or sometimes not even for lessor tenants. For example, several months free is common to offset the time necessary to renovate the store, which costs Apple money. Further, if Apple drives traffic and in effect raises rent prices this helps the landlord. Many landlords in retail demand not only rent but also a cut of the profit. So it really is hard to determine who is being greedy especially when these leases are often long term and thus come with considerable risk.
As I read it from other sources it appears Apple is totally aware that its presence in shopping malls increases foot traffic, and draws a demographic consistent with Apple’s brand (that is to say people with money). Apple is trying to monetize the added value its stores bring to retail shopping centers. It promotes the idea that the mall owners and retail clients make more money than they would without an Apple store. I see nothing greedy about that at all. Claims of “greedy Apple” are vapid and just sour grapes from those who dislike the company in general.
That's certainly true in the US and Western Europe. In other countries that is much less so. People have much less disposable cash that they would be attracted to Apple stores let alone spend more money in a mall.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
The only greedy party here is Apple who despite sitting on billions of $ and profits that every other company drools over insists on terms that no one else gets or even asks for. Apple has become what they fought against Microsoft for so long trying to survive in the 80's 90's etc. The big bad bully.
Nonsense; 1. Microsoft drove software companies like WordPerfect & Lotus, into the ground (with unfair practices). Mall tenant rent has nothing to do with that. 2. Apple’s terms in your words are greedy. By your “thinking” Apple’s unreasonable terms should = zero Apple Stores. Fact; there are 504 Apple Stores worldwide. This shows that Apple’s terms can be considered acceptable by many mall owners. 3. In the history of retail not every store location/construction deal gets done. Apple is not obligated to agree with every landowner’s terms. 4. Apple Stores support the brick & mortar retail model. What company is hurting physical store retail the most? Amazon.
Nope. Apple is not identical of course to Microsoft but the attitudes are much the same. Apple squelches competition in the App Store etc.
Apple, with a minority market share, is squelching competition like MS, who has a monopoly? Yeah no.
As foe the app store on iOS, they have a monopoly like McDonald’s does on their own menu.
Not quite as McDonald's doesn't allow outsiders to sell items in their stores. Apple does via the App Store.
The point again is that Apple is using it's power to squelch any innovation that it feels night effect it's bottom line. We shall see in the next few years how regulatory bodies will deal with the App Store and other Apple practices. Some area good some not so much.
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Apple singlehandedly drives substantial foot traffic to places their retail stores are located so they can demand these kind of concessions. There are reportedly some malls here in this US that are kept afloat entirely by the customers the Apple Store brings; and without the Apple Stores these malls would likely have to close.
Well that is true, but this is US. They may not need that in Israel for some reasons. One of the reasons could be that there is something attractive on their market that Apple would take crowd away. Another reason is safety - it is easy to attack such crowded store that pays little attention to terrorism and crime (California Apple store thefts during operation hours?)
Nothing unusual - this is standard business practice.
In a business negotiation, whoever has the stronger bargaining power would be an idiot not to use it. I would be appalled if Apple does not bully the mall landlords, given the cache that Apple commands. Landlords are evil too. I can say this because I am one
Heck, Apple should just go buy their own mall in Tel Aviv....
I have to say, this is just more of Apple looking greedy. Apple is making a ton of money and doing that at the expense of everyone else. If Apple wanted to rent or build someplace, I'd do a 50% markup Apple Tax to Apple.
Not sure why people blame Apple. It is a simple business decision. If
Mall owner wants to be greedy,unfriendly, non cooperative than Apple has
no choice. Apple has withdrawn opening site in places where locals are
non-cooperative,hostile.
Who is being greedy here? I remember when Steve Jobs was meeting with the powers in Cupertino about the new building and he was asked if he'd give free WiFi or other benefits to the local community, he said something to the effect of, "I'm a pretty simple guy. We pay taxes to the community." The same should be true for renting space. You lease commercial space at a price that makes sense for your business. No landlord gives you back marketing money or funds for inventory. Maybe they give you a month or three of free rent before the store opens. Why should a landlord pay for Apple's marketing or inventory? If any landlord in the U.S. is doing that, they're out of their minds.
Comments
As for greed, just because other property owners give in to Apple doesn't mean they're right and they're not being greedy. Demanding terms that no one else gets is greed. Israel is not the only country they've run into this. If you read the article you'd have seen that.
The US and Europe can often afford terms many other countries can't. Considering how much of the tech Apple that uses was actually at least initially developed in Israel, not to have a store or presence there due to greed is a shameful.
When Apple doesn’t pay photographers when they use their work on ads that make Apple money... that’s “smart”?
The article reminds me of NFL teams demand of cities to fund stadium improvements, when they’re raking in $$$’s from those same cities and fans ‘hand-over-fist’.
Apple has done some good things for the environment, and with their hiring practices. Was that just “smart” PR? Is Apple becoming just another amoral corporation? It’s starting to look like it.
I’m the perfect case of Apple’s risk. I own an iPhone and IPad, but I have little commitment to Apple’s ecosystem. Apple’s business practices are part of what keeps me a supporter. The reality is the competition gets me almost everything I get with Apple, but at a cheaper price.
Apple needs to be “smart” and consider if @#$& over property owners (etc) is worth losing customers on the fence.
See any parallels between Apple’s situation and his?
Julio Jones said he is "comfortable" with how contract talks are progressing.
Jones said there is "no pressure" to get anything done right now, and he does not "really care" about being the highest-paid receiver in the league. "It's a number," Jones said. "We've got some other guys on the team. If we can do it in a way to get all the other guys to stay on the team ... it's a lot of ways you can do money." It would be a shock if the two sides do not hash something out before training camp.
Community = Team
“Greed” not = “Good”
So because Apple is doing well, they should agree to any lease terms given, and not taking those terms is “greedy”? My god man. Don’t ever run your own business, you’ll be destroyed.
...it’s not perm free rent, it’s a signing bonus — since it’s Apple that drive business and thus revenue to the mall. Do you have a moral problem with athletes and executives getting signing bonuses? Or just Apple?
Hmm how far back do we have to get to your posts when they’re in high regard?
Your notion of this fact about apple driving mall traffic being “disrespectful” is absurd. Truth is truth.
Yup, that's what I asked. I have no moral problem with anyone asking for a raise, a bonus or free rent.
who has a monopoly? Yeah no.
As foe the app store on iOS, they have a monopoly like McDonald’s does on their own menu.
The point again is that Apple is using it's power to squelch any innovation that it feels night effect it's bottom line. We shall see in the next few years how regulatory bodies will deal with the App Store and other Apple practices. Some area good some not so much.
In a business negotiation, whoever has the stronger bargaining power would be an idiot not to use it. I would be appalled if Apple does not bully the mall landlords, given the cache that Apple commands. Landlords are evil too. I can say this because I am one
Heck, Apple should just go buy their own mall in Tel Aviv....