Apple banks on retail stores
Friday, November 13th, 2009 | Uncategorized
Apple’s latest store in Manhattan is part of a bigger plan to win new customers through its retail strategy.
Originally posted at Signal Strength
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12 2009 2:41 PM PST Apple banks on retail stores by Marguerite Reardon Font size
Print E-mail Share 14 comments Apple’s new store on the Upper West Side opens on
Saturday at 10 a_m Credit Marguerite Reardon/CNET NEW YORK–Apple hopes to grow
its market share with an increasingly aggressive retail strategy that includes
opening bigger stores in more locations At a media preview of its fourth store
here which is located on the Upper West Side Ron Johnson Apple’s senior vice
president of retail said Apple’s retail strategy is all about getting consumers
to switch from PCs to Macs New Manhattan Apple store on the Upper West
Side–photos Our Apple stores are a magnet for switchers he said About half the
people who come into our retail locations are first-time Mac buyers Johnson said
that Apple’s Genius Bar which provides face-to-face customer service and support
and other services allow people to switch from a PC to a Mac with confidence For
example Apple offers its One-to-One service which allows new Mac users to drop
off their old computer so that files can be transferred from the older computer
to a new Mac The new Apple store on the Upper West Side is the first to have a
glass ceiling Credit Marguerite Reardon/CNET The service which costs $99 for one
year then allows users to meet one-on-one with an Apple representative to
discover where the new content is on the computer and to learn how to use more
advanced features Customers can use the one-on-one instruction service as much
as they like for that one-year period Johnson also said that the Apple stores
provide a good way for customers to test out and play with new products before
they buy them Even if customers don’t buy their Mac iPhone or iPod in the Apple
store the experience they get from looking at it in the store is often enough to
help them make a purchasing decision The strategy seems to be working Apple has
been increasing its overall sales and market share for its products over the
past year particularly for its Macs In the third quarter of 2009 the company
sold about 3 million new Macs which was a 17 percent increase compared to a year
earlier according to IDC This was well ahead of the overall global PC market
which grew by only about 2 percent according to IDC For 19 of the last 20
quarters Apple has outpaced the market in terms of sales Even though overall
sales have increased Apple hasn’t made huge gains in market share But it has
made modest improvements Over the past year the company has managed to bump its
market share up to 9_4 percent in the third quarter of 2009 from about 8_6
percent in the third quarter of 2008 Apple is in fourth place in the overall
computer market lagging PC makers Hewlett-Packard Dell and Acer In 2001 when
Apple opened its first store plenty of people questioned whether Apple’s retail
strategy would even work But eight years and 279 stores later the retail
business has become a big revenue driver for the company In fiscal 2009 Apple
generated $6_6 billion of the company’s $29_9 billion in revenue from its retail
stores Johnson said Some of the stores such as the Fifth Avenue store in
Manhattan which sits below a glass cube across the street from the Plaza Hotel
have become tourist destinations Apple purposely puts stores in high-traffic
areas to attract customers Johnson said And in the case of big stores like the
ones in Manhattan it’s also important to put them where people visit Worldwide
some 170 million visitors entered an Apple store in fiscal 2009 Apple’s flagship
stores or as the company calls them significant stores are especially designed
to draw in visitors with eye-catching design and architecture And the new Upper
West Side store at Broadway and 67th Street is no exception The new store
features a glass roof the first ever for an Apple store And it also features
45-foot-tall stone walls a large ground floor to showcase products and a glass
spiral staircase that leads to the lower level of the store where Apple provides
service Apple plans to open between 40 and 50 new retail stores in 2010 More
than half of these new stores are expected to be outside the U_S Some of the
countries where Apple will open new stores include the United Kingdom Canada
Australia Italy Switzerland Germany France and China Johnson said Apple’s main
competitor Microsoft is trying to emulate Apple’s retail success by opening up
stores of its own Recently the software maker opened locations in Scottsdale
Ariz and Mission Viejo Calif Apple’s latest Manhattan store on Broadway at West
67th Street will open to the public at 10 a_m EST on Saturday Marguerite Reardon
has been a CNET News reporter since 2004 covering cell phone services broadband
citywide Wi-Fi the Net neutrality debate as well as the ongoing consolidation of
the phone companies E-mail Maggie Topics Corporate and legal Tags Apple retail
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14 Comments prev 1 next by Gold_Storm_Mac November 12 2009 3:39 PM PST These
stores are amazing and have brought in incredible amount of revenue and
popularity for apple They are always so crowded Even though most of them just
come to play with Photo Booth Like this Reply to this comment by DumbMacUser1
November 12 2009 4:40 PM PST In an unrelated story in response to Google’s Free
Wifi at Airports during the holidays Apple Inc is also now offering Wifi At
Airports Apple’s Free Wifi access will work long enough for you to log in and
submit your credit card number at which time you will get 5 minutes of free Wifi
for $5 After that customers can continue to use iWifi for FREE as long as they
are downloading either iCrap software valued at $4_99 or more or downloading
music at $1 or more from Apple The service will continue to run for free until
the user stops purchasing music and iCrap software at which time it will return
to a nominal $1 per minute charged to your credit card Apple’s iWifi will
disconnect you and automatically finalize your credit card bill and charge you
once your credit card is maxed out Apple encourages parents to pre-load their
credit card numbers on their young children’s iCrap for maximum ease of use
Apple revolutionized the iCrap movement by inventing iCrap Wifi MP3 and various
other things which were started by others but generally owned and invented by
Apple Like this by Gold_Storm_Mac November 12 2009 3:42 PM PST Apple hopes to
steal the spotlight from Microsoft Like this Reply to this comment by
Gold_Storm_Mac November 12 2009 3:55 PM PST lol the video is sponsored by
Windows 7 Microsoft Like this by etslee November 12 2009 4:05 PM PST Ay chance
SF will get a flagship store The Union Square store is tiny Like this Reply to
this comment by Perry_Clease November 12 2009 4:12 PM PST Wasn’t that the first
one We have 5 in the San Diego Area The one at Fashion Valley is probably 4
times the size of the others but could not be considered a flagship store I was
in there yesterday and it was busy as usual Like this by Mr Dee November 12 2009
4:46 PM PST The first Apple Store was in Virginia I am not a Mac user and even I
know that Like this by cnetpre November 12 2009 4:31 PM PST While other
businesses are reducing overall expenses by closing down their brick mortar
business models in favor of online opportunities to increase cost-savings Apple
might be putting their business at risk by doing the complete opposite Only time
will tell Like this Reply to this comment by Gold_Storm_Mac November 12 2009
4:38 PM PST Apple has too much capital and store traffic for that Though
technology advances a lot of people enjoy taking their strolls through the city
and visiting beautiful stores Like this by DumbMacUser1 November 12 2009 4:39 PM
PST In an unrelated story in response to Google’s Free Wifi at Airports during
the holidays Apple Inc is also now offering Wifi At Airports Apple’s Free Wifi
access will work long enough for you to log in and submit your credit card
number at which time you will get 5 minutes of free Wifi for $5 After that
customers can continue to use iWifi for FREE as long as they are downloading
either iCrap software valued at $4_99 or more or downloading music at $1 or more
from Apple The service will continue to run for free until the user stops
purchasing music and iCrap software at which time it will return to a nominal $1
per minute charged to your credit card Apple’s iWifi will disconnect you and
automatically finalize your credit card bill and charge you once your credit
card is maxed out Apple encourages parents to pre-load their credit card numbers
on their young children’s iCrap for maximum ease of use Apple revolutionized the
iCrap movement by inventing iCrap Wifi MP3 and various other things which were
started by others but generally owned and invented by Apple Like this Reply to
this comment by bananaphonerules November 12 2009 4:44 PM PST Wow Please be a
linux user please be a linux user Like this by Gold_Storm_Mac November 12 2009
4:49 PM PST for real cool Like this by Mr Dee November 12 2009 4:45 PM PST I am
not gonna lie that store looks amazing but I am forever PC The next time I am in
New York I will be stopping by with my Windows 7 Enterprise 90-trial to load it
up on all the Macs in the store I will also do an in store demo of the all the
cool features of Windows 7 and then whisk myself away before they call the cops
Like this Reply to this comment by Gold_Storm_Mac November 12 2009 4:51 PM PST
features that are not offered on the mac like _?don’t get me wrong there will be
a few There just happens to be more on the mac Like this 14 Comments prev 1 next
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Marguerite Reardon has been covering the telecom beat for more than a decade and
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