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  • Apple Wants to Sell Half of All iPhones Through Its Retail Stores


    Apple CEO Tim Cook isn't pleased with how many iPhones are sold at Apple's retail stores.

    Despite boasting the most lucrative square footage across the global retail landscape, Apple wants to do bigger business at these locations when it comes to moving units of the company's iPhone.

    As of the most recent data available, only 20 percent of all iPhones are sold through Apple Stores. Cook wants to eventually see that number balloon to more than 50 percent.

    As of May 2013, Apple has 406 Apple Stores worldwide. Although that's not a miniscule retail presence by any stretch of the imagination, is it realistic to think that Apple could sell a majority of its iPhones - on a global scale - at these stores, particularly when millions of consumers don't live within a reasonable distance from the closest Apple Store?

    According to new analysis shared with AllThingsD by Consumer Intelligence Research Partners (CIRP), raising Apple Store iPhone sales to the level Cook is asking is a potentially difficult proposition.
    "Apple has about 250 retail locations — most, if not all, very well-trafficked," says John Paczkowski of All Things D. "But its carrier partners together have about 9,000... Add to that 1,000 or so Best Buy stores, and a bunch of other retail outlets like RadioShack, and Apple’s plan to claim iPhone sales share from its resellers seems a tough one to execute without a drastic increase in the size of the company’s retail footprint."

    Source: AllThingsD
    This article was originally published in forum thread: Apple Wants to Sell Half of All iPhones Through Its Retail Stores started by Michael Essany View original post
    Comments 27 Comments
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Isn't buying online from apple.com just a lot easier?
    1. AdonisBlue's Avatar
      AdonisBlue -
      I'm pretty sure most people buy phones from their respective carrier due to being subsidized, So I don't see how this is even a logical thought to focus on...
    1. i3exa's Avatar
      i3exa -
      Quote Originally Posted by AdonisBlue View Post
      I'm pretty sure most people buy phones from their respective carrier due to being subsidized, So I don't see how this is even a logical thought to focus on...
      You can still buy subsidized through your carrier through the apple website
    1. Donnutt's Avatar
      Donnutt -
      I haven't gone into a physical store to buy an iPhone since my first one, a 3GS. I've just bought them online, and then activated through iTunes. My iPhone 5 had not been connected to a computer until I installed iOS 7 on it. iCloud is the bomb!
    1. slim.jim's Avatar
      slim.jim -
      Why camp out when you can just pre-order online and get it the same day it releases? It's so much easier to order online and its free shipping.
    1. docmagoo2's Avatar
      docmagoo2 -
      I buy my phone outright from apple. Means I'm not tied to a ****** contract with a ****** service provider
    1. bigboyz's Avatar
      bigboyz -
      Im not sure how this even got on the table but I think its weird. Its 2013, we buy groceries online. Why would I go, wait in a line when I can just order online and go about my business? Seems like Apple wants to keep up its retail dominance by opening and hiring more all around. I guess when you offer one phone compared to hundreds that the competition has, having a retail chain presence is part of the success?
    1. AdonisBlue's Avatar
      AdonisBlue -
      Quote Originally Posted by i3exa View Post
      You can still buy subsidized through your carrier through the apple website
      Yeeeah, exactly......

      Quote Originally Posted by docmagoo2 View Post
      I buy my phone outright from apple. Means I'm not tied to a ****** contract with a ****** service provider
      Do you change carriers frequently? I'm happy with my provider and have no plans to change anytime soon so I don't see how a contract that saves me money is harmful in anyway...

      But those points have little to do with the article...
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      I think i got my first two iPhones from an AT&T store (3 & 3gs). I've bought pretty much all iphones for the family on apple's website. Unless there is a discount going on at bestbuy or walmart. Then it just make economical sense to go to a third party store. I really believe apple should price match other stores, but they'd start losing money on each phone if they did that I guess. How can you compete with bestbuy if they are offering an iphone 5 for $99? Free if you trade in your old phone, which you shouldn't do by the way because you can get more your old phone on ebay.

      Quote Originally Posted by docmagoo2 View Post
      I buy my phone outright from apple. Means I'm not tied to a ****** contract with a ****** service provider
      Buy a GSM enabled unlocked phone from apple. No contracts, and you have more options for GSM carriers.
    1. hitman10's Avatar
      hitman10 -
      why buy a phone from apple when best buy gives you the same thing but a couple bucks cheaper and normally comes with a case or some type of extra incentive. You can easily take your iphone you bought at best buy to apple and get it serviced.
    1. joshlogic's Avatar
      joshlogic -
      The logic is simple: If they can get you into the store there is a much higher probability that you will buy accessories and Apple Care/iTunes Match/etc. The phone purchase is simply more profitable for them with the potential add-ons than if a customer orders it online. It's not hard to see why they'd want you to come in.
    1. zeroskater61's Avatar
      zeroskater61 -
      I always go to my local carrier store simply because its blocks away from my house (5min drive) and an apple store is well over a 35min-60min drive some times longer depending on traffic.
    1. Rickyfl84's Avatar
      Rickyfl84 -
      Quote Originally Posted by AdonisBlue View Post
      Yeeeah, exactly......



      Do you change carriers frequently? I'm happy with my provider and have no plans to change anytime soon so I don't see how a contract that saves me money is harmful in anyway...

      But those points have little to do with the article...


      How does a contract saves you money....? In what planet do you live? It's been proven tirelessly that buying a fully unlocked iPhone and going prepaid saves you a lot more money than being stuck with a carrier for two whole years paying a **** load of money....
    1. pizzafootbal's Avatar
      pizzafootbal -
      Quote Originally Posted by slim.jim View Post
      Why camp out when you can just pre-order online and get it the same day it releases? It's so much easier to order online and its free shipping.
      Plus Apple stores aren't accessible to everyone. The closest one to me is about 30 minutes away, which is a bit annoying.
    1. steve-z17's Avatar
      steve-z17 -
      There's no real reason to drive to an Apple retail store to purchase an iPhone when you can easily order one online. Maybe Apple needs to create an incentive for people to come to the store and buy an iPhone. There nearest one to me is like 35 min away, so unless they're offering me something to drive there I'll stick to ordering online.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Rickyfl84 View Post
      How does a contract saves you money....? In what planet do you live? It's been proven tirelessly that buying a fully unlocked iPhone and going prepaid saves you a lot more money than being stuck with a carrier for two whole years paying a **** load of money....
      This is how:

      On Contract: $200 + ($86 x 24) = $2,264. After 2 years, unlock iPhone from carrier.

      Outright: $650 + ($86 x 24) = $2,714.

      I'm not stuck with the carrier. I have been with AT&T since past 9 years and have the same number. If any other carrier can beat that price (I have two lines btw, one iPhone and one dumb phone), I'll switch. Oh and I have unlimited data plan and have never gone past 5gb.
    1. thetoothfairy's Avatar
      thetoothfairy -
      I always order online because the nearest Apple store is about two hours away. I do not want to stand in a huge long line to buy my phone or stand there for a long time to find out that they just ran out.

      Apple wanted their iDevices at lots of stores and now they want their stores to sell at least 50% of the iPhone or more?

      If Apple wants this then they are going to have to open more Apple stores.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by thetoothfairy View Post
      I always order online because the nearest Apple store is about two hours away. I do not want to stand in a huge long line to buy my phone or stand there for a long time to find out that they just ran out.

      Apple wanted their iDevices at lots of stores and now they want their stores to sell at least 50% of the iPhone or more?

      If Apple wants this then they are going to have to open more Apple stores.
      Exactly. Nearest apple store from me is about an hour away. Nearest att store is 30 min away. Nearest best buy is 15 min away. Nearest computer is 2 min away (time to turn it on). Nearest phone is 15 seconds away.
    1. slim.jim's Avatar
      slim.jim -
      I guess I'm lucky then, there are 3 Apple stores within 30mins of me, one is only 15mins. At least 4 AT&T stores within 15mins and at least 2 Best Buy within 30, again one is only 15 mins.
    1. 8lias's Avatar
      8lias -
      We are not talking about selling more iPhones, we are talking about selling more iPhones AT the Apple Store, here are why:

      1. Carriers tend to sway customers away from the iPhone, more incentives selling Androids instead.
      2. iPhones purchased from the Carriers tend to have more "Operator Error Syndrome" because it wasn't set up properly (Apple ID, iCloud, iTunes, etc.) and ended up coming to Apple Store for help.
      3. AppleCare+ is a better choice than $10+/month for insurance AND a $170+ deductible and you received a refurbished replacement from Asurion instead of walking into an Apple Store. The downside is AppleCare+ doesn't cover lost/stolen phone. Damaged phones are more common than lost phones.
      4. Screen Protection and Otterbox are fugly on an iPhone. Apple don't MAKE you buy those accessories.
      5. Education, education, and education. They provide FREE workshops and Set Ups so you can LEARN to use your phone. None of the sales people at Apple are on commission.
      6. They work with all 4 major carriers so you can compare pricing and coverage area without bias.
      7. They are "mostly" have the phones in stock.

      For advanced users, I do agree on ordering it online and not having to deal with lines and hassles. Tim Cook is simply referring to an average user who goes to their carrier and only being talked out of getting an iPhone because the Sales Rep gets more incentives selling other devices. Average consumers aren't fully getting the most out of their iPhones at an Carrier because it's most Reps don't spend the time to help them.