Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Aug 28, 2012, 12:13 AM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Apple Retail's Emphasis on Profits Continues, Tied to Operational Perspective of Cook and Browett






Earlier this month, we reported on several changes at Apple retail stores that were reportedly seeing some employees being laid off or seeing recent promotions being retracted, while other part-time employees were seeing their hours reduced significantly, in some cases to zero. Our report was followed several days later by an acknowledgement from Apple that the company had "messed up" in adjusting its staffing formulas for its retail stores.

ifoAppleStore now takes a close look at the situation, tying changes in the philosophy of Apple's retail experience to the passing of Steve Jobs and the operational focus of Apple CEO Tim Cook and new retail chief John Browett. At the most basic level, Jobs served as the champion for former retail chief Ron Johnson's vision of Apple stores focused on consumer satisfaction, and without Jobs to protect that vision Apple has slipped into a numbers-focused perspective for its retail operations.
Quote:
Johnson was champion of customer satisfaction, designing and staffing the stores to provide a superior experience for visitors and buyers alike. He was able to win over Steve Jobs with the concept that revenue and profit should be a secondary goal of Apple's retail stores.

But in 2009, Jobs took six months of medical leave and put Tim Cook in charge of the company, including the retail stores. Cook is primarily an "operations guy," sources explain, and his natural focus is revenues and profits, not customers. While Jobs was away, Cook and chief financial officer Peter Oppenheimer began to confront Johnson on his customer-centric retail philosophy--both felt the stores didn't generate enough revenues to justify operating expenses.
The report claims that Cook hired Browett to replace Johnson, who departed Apple to lead department store chain JC Penney last year, specifically because of his focus on "traditional concepts of retailing" that prioritize revenues and profits as the key performance metrics.




Tim Cook (left) and John Browett (right)
Even with Apple reportedly having reversed a number of the staffing changes that brought the company such significant publicity earlier this month, stores are reportedly still subject to directives reducing workshop offerings for customers and specifying policies on staff evaluation and compensation that prioritize profits over the customer experience and employee satisfaction.

Article Link: Apple Retail's Emphasis on Profits Continues, Tied to Operational Perspective of Cook and Browett
MacRumors is offline   0 Reply With Quote
Old Aug 28, 2012, 12:15 AM   #2
levitynyc
macrumors 6502a
 
Join Date: Aug 2006
Best Buy values profit over customer satisfaction and look how great they are doing.
levitynyc is offline   83 Reply With Quote
Old Aug 28, 2012, 12:16 AM   #3
appleguy123
macrumors 603
 
appleguy123's Avatar
 
Join Date: Apr 2009
Location: 15 minutes in the future
Browett will destroy the retail store experience for customers. You'd figure that Tim would be smart enough to see this.
__________________
[Steve Jobs was] brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it. -Barack Obama
appleguy123 is offline   94 Reply With Quote
Old Aug 28, 2012, 12:18 AM   #4
BigMcGuire
macrumors 6502
 
Join Date: Jan 2012
And here we are.... the start of $ is more important than the customer experience . Won't be long before there will be justification of a cheaper crappier product to save $....
BigMcGuire is offline   75 Reply With Quote
Old Aug 28, 2012, 12:20 AM   #5
gimliwon
macrumors newbie
 
Join Date: Aug 2012
I've worked at Apple for 4 years.

I appreciate all that Cook has done for the employees, but I will be the first to say that meeting these numbers/profits is not going to bode well for them.

I don't understand the world of business. If your primary goal becomes meeting quotas and percentiles rather than customer satisfaction, how do you ever expect to be a respectable business?

You can make all the beautiful, respectable things in the world.
But if you don't have heart, you don't have anything.

Disappointed.
gimliwon is offline   75 Reply With Quote
Old Aug 28, 2012, 12:20 AM   #6
koban4max
Banned
 
Join Date: Aug 2011
Quote:
Originally Posted by BigMcGuire View Post
And here we are.... the start of $ is more important than the customer experience . Won't be long before there will be justification of a cheaper crappier product to save $....
Till then keep supporting APPLE.
koban4max is offline   2 Reply With Quote
Old Aug 28, 2012, 12:20 AM   #7
spokenblurb
macrumors newbie
 
Join Date: Sep 2011
This is not a good move guys you have more money than you can spend and your on top, keep doing the things that got you there because once the green eyed monster takes over then you become like everyone else.... I'm mean layoffs really browett get your ish together
spokenblurb is offline   36 Reply With Quote
Old Aug 28, 2012, 12:21 AM   #8
chrmjenkins
macrumors 603
 
chrmjenkins's Avatar
 
Join Date: Oct 2007
Location: CA
Let's see how many ways we can alienate faithful customers. Pro users are already complaining.
chrmjenkins is offline   50 Reply With Quote
Old Aug 28, 2012, 12:22 AM   #9
AustinIllini
macrumors Demi-God
 
AustinIllini's Avatar
 
Join Date: Oct 2011
Location: Austin, TX
This just in: Apple is a corporation.

More as this story develops...
__________________
"We pave the sunlit path toward justice together, brick by brick." - Tim Cook
iPhone 6 64GB Space Grey Mid 2014 13" rMBP iPad Mini Retina 32 GB
AustinIllini is offline   11 Reply With Quote
Old Aug 28, 2012, 12:23 AM   #10
gimliwon
macrumors newbie
 
Join Date: Aug 2012
It's the most frustrating thing in the world to watch the company you've served for four years, put your heart into doing well, dissolve into this. I hope they come to their senses and stop these mistakes.

Because that's exactly what they are.

I may know nothing about business, but I do know,
you don't put the dollar before the person.

I may not know much, but I know that.
gimliwon is offline   16 Reply With Quote
Old Aug 28, 2012, 12:24 AM   #11
DeathChill
macrumors 68000
 
Join Date: Jul 2005
Curious about the validity of this report. I have a hard time believing that they were concerned about numbers if they're running one of the most profitable retail stores in the world.
DeathChill is offline   2 Reply With Quote
Old Aug 28, 2012, 12:24 AM   #12
gimliwon
macrumors newbie
 
Join Date: Aug 2012
That's no excuse, Austin. They've been a corporation for over thirty years. And it's never been this bad.
gimliwon is offline   14 Reply With Quote
Old Aug 28, 2012, 12:25 AM   #13
wikus
Banned
 
Join Date: Jun 2011
Location: Planet earth.
Quote:
Originally Posted by chrmjenkins View Post
Let's see how many ways we can alienate faithful customers. Pro users are already complaining.
Pro users have been complaining for years. Its been quite obvious for a long time that Apple doesnt care about users who rely on their macs for their income but would rather cater to the technologically inept with the iToy line.
wikus is offline   13 Reply With Quote
Old Aug 28, 2012, 12:26 AM   #14
Drunken Master
macrumors 65816
 
Drunken Master's Avatar
 
Join Date: Jul 2011
Don't these stores make a ton of money already? They're the most profitable chain retail store per square foot in the U.S.:

http://m.gizmodo.com/5903437/foot-for-foot-apple-stores-rake-in-17x-more-cash-than-other-retail-outlets

This is a big mistake that they're making, but it looks like maybe they'll back off a bit after "screwing up".

Last edited by Drunken Master; Aug 28, 2012 at 12:54 AM.
Drunken Master is offline   10 Reply With Quote
Old Aug 28, 2012, 12:26 AM   #15
WhoDaKat
macrumors regular
 
Join Date: May 2006
This totally makes sense as Apple is struggling to make a profit. Give me a break. Glass cubes, giant stores in Grand Central Station, and architectural innovating buildings is not the way you go to maximize profits, and thats not the point of these highly successful retail outlets. Its shock and awe, its getting the products into the hands of consumers so they can "play" with them. To do this is to understand why Apple products are so successful. Nickeling and dimeing consumers is the surest way Apple can shoot themselves in the foot.

Tim, your consumers made Apple the biggest company in the world, and we fight the good fight for you all over the internet (there are no fans like Apple fans) but if you even give off the appearance that you are trying to increase your already sky high profits, then you risk it all sir. You should fire this douche Browett and quit worrying about retail stores profits. Their job is to showcase... obviously the profits will come.
WhoDaKat is offline   62 Reply With Quote
Old Aug 28, 2012, 12:26 AM   #16
Mark Booth
macrumors 65816
 
Mark Booth's Avatar
 
Join Date: Jan 2008
I worked retail for 35 years before retiring in 2009. Everything I read and everything in my customer service "gut" tells me that Browett is the wrong person to head Apple retail.

Mark
Mark Booth is offline   56 Reply With Quote
Old Aug 28, 2012, 12:28 AM   #17
ECUpirate44
Banned
 
Join Date: Mar 2010
Location: NC
Quote:
Originally Posted by gooberwilson View Post
Steve Jobs would've never allowed this.
This is the only time this comment is appropriate. Not sure what cook is thinking letting Browett do this....

----------

Quote:
Originally Posted by WhoDaKat View Post
This totally makes sense as Apple is struggling to make a profit. Give me a break. Glass cubes, giant stores in Grand Central Station, and architectural innovating buildings is not the way you go to maximize profits, and thats not the point of these highly successful retail outlets. Its shock and awe, its getting the products into the hands of consumers so they can "play" with them. To do this is to understand why Apple products are so successful. Nickeling and dimeing consumers is the surest way Apple can shoot themselves in the foot.

Tim, your consumers made Apple the biggest company in the world, and we fight the good fight for you all over the internet (there are no fans like Apple fans) but if you even give off the appearance that you are trying to increase your already sky high profits, then you risk it all sir. You should fire this douche Browett and quit worrying about retail stores profits. Their job is to showcase... obviously the profits will come.
This 100%
ECUpirate44 is offline   38 Reply With Quote
Old Aug 28, 2012, 12:28 AM   #18
darbus69
macrumors regular
 
Join Date: Mar 2009
so the days in which an apple store employee gave me $1 in quarters for the parking meter are over? cook and browett might want to sleep lightly because the ghost of Jobs is going to be out for their souls!
darbus69 is offline   20 Reply With Quote
Old Aug 28, 2012, 12:29 AM   #19
striker33
macrumors 65816
 
Join Date: Aug 2010
With all the quality control issues with the retina iPad and Macbook Pros, it was already blatantly obvious that Apple are all about the $$$ now.

The production of their products has been ramped up so much by Cook that the quality of the products is suffering. No doubt the next iPhone will be met by various build issues.
__________________
6th rMBP returned. 3rd iPhone 5 returned. Gone back to the trusty 4S. Tim Cook sucks.
striker33 is offline   7 Reply With Quote
Old Aug 28, 2012, 12:30 AM   #20
Rot'nApple
macrumors 65816
 
Rot'nApple's Avatar
 
Join Date: Dec 2006
Location: I DID build that!
Well, Apple does have to consider quotas and percentiles as a way to measure profits that they need to meet so Apple can cover the promotional pay increase that engineering vice presidents Craig Federighi and Dan Riccio who are joining the company's Executive Team as senior vice presidents will be receiving.
/
/
Rot'nApple is offline   4 Reply With Quote
Old Aug 28, 2012, 12:31 AM   #21
darbus69
macrumors regular
 
Join Date: Mar 2009
Quote:
Originally Posted by ecupirate44 View Post
this is the only time this comment is appropriate. Not sure what cook is thinking letting browett do this....

----------



this 100%
ditto

pass it in and on and on.
darbus69 is offline   4 Reply With Quote
Old Aug 28, 2012, 12:31 AM   #22
Peace
macrumors P6
 
Peace's Avatar
 
Join Date: Apr 2005
Location: Space--The ONLY Frontier
We're not in it to make tons of money. We're in it to make a quality product.


---Tim Cook
Peace is offline   8 Reply With Quote
Old Aug 28, 2012, 12:32 AM   #23
EnderTW
macrumors 6502
 
Join Date: Jun 2007
Tim cook isn't Scully but they come from the same line of thinking.

Steve you will be missed.
EnderTW is offline   32 Reply With Quote
Old Aug 28, 2012, 12:34 AM   #24
iRobby
macrumors 6502a
 
iRobby's Avatar
 
Join Date: Mar 2011
Location: Fort Myers, FL USA
Quote:
Originally Posted by ECUpirate44 View Post
This is the only time this comment is appropriate. Not sure what cook is thinking letting Browett do this....

----------



This 100%


Don't blame Browett!!

I'm sad to say, but according to the article this change was pushed by Cook and Oppenheimer long BEFORE Browett!

Looks like they had and still do a have a difference of opinion with Johnson on retail so they forced him out and hired Browett knowing he fit their ideology.

A real bad sign!
__________________
15" MacBook Pro Retina (2012) 2.3GHz, 8GB RAM; 256GB SSD
iPhone 6 Plus Space Gray 64GB AT&T
iPad (3rd Generation) White 64GB Verizon
Airport Extreme (5th Gen.)
iRobby is offline   22 Reply With Quote
Old Aug 28, 2012, 12:35 AM   #25
BlazednSleepy
macrumors 6502a
 
Join Date: Apr 2012
This is like spitting on Steve Jobs grave. It's a REAL shame to hear apple moving in this direction. The number 1 reason I buy apple products is for the OVERALL EXPERIENCE.

Damn.
BlazednSleepy is offline   27 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Tim Cook Angrily Rejects Political Proposal Asking for Profits-First Policies MacRumors Politics, Religion, Social Issues 450 Mar 5, 2014 07:49 AM
John Browett Reflects on Lessons From Brief Stint as Apple Retail Chief MacRumors MacRumors.com News Discussion 97 Mar 19, 2013 10:53 PM
Former Apple Retail VP John Browett Takes Executive Job at UK Fashion Retailer MacRumors Mac Blog Discussion 52 Feb 18, 2013 12:40 PM
Tim Cook: Apple Retail is 'The Face of The Company' MacRumors MacRumors.com News Discussion 37 Feb 14, 2013 04:58 PM
Retail Chief John Browett Receives First Disbursement of Signing Bonus Apple Stock MacRumors Mac Blog Discussion 82 Oct 29, 2012 11:17 PM

Forum Jump

All times are GMT -5. The time now is 11:22 AM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC