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Old Jul 3, 2013, 03:35 PM   #1
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Apple Prepping to Launch New iPhone Incentive Programs, Has an 'Army' of Products in the Works




Apple executives Tim Cook, Eddy Cue, and Craig Federighi spoke to Apple Retail Store leaders about upcoming changes to Apple's iPhone marketing tactics during a summit at San Francisco's Fort Mason on June 27, reports 9to5Mac.

A photo taken of the Fort Mason meeting, via Noble Brown.
During the meeting, CEO Tim Cook noted 80% of iPhones are sold at third party locations, a figure that he would like to improve in the future with new iPhone promotional tactics.
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The iPhone is Apple's central "gateway product" to other devices like iPads and Macs, so it is critical that the Apple smartphone is sold via an Apple Store so new customers are immediately exposed to iPads, Macs and other devices on the showroom floor. Even though 80% of iPhones are not sold at Apple Stores, 50% of all serviced iPhones are troubleshooted, repaired, or replaced at Apple Store Genius Bars. Cook reportedly hinted that he would like those numbers to be more in line.
Apple is planning to boost iPhone sales with various incentive programs, including the recently launched Back to School promotion that includes the iPhone for the first time and an upcoming in-store trade-in program. The company may also extend its price matching policies, which debuted in the U.S. last summer, internationally.

Along with new iPhone discount and sales strategies, Apple also plans to heavily market iOS 7 when it is released in the fall and introduce new retail locations in Europe.

According to store leaders who were at the summit, Apple has an "army of new products" in the works, which may include the upcoming iPhone 5S, a redesigned fifth generation iPad, a low cost iPhone, and a refreshed line of MacBook Pros, among other products.

Article Link: Apple Prepping to Launch New iPhone Incentive Programs, Has an 'Army' of Products in the Works
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Old Jul 3, 2013, 03:38 PM   #2
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iphone Def turned me onto a mac but thats because it was the only thing I could use xcode with (Now that I have used it I wouldnt go back).


Still with that in mind I can honestly say I have never purchased anything from a mac store they are always the very most expensive for anything.
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Old Jul 3, 2013, 03:41 PM   #3
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Don't forget iWatch and iTV!
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Old Jul 3, 2013, 03:41 PM   #4
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80%? That's not surprising considering most people buy their phone from their carrier, not the manufacturer.
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Old Jul 3, 2013, 03:42 PM   #5
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My join date on this site was purely due to having bought the original iPhone. Five days later, I was the owner of a 15"MBP all because of that iPhone.
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Old Jul 3, 2013, 03:42 PM   #6
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I'm buying two iPhones on Friday. I wish they'd quit dicking around and just make some announcements. The $50 iTunes gift card is nice, but I want something more!
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Old Jul 3, 2013, 03:44 PM   #7
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As a former Apple employee, I'll say this:

While Cook's vision is of making Apple Retail a destination for consumers, the numbers they show here indicates that it serves only as a destination for service and support. Until Apple can find a way to raise the standard of Retail and make it a uniformly pleasant experience for customers (by increasing hiring standards for the employees and raising compensation to draw desirable candidates), the stores will continue to be only visited out of necessity. Apple Retail has come a long way since it started, but has in the past five years since iOS was released, they have shown that they still have plenty to learn.
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Old Jul 3, 2013, 03:47 PM   #8
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Quote:
Originally Posted by theipodgod16 View Post
As a former Apple employee, I'll say this:

While Cook's vision is of making Apple Retail a destination for consumers, the numbers they show here indicates that it serves only as a destination for service and support. Until Apple can find a way to raise the standard of Retail and make it a uniformly pleasant experience for customers (by increasing hiring standards for the employees and raising compensation to draw desirable candidates), the stores will continue to be only visited out of necessity. Apple Retail has come a long way since it started, but has in the past five years since iOS was released, they have shown that they still have plenty to learn.
My experience has been entirely the opposite. At least when it comes to iPhones, I much rather deal with somebody at an Apple Store versus a carrier or big box retailer.

That said, I imagined this dissonance was mostly a matter of convenience: my carrier has locations everywhere but there's only one Apple store. Doesn't really matter where I get the phone, so why not choose the easiest solution possible. For repairs, I know I'm going to have a much quicker and smoother experience going directly to Apple, so I'm willing to go out of my way.
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Old Jul 3, 2013, 03:48 PM   #9
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I started out by telling a friend's kid to shut up about it or show me that silly Apple toy (iPod Touch).

Three days later I had an iPhone. Three months later, my first Mac. First customer in Europe to have an iPad, then iPad 2, later 4, three years later another Mac and iPhone 5, just to round out the circle of addition.

It's true about the "gateway".
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Old Jul 3, 2013, 03:50 PM   #10
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Quote:
Originally Posted by theipodgod16 View Post
As a former Apple employee, I'll say this:

While Cook's vision is of making Apple Retail a destination for consumers, the numbers they show here indicates that it serves only as a destination for service and support. Until Apple can find a way to raise the standard of Retail and make it a uniformly pleasant experience for customers (by increasing hiring standards for the employees and raising compensation to draw desirable candidates), the stores will continue to be only visited out of necessity. Apple Retail has come a long way since it started, but has in the past five years since iOS was released, they have shown that they still have plenty to learn.
Perhaps I'm alone in this sentiment but I've always found Apple Stores to be welcoming, friendly, and helpful. Plus it gives me a chance to try out products I could never hope to afford; so it's definitely not out of necessity!

However as you're a former Apple employee I have no doubt you know a lot more about what goes on behind the scenes. It would be extremely rude and unprofessional for me to ask you about 'horror' stories you had when working for Apple

but I'll ask you anyway Any chance of giving these humble MR members an insight about some of the goings-on?
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Old Jul 3, 2013, 03:50 PM   #11
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well duh it has nothing to do with apples approach. Carriers seem to insist on buying your phone from them with a contract and offer subsidies.

You can't just sell more without interrupting that in some way to offer subsidies direct from the apple store!
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Old Jul 3, 2013, 03:51 PM   #12
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If Apple wants new iPhone customers to be exposed to iPads, Macs, iWatches, and other Apple products, getting them to buy their iPhones at an Apple Store isn't the only approach. Getting more Apple products into other retail environments can serve the same purpose. Apple would have less control over the experience, but there are a lot of consumers who aren't close to an Apple Store.
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Old Jul 3, 2013, 03:52 PM   #13
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Apple needs to accelerate store openings in small cities that are outside a two hour drive of other Apple retail stores.
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Old Jul 3, 2013, 03:53 PM   #14
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Excited to see

Lets get some new iPhones ROCKING out this year!!!!!

I think there is a lot of "skunk-works" projects in the pipe right now and excited to see whats what come release date.

The numbers are not surprising as noted with most getting phones from carriers.

I personally would love to see more "aggressive" advert tactics on the Apple front.

And BTW, almost EVERY Apple product I have bought was either a "direct or indirect" result of my original iPhone purchase as every device perfectly complimented the other magically. It literally made working WITH all of the devices all that much better (when I say "devices" I mean computers, laptops, iPad's, etc.) because they were so in tune with one another.
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Old Jul 3, 2013, 03:56 PM   #15
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Quote:
Originally Posted by alexgowers View Post
well duh it has nothing to do with apples approach. Carriers seem to insist on buying your phone from them with a contract and offer subsidies.

You can't just sell more without interrupting that in some way to offer subsidies direct from the apple store!
Not sure if it works for all markets and/or carriers, but from my experience (Rogers in Canada) you can do this. I can purchase a subsidized phone, upgrade early, change my contract, and so on directly at the Apple Store.
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Old Jul 3, 2013, 03:57 PM   #16
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The iPhone is most certainly a gateway drug. After buying my 3GS I saved up my money until I could afford a MacBook and as soon as the 15" Retina dropped I bought one.
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Old Jul 3, 2013, 03:57 PM   #17
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80%? That's not surprising considering most people buy their phone from their carrier, not the manufacturer.
True, and especially since at new product launch Apple lets the carriers offer it on their sites for preorder for launch day delivery.

As much as I'd rather order and buy from Apple, I did buy 2 iP4's from AT&T on their website in order to sign up for my company's plan discount. I also bought my iP5 from T-mobile in store to get the discounted "full" price at launch. The fact that I wanted to make sure I got the right plan setup from the carrier drove me to their stores rather than to Apple.

I'm not so sure a new product launch is the right timeframe to try to hook customers on new products. The stores are usually so overrun that it's not a good time to browse and ask questions about other devices.
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Old Jul 3, 2013, 04:00 PM   #18
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Originally Posted by keysofanxiety View Post
Perhaps I'm alone in this sentiment but I've always found Apple Stores to be welcoming, friendly, and helpful. Plus it gives me a chance to try out products I could never hope to afford; so it's definitely not out of necessity!

However as you're a former Apple employee I have no doubt you know a lot more about what goes on behind the scenes. It would be extremely rude and unprofessional for me to ask you about 'horror' stories you had when working for Apple

but I'll ask you anyway Any chance of giving these humble MR members an insight about some of the goings-on?
I have always thought Apple stores would be well-served by the 'In-N-Out' model of employment. Well-compensated (relatively speaking) employees are happy, helpful, productive employees.
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Old Jul 3, 2013, 04:00 PM   #19
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For most the iPhone was a gateway
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Old Jul 3, 2013, 04:00 PM   #20
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Quote:
Originally Posted by Doctor Q View Post
If Apple wants new iPhone customers to be exposed to iPads, Macs, iWatches, and other Apple products, getting them to buy their iPhones at an Apple Store isn't the only approach. Getting more Apple products into other retail environments can serve the same purpose. Apple would have less control over the experience, but there are a lot of consumers who aren't close to an Apple Store.
This is true but what other retails stores can sell Apple products? Walmart and Target?
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Old Jul 3, 2013, 04:01 PM   #21
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Originally Posted by Kranchammer View Post
I have always thought Apple stores would be well-served by the 'In-N-Out' model of employment. Well-compensated (relatively speaking) employees are happy, helpful, productive employees.
Instilling happiness in employees is much more than a matter of monetary compensation.
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Old Jul 3, 2013, 04:02 PM   #22
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"army of new products"

Wouldn't it be more appropriate to say that those items mentioned in the article are simply updated/refreshed products (except the 'lower-cost' iPhone) as opposed to actual new products?
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Old Jul 3, 2013, 04:04 PM   #23
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I think the way cook is heading is correct. His idea of retail is bang on as he's working more towards the employee's which makes us more happier. Now as apple continues to strength their retail presence Tim Cook has actually cared about us (the retail folks) by adding additional perks, days off and others. It may be different from person to person but my view of Cook is positive.

Last edited by thedeejay; Jul 3, 2013 at 04:47 PM.
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Old Jul 3, 2013, 04:05 PM   #24
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This is what this guy is good at.. marketing stuff
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Old Jul 3, 2013, 04:08 PM   #25
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Uh Oh

80% of iPhones are purchased outside the Apple Store, yet 50 or 60% of Genius Bar requests are from iPhones not purchased at the store? I sense a policy change that will screw customers.
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