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Apple Retail's Effort to Boost Share of U.S. iPhone Sales Starts Paying Dividends

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MacRumors

macrumors bot
Original poster
Apr 12, 2001
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Over the course of the last several months, Apple has improved its in-store iPhone sales, according to a new survey from Consumer Intelligence Research Partners (via AllThingsD). Approximately 25 percent of iPhones are purchased within an Apple Store, up from an estimate of 20 percent earlier this year.

The majority of iPhones in the United States are still sold through carriers, however, with AT&T responsible for 21 percent of sales and Verizon responsible for 18 percent. Best Buy's iPhone sales accounted for 13 percent of total sales, and Sprint, Amazon, and other mass retailers like Target, Walmart, and Costco accounted for 5 percent each.
iphone5s5c.png

Carriers also sell the most overall cell phones, but Apple, though it only sells the iPhone, accounts for a total of 11 percent of all retail phone sales.

Back in July, Apple CEO Tim Cook told employees that he would like to improve Apple Store iPhone sales with new promotional tactics. According to Cook, the iPhone is Apple's central "gateway product" to other devices like iPads, which makes it vital that users purchase their iPhones where they can be exposed to other Apple products.

To encourage sales within Apple retail locations, Apple has launched new features for its Apple Store app, including an iPad version, and debuted an in-store trade-in program in August with the goal of improving the company's U.S. sales numbers.

Though Apple has seen slight improvements in in-store iPhone sales, further increasing iPhone sales within Apple Stores remains an uphill battle as Apple has roughly 250 retail stores in the United States that compete with more than 10,000 third-party retail outlets that offer the iPhone.

Article Link: Apple Retail's Effort to Boost Share of U.S. iPhone Sales Starts Paying Dividends
 
Article Link
https://www.macrumors.com/2013/11/25/apple-retails-effort-to-boost-share-of-u-s-iphone-sales-starts-paying-dividends/
Last edited:
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samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
I'm going to go out on a limb and say that most people who are still grandfathered with unlimited data will always upgrade via their carrier store. While other options may be available - it's the only "guaranteed" way to not have a headache.

No idea what percentage of people this is - but that's my .02
 
F

fh-ace

macrumors newbie
Nov 21, 2011
23
22
Work via Apple Store also.

Every time my wife and I have upgraded, we've done it at the Apple store. No problems with the unlimited data grandfather clause and never been a headache.:)

samcraig said:
I'm going to go out on a limb and say that most people who are still grandfathered with unlimited data will always upgrade via their carrier store. While other options may be available - it's the only "guaranteed" way to not have a headache.

No idea what percentage of people this is - but that's my .02
Click to expand...
 
Solomani

Solomani

macrumors 601
Sep 25, 2012
4,785
10,477
Slapfish, North Carolina
Not really sure why it matters if an iPhone is sold directly by Apple Retail or through a carrier like Sprint. In both cases, that's an Apple iPhone sold.

Is there some huge profit margin advantage for having an iPhone sold directly by Apple rather than through an authorized carrier/reseller? After all, those carriers like Sprint are PAYING Apple gazillions of dollars for the privilege of getting to sell the iPhone handsets.
 
S

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
fh-ace said:
Every time my wife and I have upgraded, we've done it at the Apple store. No problems with the unlimited data grandfather clause and never been a headache.:)
Click to expand...

Cool. Not sure I'd say that's a rule as I know plenty of people who have had glitches. I'm glad it's not universal.
 
C

Cougarcat

macrumors 604
Sep 19, 2003
7,766
2,553
I wonder how much of this is due to the fact that you couldn't preorder a 5S this year.


Solomani said:
Not really sure why it matters if an iPhone is sold directly by Apple Retail or through a carrier like Sprint. In both cases, that's an Apple iPhone sold.
Click to expand...

I think the idea is that if you come to an Apple Store, you are more likely to try out otherApple stuff.
 
M

mbh

macrumors 6502
Jul 18, 2002
400
73
Solomani said:
Not really sure why it matters if an iPhone is sold directly by Apple Retail or through a carrier like Sprint. In both cases, that's an Apple iPhone sold.
Click to expand...

I think Apple wants to control the experience. If you go to the carrier you may not get straight information about the Apple product, depending on whoever you deal with there. They may have ulterior motives to push one product over another. If Apple can get the customer into the Apple store that issue goes away.
 
O

obiegrad

macrumors newbie
Jun 7, 2012
22
0
The problem here I think is largely that other stores are discounting iPhones. When Best Buy or Target or Walmart knock $50 off the price who is going to buy it at the Apple Store?

As far as the account issues though, I actually think it's easier to get the phone from Apple, they have less incentive to stack the bill then the carriers do.
 
T

tai.michael

macrumors member
Oct 8, 2008
34
0
MacRumors said:
Back in July, Apple CEO Tim Cook told employees that he would like to improve Apple Store iPhone sales with new promotional tactics.
Click to expand...

Why don't you focus on making a better product instead of marketing? People got iPhones and iPads because the other alternatives were terrible in comparison. Sure, promotions help, but Steve Jobs understood the importance of product design and innovation.

Make something meaningful. That's why everyone used to love Apple so much.
 
V

Vctr

macrumors regular
May 24, 2012
209
2
Don't you guys read the whole article?
According to Cook, the iPhone is Apple's central "gateway product" to other devices like iPads, which makes it vital that users purchase their iPhones where they can be exposed to other Apple products.
Click to expand...
 
citi

citi

macrumors 65816
May 2, 2006
1,363
508
Simi Valley, CA
tai.michael said:
Why don't you focus on making a better product instead of marketing? People got iPhones and iPads because the other alternatives were terrible in comparison. Sure, promotions help, but Steve Jobs understood the importance of product design and innovation.

Make something meaningful. That's why everyone used to love Apple so much.
Click to expand...

Yeah, those iPads are horrible. iPad Air? Meh. Retina Mini? I wouldn't even let my infant play with it. Not worth her time. That's why there are so many in stock. Apple practically has to give them away. :rolleyes:
 
Rocketman

Rocketman

macrumors 603
Dec 2, 2001
6,191
1,186
Claremont, The intellectual capitol of the world.
article said:
Though Apple has seen slight improvements in in-store iPhone sales, further increasing iPhone sales within Apple Stores remains an uphill battle as Apple has roughly 250 retail stores in the United States that compete with more than 10,000 third-party retail outlets that offer the iPhone.
Click to expand...
So Apple's 11% share of all phone sales within Apple stores is an extraordinary accomplishment! Right?

Rocketman
 
2

2457282

Suspended
Dec 6, 2012
3,327
3,015
I bought my 2 3GS and 1 4S through AT&T. This time I bought a 5s and a 5c in the Apple Store. Partly because of the trade in program. I will say that I much prefer the Apple experience to the AT&T experience -- Friendlier, more knowledgable, not trying to sell me something else, and helpful wih questions. I will buy my Apples at Apples from now on :D
 
C

currentinterest

macrumors 6502a
Aug 22, 2007
682
664
I believe Apple Stores price match for iPhones, but one has to have evidence of the lower price and request it. Please correct me if I am wrong.
 
brewcitywi

brewcitywi

macrumors 6502
Sep 29, 2007
304
68
re: Apple Store iPhone purchases

We're on a pretty restrictive plan...AT&T's business plan, where everyone's phones get tracked separately, but you had to go to an AT&T store or kiosk with user names and passwords in order to qualify for upgrades.

The last time I went to an Apple Store, they had all the AT&T business data right there. It was a pretty big convenience. If that's how it works, I'll always buy my iPhones from an Apple Store. I'm not trying to knock on AT&T, but the traffic and wait times at their stores and kiosks can be pretty bad.
 
Rogifan

Rogifan

macrumors Penryn
Nov 14, 2011
24,149
31,205
tai.michael said:
Why don't you focus on making a better product instead of marketing? People got iPhones and iPads because the other alternatives were terrible in comparison. Sure, promotions help, but Steve Jobs understood the importance of product design and innovation.

Make something meaningful. That's why everyone used to love Apple so much.
Click to expand...

So iPhones and iPads were meaningful when Steve announced them but now they're not anymore? Touch ID isn't meaningful? The 600+ page patent filing talking about all sorts of ways Apple wants to further integrate touch id into Apple products isn't meaningful? The recent acquisition of PrimeSense isn't meaningful? What would be meaningful to you?
 
gnasher729

gnasher729

Suspended
Nov 25, 2005
17,980
5,565
tai.michael said:
Why don't you focus on making a better product instead of marketing? People got iPhones and iPads because the other alternatives were terrible in comparison. Sure, promotions help, but Steve Jobs understood the importance of product design and innovation.

Make something meaningful. That's why everyone used to love Apple so much.
Click to expand...

Marketing works. Look at Samsung. They are outspending anyone in the marketing department.
 
W

wikiverse

macrumors 6502a
Sep 13, 2012
690
955
Solomani said:
Not really sure why it matters if an iPhone is sold directly by Apple Retail or through a carrier like Sprint. In both cases, that's an Apple iPhone sold.

Is there some huge profit margin advantage for having an iPhone sold directly by Apple rather than through an authorized carrier/reseller? After all, those carriers like Sprint are PAYING Apple gazillions of dollars for the privilege of getting to sell the iPhone handsets.
Click to expand...


Even if there is only $20 extra profit in it, if they sell 10 Million iPhones online and in-store, that's an extra $200 Million of pure profit. (A Billion Dollars every 5 years).

Would you want to make an extra Billion every few years just by selling more phones directly?
 
Solomani

Solomani

macrumors 601
Sep 25, 2012
4,785
10,477
Slapfish, North Carolina
gnasher729 said:
Marketing works. Look at Samsung. They are outspending anyone in the marketing department.
Click to expand...


And Apple could learn another successful marketing tactic from Samsung. Hire some thin anorexic nubile Asian female models to advertise iPhones and iPads, dammit! It borders on sleazy, but sex sells. I'm no Samsung fan, but I will give credit when Samsung is doing something effective. Sleazy or not. :D

C'mon Apple, step up your marketing game!


samsung-haptic-pop-phones-som-dambi.jpg


l3-0.jpg


MODELS-hold-samsung-smartphones.jpg


7133631691_55bdd26e60_z.jpg


samsung-smart-tv-girl.png
 
kemal

kemal

macrumors 68000
Dec 21, 2001
1,826
2,221
Nebraska
My mother recently scored a gold iPhone at Target. Considering how complicated the process is porting a number from Sprint business to Verizon consumer shared, the process went well. The credit goes to the skill of the Target staff.
 
9

9000

macrumors 6502a
Sep 29, 2013
519
0
Hyrule
Solomani said:
And Apple could learn another successful marketing tactic from Samsung. Hire some thin anorexic nubile Asian female models to advertise iPhones and iPads, dammit! It borders on sleazy, but sex sells. I'm no Samsung fan, but I will give credit when Samsung is doing something effective. Sleazy or not. :D

C'mon Apple, step up your marketing game!


Image

Image

Image

Image

Image
Click to expand...

Those are anorexic? Should I start worrying about most of the females I know? :eek:

----------

The title is kinda weird. I thought it meant they boosted the stock dividends as a result.
 
B

booyahbooyah

macrumors regular
Sep 11, 2011
128
9
I'm sorry to say this, but if Apple needs to rely on in-store sales for profitability, then it's doomed.

The stores were conceived principally as places to let consumers play with Apple products.

When they start competing with their downstream-sellers, it's a slipper slope from there on.
 
M

Mick-Mac

macrumors 6502a
Oct 24, 2011
504
1,150
MacRumors said:
Back in July, Apple CEO Tim Cook told employees that he would like to improve Apple Store iPhone sales with new promotional tactics.
Click to expand...

Why not use the tactic of price matching other retailers for iPhones during sales events? I'm after buying four iPhones for the family this Christmas. I'd be happy to buy them at the Apple Store, but there's hundreds of dollars to be saved by specifically not buying them at the Apple Store - especially during the Thanksgiving sales where they tell me all iPhones will be selling at full price.
 
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