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

[Ericus Macabeus]

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

I used to work AT&T as an authorized dealer. I completely understand. We were pushed to offer other phones even when someone walked in and said they only wanted an iPhone. Since we were commission based we would always sell what made us more money. iPhone was always next to nothing for commission. Apple people don't make commission and you can tell the difference. If you can, buy from the source. Their return policy good also.

 

[Tech198]

"...boost other Apple Products" meaning the Apple Store...

Thus, more people will buy iPhone's if they see other Apple products too ?

Is that Apple's thinking ?

Well, duh..... of course, its an APPLE STORE...


What else would you expect, a Nokia Luna ?

Apple seems to forget people go and buy from retail non-Apple Stores because there is a wide variety of selection the customer can choose from....

Its like walking into a store full of candy. If there was only one sort, then that's all you have, but you made a choice to go to that store with the intention to buy.

What Apple's goal is here is "We want customers for ourselves, and no one else"

Whats so wrong about choice ??

oh yeah... Apple doesn't like it.

If you have a promo, or some sort of deal, then that's different, you KNOW what you are wanting already.

 

[Dominicanyor]

Apple should have better deals.

 

[Nevaborn]

Theres 3 standout reasons for this.

1) Like Tim says to get customers amongst other Apple products, that makes sense.

2) more money as there is no cut to the 3rd party and it lessens distribution costs too.

3) there are ulterior motives at 3rd party stores that play a factor in losing business. Retailers try to sell expensive needless peripherals and insurance all the time... If they have a promotion with a company on a product and see a higher cut of the sale profits then they will promote it. Ive seen it with tv's and it's a well known fact 3rd party companies actually prefer selling other brands over Apple as they have a very small margin on the Apple products

 

[marktebbutt1]

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.

Totally agreed!

 

[fermat-au]

I am in Australia so am unfamiliar with the US phone retail process:
Do people "buy" a new iPhone for the $199 subsidised price at the Apple store, them if they are out of contract then activate the iPhone with AT&T*?

What happen if you buy a subsidised phone when you are still in the 24 month contract period?

*or some other carrier

 

[vmistery]

If you want to buy an iPhone and not have someone trying to sell you a plan that will make them more commission go to an Apple store or buy it online. That was my experience when I bought my 3GS from O2 and the guy was really trying to persuade me I needed a far more expensive plan! Plus the in-store experience in an Apple store is far superior to that of a carrier shop anyway, more space, more knowledge and you get to play with all the other shiny toys while you wait.

 

[WaxedJacket]

Don't screw me over on a trade in and I'll always get my phone from Apple.

Also throwing in an iTunes gift card wouldn't hurt

 

[unplugme71]

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.

1) the individual Apple store that sold it gets the profit
2) the customer walks into an Apple store. Apple stores carry other Apple products.
3) Apple reps help setup your new phone and transfer data from existing one. They also go over the new features and such if you ask.

#2 is the key factor of why Apple wants to sell its own phone there

lack of #2 is why Apple will soon become another Motorola


5 years ago if you asked someone what Apple meant to you, they'd say high prices, ipod, and mac

now people say high prices and iphone.