Apple Prepping to Launch New iPhone Incentive Programs, Has an 'Army' of Products in the Works

[576316]

I don't think that 80% figure is necessarily a negative or unexpected thing. Most people buy phones tied to contracts which come directly from the network. You only really buy an iPhone directly from the Apple Store if you're bringing along your own network or going pay-as-you-go. In terms of incentives, they'd need to make it worth while buying an iPhone directly from Apple. Not just a voucher if you're a student, something for everyone which makes it unique from buying straight on contract.

Also, for store managers to quote "an army of products" is it likely that some Apple executive has bluntly said, "We've got a boat load of new products, so that's something."

 

[malexandria]

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.

I would almost argue that Apple stores have too many salespeople, you walk in and "attacked" by 5 or 6 people....

 

[BizRunner]

One of the main reasons that 80% of iPhones are sold out of Apple stores is that there aren't enough Apple Stores. I live in Iowa City, Iowa, a town with a Big Ten University, and the nearest Apple Store is 100 miles away in Des Moines (the only one in Iowa).

 

[Freida]

As a current Apple employee, 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.

As an ex employee I'm aware that this comment can get you fired as I am sure you know. Maybe its time to do the business conduct training again ))))

 

[smithrh]

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.

Insightful post.

Indeed, I know of quite a few people who still tend to think that getting the iPhone from their carrier is a requirement, or at least the "right thing to do."

I wouldn't mind Apple throwing a bit of their weight around and to keep an exclusive for some amount of time - not sure what amount of time would be right, but it would put on notice some of the carriers that have been profiting from the iPhone yet sticking Apple in the eye with spiffs for other phones.

Now, this would create even more strain on the stores on launch day, so that would be problematic. But if it's over a week or so, that could minimize those disruptions and allow for the better time for browsing as you mention.

I do worry a bit that Apple might consider not servicing iPhones unless they were bought in the store.

 

[576316]

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.

No, that would mean a warranty change. Your one year standard warranty includes your rights to free help from the Genius Bar. Apple would have to say that the one year warranty only applied to iPhones bought directly from Apple which would entirely alienate most iPhone customers and be an awful move from Apple. I think the whole Genius Bar thing is meant to be what sets Apple apart from other companies; help with your devices, whatever they may be.

 

[bpcookson]

Many people don't know that you can buy an iPhone at an Apple store. They think you have to go to your carrier to get a new phone. I am consistently surprised by this from random people at work.

I have purchased all of my Apple products from the Apple store and always recommend the same to others, especially those who are not tech savvy. Carriers are just blowhard salesmen; they don't know jack about the devices they sell.

 

[thisisdallas]

Tim definitely isn't wrong about the iPhone being the gateway. I hated Apple with a passion and always bashed the iPhone, iPad and Mac at every appropriate occasion. After my Galaxy S sucked hardcore, I decided to just get the iPhone 4S and see why everyone still buys Apple even though the feature set is technically lesser than my old Galaxy S.

The quality and perfection I found had inspired me to go ahead and hop on board with a mac after my old Dell laptop (un)fortunately died on Christmas day.

iPad came after the Mac once I found myself needing the bigger screen for watching videos and playing games.

I really don't see myself buying any non-apple electronic devices for quite some time simply because I still haven't found quality in any other company.

Microsofts recent offerings aren't bad(aside from Windows 8 with a mouse and keyboard), but they haven't put out anything that makes me miss Windows.

Same for Android. Even their best performing phones are still finicky enough to where my iOS 7 beta iPhone 5 still works on par with their final products.

 

[donutbagel]

I would almost argue that Apple stores have too many salespeople, you walk in and "attacked" by 5 or 6 people....

Too many salespeople, not enough support. No, I do not need help reading the specs on a MacBook Pro. I want my Applecare-covered iMac's hard drive fixed.

 

[Doctor Q]

This is true but what other retails stores can sell Apple products? Walmart and Target?

With the right support and incentives, Apple could probably convince more mid-sized retailers to stock and sell Macs or at least iPads and iPad minis. iWatches might be good additions for stores that already sell sports watches and other small consumer devices. Ideally these retailers would train their employees to understand these products, and that requires more of an investment than simply stocking the products. Then again, Walmart and Target employees aren't known for their Apple expertise.

 

[Boomchukalaka]

'Gateway' for sure...now after 3 iPhones, 2 iPod Touches, 2 MacBook Airs, 3 Apple TVs, 3, iPads, 1 iMac, 2 TimeCapsules, 1 Airport Extreme and 2 Airport Expresses...I need Apple re-hab!!

*most of these items are for my family, not all used personally by me.

 

[thisisdallas]

One of the main reasons that 80% of iPhones are sold out of Apple stores is that there aren't enough Apple Stores. I live in Iowa City, Iowa, a town with a Big Ten University, and the nearest Apple Store is 100 miles away in Des Moines (the only one in Iowa).

Exactly it! I'd love to go buy my new laptops and phones at the Apple Store, but I usually opt out of driving the hour to Indianapolis and instead just either buy at the AT&T store, Best Buy, or online.

 

[fivedots]

I would almost argue that Apple stores have too many salespeople, you walk in and "attacked" by 5 or 6 people....

The only challenge I've had is the general lack of adapted customer service. I want to be spoken to at my level and not at the lowest common denominator.

I would hope that employees are trained to adjust their style based on the knowledge of the customer they are speaking to.

 

[Dirtfarmer]

or they could try inventing amazing new product categories and then dominating them. You know; like they used to do.

That's an alternative strategy for separating people from their money -- albeit perhaps not a strategy that would immediately occur to an accountant.

Keep milkin' this cow, Tim. We don't want all of Steve's hard work to go to waste.

 

[theipodgod16]

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've seen blog posts from former employees chronicling the horrors that they or their coworkers did. I can't add to those. What I can attest to is the very false fronts that many employees wear. The reason you find the stores to be welcoming is because they intentionally put the people with the biggest smiles or fewest brain cells at the front, ready to answer basic questions. But were you to talk to a Manager or Lead Genius for five minutes, that veneer would rub off pretty quick. Most people, and I mean 90% of those I worked with were either very pretentious or tactless. The kind of people who will argue the smallest detail about an operating system or GUI not to show you the correct answer, but to be right.

The other take away I have is how frightening the internal language used was; this has been documented elsewhere. But in short: there are no problems, only opportunities. We can always "have that conversation". "Fearless feedback" isn't optional. And remember that no matter what you're talking about to either an employee or a customer, it's always better to beat around the bush with lomingers and metaphors than to say what you think. Your job depends on it.

 

[bpcookson]

The only challenge I've had is the general lack of adapted customer service. I want to be spoken to at my level and not at the lowest common denominator.

I would hope that employees are trained to adjust their style based on the knowledge of the customer they are speaking to.

I've had to deal with this a couple times, and it can be frustrating. There are two employee types in the Apple store: the shiny plastic people and the ones that 'get it'. You know right away, as soon as they start talking to you. I think it has more to do with how they hire than any training they might perform.

The upside is that most sales floors only have the shiny plastic variant.

 

[bit density]

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.

They make more money by far either net or gross dollars, per square foot, than any other store of any other kind. Here in Seattle, the stores are crowded on quiet days, and have lines out them on crazy days.

As a former Apple employee, you seem disgruntled, and assuredly there are some. But you were paid more than average, had considerable benefits, and there was a moment, where they attempted to lower the cost of employees, but they stopped that when publicity started to get bad.

Seattle, has had no problem filling seats. And I have had numerous friends work there. Many have left when ambition overtook them. This is not a bad thing IMHO.

 

[Cole Slaw]

I would almost argue that Apple stores have too many salespeople, you walk in and "attacked" by 5 or 6 people....

I agree.
There is a fine line between being helpful and attendant and mugging the customer.

 

[2bikes]

With the right support and incentives, Apple could probably convince more mid-sized retailers to stock and sell Macs or at least iPads and iPad minis. iWatches might be good additions for stores that already sell sports watches and other small consumer devices. Ideally these retailers would train their employees to understand these products, and that requires more of an investment than simply stocking the products. Then again, Walmart and Target employees aren't known for their Apple expertise.

What? iWatch was released?

I think the training about products IS the key for using other retailers. Another point to this is, the employee happiness and quality. If the retail store employees are not happy, up to par with the technology, etc. that increases chances of having bad representation, which will kill the sales. Comes down to controlling whole experience and it is less likely if Apple starts dealing with more and more retailers.

 

[BruceEBonus]

Forget Innovation. Stagnation Is The Future!

"Tomorrow, We Gotta Get Organised!" - T. Cook 2013

2014 Jobs Went Then ... Jobs Went - Due To The Above


Moral: Nostalgia For Apple's Glory Days' Products Isnt What It Used To Be

Indeed, Android Waits For No Man.

 

[thisisdallas]

or they could try inventing amazing new product categories and then dominating them. You know; like they used to do.

That's an alternative strategy for separating people from their money -- albeit perhaps not a strategy that would immediately occur to an accountant.

Keep milkin' this cow, Tim. We don't want all of Steve's hard work to go to waste.

Why can't they try inventing amazing new product categories and then dominating them AND work on bringing more iPhone sales to their Apple Stores?

Seriously, do you think Tim Cook single handedly invents the products, runs the retail, among everything else? There are departments and engineers and other leaders for a reason.

 

[GQB]

I would almost argue that Apple stores have too many salespeople, you walk in and "attacked" by 5 or 6 people....

One person's 'attacked' is everyone else's 'being asked if you can be helped'.
I've never been pestered after the initial greeter, and when I have needed help, I'm glad to have someone get it for me quickly.
Of course those complaining about being 'attacked' are the same ones who gripe when there isn't someone there immediately when they do need something.

I,e, congenital gripers.

 

[euvnairb]

iPod video was my "gateway" so when the iPhone 3G was released, it was the next logical step up. Then I got an iphone 4, then an ipad3, then an iphone 5. Waiting for the release of the haswell 15" rmbp's to make my first mac buy. Dam, I'm an isheep

The apple store is a 25min drive from me, the nearest ATT and Bestbuy are 5min away. If prices are the same, I'm going to the place closest to me. If I have any questions, I'll research online beforehand. I will go out of my way to get service from the apple store though.

 

[FreeState]

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.

I think they need to work on consistency from store to store to fix this issue. Each stores management makes or breaks the experience in my opinion. Take Fashion Valley in San Diego - one of the busiest Apple stores - but the managers style has turned so many people off they tend to go else where (speaking from both a consumer base and a corporate account base, I use both and have been treated horribly as both at Fashion Valley but not at any other store in the region.)

 

[DarkLighter1985]

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.

This isn't true. Take a look at Apple's website and the websites of other Apple authorized retailers (AT&T, WalMart, Best Buy, Verizon, Sprint, T-Mobile, etc). The prices you see in the Apple Store are identical to the prices that Apple has on its website. The prices are also identical to the prices you'd get if you were going to go and get a MacBook Pro from say Best Buy. The only time they're different is when these 3rd party retailers are offering special promotions, which actually doesn't happen that often.

Sometimes it's even more expensive at the third parties. As an example, when I was eligible for upgrade in October 2011 I wanted to get my first iPhone. I've been AT&T subscriber for years. I did a little research. I wanted to get the 32gb iPhone 4S. I started the transactions on both AT&T's and Apple's respective websites. The phone was going to cost me $299.99 if I ordered it from AT&T and they were going to charge me shipping. If I ordered it through Apple's website, the iPhone was only going to cost me $299.00 and no shipping. So I saved a few bucks by getting it directly from Apple instead.