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Apple Watch to Be Sold at All U.S. Target Stores by October 25

KPOM said:
Apple lowered the price of the original iPhone by $200 74 days after its launch. Making the product available across a wider distribution network and expanding the product line aren't signs of failure. They are signs of success.
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Your comment makes too much sense.

It's interesting how some users assume expanding distribution of a product equates with failure. When a product doesn't sell then the first thing the manufacturer does is lower prices to increase demand. They're selling the Watch at the same target stores that sell the iPhone, iPad, and iPod, yet those products are not failures. Logic is just lost on some people.
 
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ActionableMango said:
That's interesting conjecture. When Best Buy announced the Apple Watch would be available in all stores, people said the same thing (it was a sign that Apple Watches weren't selling).

So if I am to understand this straight, the more and more retail stores that pick up the Apple Watch, the greater of a failure it is? When iPhones started selling in Best Buy and Target, was that a sign of sales failure? iPads? MacBooks? Ever increasing retail presence equals doom?

Best Buy's announcement to bring Apple Watch to all stores was after a trial period where they first sold it in only a few select stores. So Best Buy saw the Apple Watch tank, then said, yep, let's put this in all of our stores?

This seems completely backward to me. Retailers don't want to use up shelf space for something that doesn't sell. Brick and mortar shelf space is expensive.

So, yeah, I'm not buying this theory. Maybe the Apple Watch is doing well, maybe not, but increased retail presence is certainly not a sign of failure. If that increased retail presence was seeing Apple Watches tossed into bargain bins at every Walgreens and Rite Aid, yes, I'd see that as a failure. But Best Buy and Target are both current Apple partners, so this just seems like a natural extension of the existing partnership.
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Is not a theory, is a fact. I mean, someone from Apple, a friend told me and it was related with what is going on.

When you putting together a product and you expected to be a big hit and it was not, what do you do? cut production? no, that will be a shame. If you have a surplus as Apple have, you just go to plan B asap.... distribute that surplus into retailers. Just imagine how many Apple Watch Best Buy will need?

There are 1417 Best Buy stores (against only 266 Apple Stores), each one would need at least 400 Apple Watch in stuck. That would be 566,800 Apple Watch less to worry about and with a very good markup for Best Buy.

How long took Apple to start giving away iPhones and iPads to other resellers? about two years at least. If something is good for you why giving it away?

I mean, that is just basic marketing but very very basic, first day of class you would figure this sort of things out. The surplus of Apple Watch is not being sold to final costumer, is being disolved in distribution, THEN they can reduce production.
 
CEmajr said:
It's interesting how some users assume expanding distribution of a product equates with failure. When a product doesn't sell then the first thing the manufacturer does is lower prices to increase demand. They're selling the Watch at the same target stores that sell the iPhone, iPad, and iPod, yet those products are not failures. Logic is just lost on some people.
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Expanding distribution on the iPod when it happened was a sign of maturity of the product (ie, it could be sold without anybody doing much explaining how it worked). Expanding distribution of the Apple Watch is a sign of not being production-limited, whether that is due to manufacturing prowess or soft demand is impossible to tell without additional information. But it is also a sign that other retailers are willing to sell it (whether that is because they expect demand or because Apple strong-arming them agains is impossible to tell).
 
brinary001 said:
Okay is this really necessary? There's just way too many combinations to be put in a department store. Not to mention it just doesn't seem like it fits; I don't know why. No it's not because Target isn't nice. The upper-middle class has been claiming those stores as their turf for years. I just can't picture a shopping list that goes:
1. Milk
2. Eggs
3. Laundry detergent
4. Apple Watch

Like "Oh I almost forgot! I need to grab my thousand dollar Apple Watch. Man, you come in for the necessities and then they always get ya with something else."
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Your shopping list is for a grocery store, not a department store. Target already sells Apple products, and Bose, and Sony, etc. Speaking of grocery stores, some do sell Apple products like iPods and accessories.

Now that they have inventory to get the watches in more places, I don't see the issue. Maybe Apple will also do what they've done with the iPhone and iPad - make an improved model and continue selling the old one at $100 off.
 
Popeye206 said:
Cool... the more the merrier. Still waiting for v2 before I take the plunge.
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I'm waiting for a version that can work without being tethered to an Iph (I use Ipod Touches for iOS handhelds) and for the price to get reduced to $150 or less. If it takes another 5 years, I can wait. It'd be nice to have, but nothing essential for my needs. A regular watch can still do date, time, and stopwatch, so I'm set there for the time being.

brinary001 said:
Okay is this really necessary? There's just way too many combinations to be put in a department store. Not to mention it just doesn't seem like it fits; I don't know why. No it's not because Target isn't nice. The upper-middle class has been claiming those stores as their turf for years. I just can't picture a shopping list that goes:
1. Milk
2. Eggs
3. Laundry detergent
4. Apple Watch

Like "Oh I almost forgot! I need to grab my thousand dollar Apple Watch. Man, you come in for the necessities and then they always get ya with something else."
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Heh... Costco does this too. A friend went onto their website to queue some items into the virtual shopping cart to pick up next time she goes there.
$20 spindle of blank DVDs
$5 chips
etc.

Upon checkout, it asked her if she forgot to add some $100,000 piece of jewelry to her cart. Smacks head, RIGHT! Add that... and now our total is $100,050! :p
 
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Mr. Buzzcut said:
Your shopping list is for a grocery store, not a department store. Target already sells Apple products, and Bose, and Sony, etc. Speaking of grocery stores, some do sell Apple products like iPods and accessories.

Now that they have inventory to get the watches in more places, I don't see the issue. Maybe Apple will also do what they've done with the iPhone and iPad - make an improved model and continue selling the old one at $100 off.
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Actually, Target is both... And Apple barely even cares about iPods anymore. Grocery stores aren't in the consumer electronics business, so they think that tech from 10 years is still relevant.
 
keatth said:
I don't think it applies to electronics
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It looks like it is...
When you use your Target Debit Card™, Target Credit Card™ or Target™ MasterCard® (each, a "REDcard") at Target stores in the U.S. or Target.com, you will receive 5% off your purchases. If you use a REDcard in the same purchase transaction with another form of payment, the 5% discount will apply only to the purchase amount tendered to your REDcard. 5% discount applies to eligible purchases minus any other discounts and the value of any promotional Target gift cards received in the transaction. Target reserves the right to discontinue or alter the terms of this program at any time. 5% discount does not apply to the following:

  • Prescriptions, Target Clinic™ services and Target Optical™ eye exams
  • Target gift cards and prepaid cards
  • Previous purchases
  • Target credit account payments, Target Debit Card cash back and cash advances on the Target MasterCard
  • Gift wrap and shipping and handling charges on Target.com purchases
  • Wireless protection program purchases and deposits required by a mobile carrier
  • Where otherwise prohibited by law
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http://www.target.com/redcard/main#?lnk=fnav_t_spc_1_29&intc=28073|nullfnav_t_spc_1_29
 
brinary001 said:
Actually, Target is both... And Apple barely even cares about iPods anymore. Grocery stores aren't in the consumer electronics business, so they think that tech from 10 years is still relevant.
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SOME Target stores have groceries. That's not why most people shot at Target. It's a department store like Walmart but a bit more trendy. My point was simply that it's not strictly a grocery store and Apple products are already on the shelves, including iPads which are perfectly current and relevant. Adding a watch to the mix isn't strange at all.
 
kdarling said:
Well, that was because demand had dropped off. At the time, it cost too much for most customers to get one without any subsidization.

The anger from early adopters was enormous. Apple learned from the experience and now waits to lower prices until a model is last year's.
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Apple could have tweaked the pricing when they updated the band selection without much uproar.
 
KPOM said:
Apple could have tweaked the pricing when they updated the band selection without much uproar.
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I don't think they could have. The watch is being watched too closely to get away with even a slight reduction of fees. The original iPhone is evidence of that. Brands have to be very careful with pricing. Stores like Abercrombie & Fitch which almost went out of business during the last recession, didn't lower their prices for fear of lowering their premium brand perception, from which they might not recover. Likewise for Apple ... it's bad enough they are expanding into Target so soon after launching it in nothing but exclusive boutiques, when the watch is otherwise perfectly accessible in all markets, but to drop the price as well would be perceived as admitting some kind of defeat in the marketplace.

I personally think the watch is well priced, and next year when the 2nd gen model comes out, I fully expect Apple to drop the first gen Sport model (if not the stainless) by $100, and make it more affordable that way.
 
Mac 128 said:
it's bad enough they are expanding into Target so soon after launching it in nothing but exclusive boutiques, when the watch is otherwise perfectly accessible in all markets, but to drop the price as well would be perceived as admitting some kind of defeat in the marketplace.
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Exclusive boutiques like the Apple Store?

I think it was always Apple's intent to move the Watch into its main distribution system. The Sport is positioned as an everyday product, and not a high fashion device. It's interesting that they haven't come to terms with a regular department store yet (Macy's, JC Penney, Nordstrom, etc.), and while that could be perceived as weakness, selling it at Target and Best Buy shouldn't be.

Since Apple replaced the Classic Band altogether, they could have released a "mid-range" and "high-range" version at $599 and $649 without much notice. They could have priced bands in between the Classic and Modern Buckle, or released another steel band option.

They have somewhat less flexibility with the Sport, but that's the model that's geared to the Target and Best Buy crowd.
 
KPOM said:
Exclusive boutiques like the Apple Store?
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If you recall, the Apple Store did not actually have any Watches for sale at the Apple Store until June. When the watch launched on April 24th, the only way you could buy them was online or at exclusive boutiques, of which there was only one in the US -- Maxfield. Overseas, there was Colette in Paris, The Corner in Berlin, Dover Street Market in Tokyo and London, 10 Corso Como in Milan, as well as pop-ups in luxury department stores like Selfridges in London, Galaries Lafayette in Paris, and Isetan in Tokyo, Lane Crawford personal shopping Platinum Suites in Hong Kong, Shanghai, Beijing and Chengdu. Since then they have expanded into London Jewelers in New York, Hermes, and others worldwide.

KPOM said:
I think it was always Apple's intent to move the Watch into its main distribution system. The Sport is positioned as an everyday product, and not a high fashion device. It's interesting that they haven't come to terms with a regular department store yet (Macy's, JC Penney, Nordstrom, etc.), and while that could be perceived as weakness, selling it at Target and Best Buy shouldn't be.

Since Apple replaced the Classic Band altogether, they could have released a "mid-range" and "high-range" version at $599 and $649 without much notice. They could have priced bands in between the Classic and Modern Buckle, or released another steel band option.

They have somewhat less flexibility with the Sport, but that's the model that's geared to the Target and Best Buy crowd.
Click to expand...

Moving the watch into it's standard distribution system is a bit surprising considering how it was originally launched. You realize most of those exclusive boutiques also sell the Sport Watch. Frankly I would think that selling it in Nordstrom would be far better positioning than Target with the image Apple set out to achieve. At the end of the day, I don't have a problem with Apple doing this. I just don't get the timing. Why not wait to introduce it to Target when the 2nd Gen model comes out next Spring and then reduce the original model by $100, and sell the Sport and stainless in Target, and even Wal-Mart?

Sorry, I just don't understand what they're doing sending these mixed messages. Once we start getting some better numbers out of the "Other" category in Apple's next quarterly report, we may have a better understanding of the motivation behind this move.
 
Mac 128 said:
Moving the watch into it's standard distribution system is a bit surprising considering how it was originally launched. You realize most of those exclusive boutiques also sell the Sport Watch. Frankly I would think that selling it in Nordstrom would be far better positioning than Target with the image Apple set out to achieve. At the end of the day, I don't have a problem with Apple doing this. I just don't get the timing. Why not wait to introduce it to Target when the 2nd Gen model comes out next Spring and then reduce the original model by $100, and sell the Sport and stainless in Target, and even Wal-Mart?

Sorry, I just don't understand what they're doing sending these mixed messages. Once we start getting some better numbers out of the "Other" category in Apple's next quarterly report, we may have a better understanding of the motivation behind this move.
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Apple sees the Watch as a holiday gift. It's better to get it into its standard distribution system in time for the holiday shopping season next month. The original launch seems more like a "beta." They didn't have enough supply for their own stores, so they did online orders and had physical stock at a handful of showcase stores. Now they can produce as many as they need, have a better idea than in April as to the product mix, and can enter the holiday season with a larger "re-launch."

It's entirely possible Apple will not sell the original Watch when it launches the next model. It's also possible that the replacement cycle will be slower.
 
KPOM said:
Apple sees the Watch as a holiday gift. It's better to get it into its standard distribution system in time for the holiday shopping season next month. The original launch seems more like a "beta." They didn't have enough supply for their own stores, so they did online orders and had physical stock at a handful of showcase stores. Now they can produce as many as they need, have a better idea than in April as to the product mix, and can enter the holiday season with a larger "re-launch."

It's entirely possible Apple will not sell the original Watch when it launches the next model. It's also possible that the replacement cycle will be slower.
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So many possibilities ... but for me it still boils down to Tim Cook selling the "most personal product" Apple has ever created, at the least personal shopping experience for the customer.

Best Buy made sense of Apple, because it's in places the Apple Stores are not. And it's staffed with employees who are paid to at least pretend to assist the customer, not to mention dedicated employees who are trained to work behind the watch counter, since the most personal product Apple has ever sold, needs to be tried on, and sized by the customer. At Target, you're lucky if you can even find somebody with keys to the watch counter.

And Target is going to duplicate Best Buy in most markets, markets which will likely also have Sprint, ATT, T-Mobile and Verizon stores, many of which will also carry the watches with the "boutique" experience. So why risk the experience with Target?

I get what you're saying ... I just don't understand why they're taking this particular approach, when they clearly don't have to, especially considering the customer experience they're likely to receive at Target.
 
OldSchoolMacGuy said:
Interesting. Passed that along to friends at corporate as it's not suppose to work that way.
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Haha. Ok. It's only been 10% off of everything the 10 years I've worked there. Then 5% off stacked onto the 10 since they added that feature onto the red card. But whatever. You know what's right because you have friends who work there.
 
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