Tim Cook's Plan to Sell More iPhones in Apple Stores Could Be Tough Task

[Illusion986]

Some of you are really unreasonable. Complaining about having to wait for 45 minutes to check out. Heck some complained about waiting for 15 minutes. I feel bad for servers who wait on you guys. Im sorry but you need to learn to be patient. Going to the carriers takes a long time as well. People are there to buy things, not just you. The world does not revolve around you.

I personally don't have time to waste by waiting around for 45 min to buy a phone, computer or accessory. So there for i usually don't buy things at apple store unless I'm not working that day but that is a rare occasion that I'm not working. I run a business and i treat my customers like world does revolve around them and when i want a service from another business i expect same treatment, if i don't get it i don't bitch or complain i simply don't use their services again. I love apple products but i really dislike their retail stores mainly because of how long it takes to buy anything, yes they have ability to check out with your iPhone but credit card linked to iTunes is my personal card and if i want to use business card i must wait for associate to check me out. But no biggie there are plenty of places where i can walk in and out with what i want. If apple stores improve their shopping time and i don't need to hunt for sales associate every time ill be returning to them as their associates are nice and friendly. If it sounds like I'm complaining, well I'm not I'm simply explaining my reasoning.

 

[jonnysods]

I would always go to the carrier. They just know more.

 

[Chrjy]

This isn't about market share its about increasing the percentage of sales that happen in Apple stores.

True...didn't think of it in those terms.

 

[samcraig]

I personally don't have time to waste by waiting around for 45 min to buy a phone, computer or accessory. So there for i usually don't buy things at apple store unless I'm not working that day but that is a rare occasion that I'm not working. I run a business and i treat my customers like world does revolve around them and when i want a service from another business i expect same treatment, if i don't get it i don't bitch or complain i simply don't use their services again. I love apple products but i really dislike their retail stores mainly because of how long it takes to buy anything, yes they have ability to check out with your iPhone but credit card linked to iTunes is my personal card and if i want to use business card i must wait for associate to check me out. But no biggie there are plenty of places where i can walk in and out with what i want. If apple stores improve their shopping time and i don't need to hunt for sales associate every time ill be returning to them as their associates are nice and friendly. If it sounds like I'm complaining, well I'm not I'm simply explaining my reasoning.

Well this is exactly one of the reason I have to laugh when people get all excited about how long lines are to get their iPhone as if it's a "selling" point. The same people mock other manufacturers for not having lines. Oh I understand they think having a line = popularity + great sales. Conversely - not having lines doesn't mean there aren't great sales - just great inventory. Personally - whatever I'm buying - I prefer not to have to wait in line or be stuck on an inactive website for a long time. I prefer to just go in (or click) and be done with it.

 

[appleisking]

Please respect local differences, you claim to live in a communist state (Soviet Union) queueing there is the norm, and that does not bother me in the slightest. Queue for as long as you wish. I live in a democratic country where queuing is not the norm, and even my butler would not want to be seen dead waiting outside a shop, he would rather enjoy a refreshing Pimm's with all the trimmings and a cucumber sandwich.

lol but the soviet union doesn't exist nor is it communist.

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Well this is exactly one of the reason I have to laugh when people get all excited about how long lines are to get their iPhone as if it's a "selling" point. The same people mock other manufacturers for not having lines. Oh I understand they think having a line = popularity + great sales. Conversely - not having lines doesn't mean there aren't great sales - just great inventory. Personally - whatever I'm buying - I prefer not to have to wait in line or be stuck on an inactive website for a long time. I prefer to just go in (or click) and be done with it.

Well I've always said you should pick ur phones based on wht u want/need not popularity but people claiming the iphone is getting less popular or not selling well etc. need to be taken down a peg with facts like that.

 

[samcraig]

lol but the soviet union doesn't exist nor is it communist.

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Well I've always said you should pick ur phones based on wht u want/need not popularity but people claiming the iphone is getting less popular or not selling well etc. need to be taken down a peg with facts like that.

As are people that insist that the only reason someone chooses an Android phone is because they don't know better, can't afford an iPhone, or were talked into it by salespeople.

There's anecdotal evidence, there's wishful thinking, there's sweeping generalizations, etc - and then there's the truth and fact.

 

[Chupa Chupa]

I thought Apple did it for the love of the product not the amount of sales!

Don't get me wrong I understand Apple is a business and need to earn money as with every other but they shouldn't forget their roots...this in itself has made Apple what it is today.

Apple's "roots" is Steve Jobs convincing Woz that they should SELL the Apple I Kit for $ rather than share the schematics with their fellow computer club hobbyists. Jobs was always about the sale, don't fool yourself. He was about making great products, yes, but at insane profit margins.

 

[bretm]

In my experience Apple Store employees are more informed about Apple products than the guys at Verizon or Best Buy, but I have to drive an hour out of my way to get to the nearest Apple Store. Best Buy and Verizon are ten minutes away. Idk, that could be a contributing factor Apple...

Ya think? Even when there's one closer, you still have to do the mall thing, vs. pulling right up to the front door of an AT&T or Verizon standalone or strip mall type store.

The chart makes perfect sense. On launch, Apple carries WAY more devices than anyone else. Often it's the only place that has them in any quantity. So obviously their sales start off strong. Then, as supply meets demand, people go to walmart and best buy and att and verizon or wherever is closer, so their sales numbers begin to go up as Apple's go down. It's not any surprise.

 

[Flyers12]

So some people are saying what is the point of buying at the Apple Store versus at other places and here are my reasons. If there is anything defective with the product when you initially open it, within that return period you can get a new phone rather easily. While carriers I have experienced with a defective product even right after I leave they force me to then file a report that requires verizon to then fedex me a phone to my house rather than give me a new phone right in store so I do enjoy that convenience.

Furthermore, for people who are waiting to long for certain products if it is for accessories just use the app on your phone and walk out. It is fast and Apple works on the "honor" system so you do not have to ask anyone anything about it after. In addition, if you want an unlock phone if you let the person at the front of the store who usually controls traffic that all you want is an unlock phone and to leave. You will often times be given priority just because it is such a fast sale.

In the end it's always preference in which store you want to go to, but just being able to return stuff I prefer apple's customer service and leniency.

 

[phatlipboardz]

It's an admirable goal but there is nothing they can do so long as the iPhone is an expensive product with an actual price partially obscured by a crack-addiction subsidy model, dependent on carrier partners whose nature is to perplex customers with complex rate plans and fees rather than accept being a utility company. If Apple wants to truly change the market it has to sell the iPhone like EVERY SINGLE OTHER product it makes where the retail price is the same no matter where you buy it. And that requires selling the mythical 'cheap' iPhone unlocked and unsubsidized for starts.

I couldn't agree more. I've never understood the whole phone subsidy concept. You're right. These devices need to be sold retail just like every other "computer."

The whole contract/subsidy through the carriers is just a step up (or down depending on how you look at it) like Rent-a-Center.

 

[rabidz7]

If people had half a brain cell, they would pay for their phones! If someone gets a subsidized phone and keeps upgrading to more subsidized garbage they save 400$, and waste 1000s!

If all people had any sort of planning for the future, we would all buy unsubsidized, unlocked phones, because in the end we end up saving money, and gaining features! The ability to think for the future is what separates us from monkeys, baboons, and other wild animals, some, or should I say most, people are showing that they cannot think for the future by buying subsidized phones and wasting 1000s of dollars, while losing features such as the ability to switch carriers freely.

 

[JNanny]

Tim, the main reason that many folks including myself continue to buy IOS devices from everywhere else besides Apple stores is that THEY offer deals/discounts that Apples do not. Until you give people the feeling that it is worth driving up to their nearest Apple store, I believe this downward trend will continue.

 

[YeahBuddy]

I think the concern is that a new customer goes in to buy their very first iPhone and some fast talking salesperson sends them out with something else. I've certainly seen them try.

Exactly. Which can either lead to a bad buying experience, or a customer with a device that isn't right for them. Both are reasons why Apple wants more people buying iPhones in their stores.

 

[JAT]

If people had half a brain cell, they would pay for their phones! If someone gets a subsidized phone and keeps upgrading to more subsidized garbage they save 400$, and waste 1000s!

If all people had any sort of planning for the future, we would all buy unsubsidized, unlocked phones, because in the end we end up saving money, and gaining features! The ability to think for the future is what separates us from monkeys, baboons, and other wild animals, some, or should I say most, people are showing that they cannot think for the future by buying subsidized phones and wasting 1000s of dollars, while losing features such as the ability to switch carriers freely.

Wasting thousands on what? It's been about 10 minutes in this country since there has even been an option about what kind of plan we can buy. And it's not much of an option, so far.

 

[valkraider]

What I don't get is how anyone who has an Apple store anywhere near would even think of getting one anywhere else.
My bet is that a huge % of people who buy in the telcom outlets don't know about Apple stores, and therein lie the opportunities.

Our family has bought 8 iPhones. Not one in an Apple store.

The single iPhone I got from an Apple store was a warranty replacement.

Why?

Because an iPhone sold by AT&T or Verizon is still an iPhone. Still has iOS. Still works just like the ones from Apple.

But an iPhone from Apple has to be activated on a phone network. So many people I know have horror stories about this, including myself with the one warranty replacement iPhone activation Apple has done for me.

See, one small error by the Apple store can mean months of erroneous bills, hundreds of dollars in fees, many many hours on the phone with customer support, and possibly loss of plans all together.

I buy one Apple phone. But I need signal from a carrier and pay a carrier bill every month for as long as I have the phone.

I trust the carrier to get the carrier activation right, and if not then I can blame them and they'll fix it.

 

[iReinventnv]

There is nothing apple can't do

 

[sulpfiction]

Have you ever considered why they push them to Android phones? What makes you think the sales rep are obligated to push a stale design? Because it's Apple? Not everyone froths at the mouth over the iPhone like so many people here.

Do u REALLY think carrier sales reps push to android because they think the iPhone design is "stale"?? How old are u? U have to be 14 or under to make a statement like that.
The reason they push android is because of higher margins. No real money to be made selling iPhones.
And let's be honest, the iPhone has the best build quality of any phone out there. Followed by HTC 1.

 

[phatlipboardz]

Wasting thousands on what? It's been about 10 minutes in this country since there has even been an option about what kind of plan we can buy. And it's not much of an option, so far.

Well, I don't want to misquote here, but I believe it has something to do with the fact that "we" have allowed this to happen. If phones were just retail from the beginning and the carriers just supplied the network then we might actually find ourselves with more options to choose from.

With subsidies "we" are actually giving them most of the control here and have for years.

I know other business models are falling in line with this...take Comcast as an example with their two year contracts to lock in pricing. I mean how ridiculous would it be if Comcast subsidized your computer and then forced you into a tiered and/or capped data plan for the next two years because you were able to walk out of the store with an upfront cost of $399 for a MBP.

Just doesn't make sense.

 

[Amazing Iceman]

Have you ever considered why they push them to Android phones? What makes you think the sales rep are obligated to push a stale design? Because it's Apple? Not everyone froths at the mouth over the iPhone like so many people here.

Higher commissions is one huge reason.

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Not sure where the data for the 6/30 quarter comes from ... probably analyst checks. Did anyone notice that TMobile has a higher share than Sprint?

This could mean two things ... assuming the data is accurate.

1. Sprint sold much much much fewer iPhones than in any other previous quarter.

2. TMobile had a blowout quarter for iPhone sales.

The fewest iPhones that Sprint activated in a quarter is 1.5 million. TMobile was projected to activate about 500 to 750 million iPhones this quarter.

Either Sprint is in huge trouble or TMobile doubled Wall Street's expectations.

NOTE - I realize that the data is for iPhones sold at a particular store ... I'm assuming that TMobile and Sprint iPhones are sold at a similar rate at BestBuy/AppleStore/Others.

NOTE 2 - I realize that all analyst info needs to be taken with a grain of salt.

I prefer T-Mobile over Sprint, no doubt about it. I just hope T-Mobile doesn't oversell their services and become lame.

 

[ChrisA]

...
In the U.S., Apple has roughly 250 retail stores, compared to more than 10,000 third-party retail outlets that sell the iPhone. In addition to that, Apple's retail stores are extremely busy and it remains to be seen if the company can dramatically ramp up its iPhone sales without hiring more staff or opening more locations.....

to move to 20% to 80% without building four times as many stores Apple will have to reduce the TIME each sale takes. If it currently takes 10 minutes to sign a contrct and take payment and activate a phone then cut that time to ONE minute.

We did this in the 1970's when I worked at a McDonald's burger store. We had lines at every cash register, we were flooded with customers So how to double sales? Answer was to reduce the time each transaction takes. The customers liked this and the owner liked it. We sent employees out into the lines and asked what people wanted and forwared that information to the kitchen, bypassing the counter person at the register. Then when the customer came the the counter and payed the food was already there.

This would never work today because the current pay at McD's will not attract a staff that can pull off a system like them, running paper note back to the kitchen and getting the timing right. But Apple is able to hire good staff and could pull this off. They could have their people in the PARKING LOT and get the customers at they leave their cars. Do the deal outdoors and send a photo of the customer to the store were the product is ready for the customer to "grab and run". THere is mre to it but the ONLY way is to reduce the time the customer spends in the store, or build more stores.

At McD's we even got to the point of having guys in the parking lot who would point drivers at empty spaces so they would not spend time looking for a place to park. We'd have one employee stand in the "best" available parking space with a hand raised. Another in the driveway you point this out to incoming cars. No one wasted time hunting for a spot and we got them out of the store every quickly to make room for the next customer.

What Apple needs to count is not how "packed" their stores are but how many people per hour leave with a product in hand.

 

[AppleScruff1]

Not sure where the data for the 6/30 quarter comes from ... probably analyst checks. Did anyone notice that TMobile has a higher share than Sprint?

This could mean two things ... assuming the data is accurate.

1. Sprint sold much much much fewer iPhones than in any other previous quarter.

2. TMobile had a blowout quarter for iPhone sales.

The fewest iPhones that Sprint activated in a quarter is 1.5 million. TMobile was projected to activate about 500 to 750 million iPhones this quarter.

Either Sprint is in huge trouble or TMobile doubled Wall Street's expectations.

NOTE - I realize that the data is for iPhones sold at a particular store ... I'm assuming that TMobile and Sprint iPhones are sold at a similar rate at BestBuy/AppleStore/Others.

NOTE 2 - I realize that all analyst info needs to be taken with a grain of salt.

Apple hasn't even made that many iPhones since it was introduced.

 

[wigby]

There is none, but there needs to be. I mean, the customer service is great but who's going to travel miles out of their way for customer service?

People who want great customer service travel miles out of their way for it. But most people who don't care about customer service will just order it online. Free next day shipping for an iPhone would be much better than the current shipping which is free but involves waiting for phones to ship from Hong Kong.

 

[Michael Scrip]

People who want great customer service travel miles out of their way for it. But most people who don't care about customer service will just order it online. Free next day shipping for an iPhone would be much better than the current shipping which is free but involves waiting for phones to ship from Hong Kong.

Speaking of shipping... my mom pre-ordered her iPhone 4S... so of course they had to ship it.

But I went to a Verizon store in December to get my iPhone 4S... two months after launch... and I still had to order it.

Do carrier stores keep iPhones in stock now?

 

[spicynujac]

What is the benefit from buying iphone in Apple store? Does they give even a candy? Nothing. Then, why should I buy it there?

Exactly. Personally I don't see the advantage of buying a phone in *anyone's* store versus ordering it online but maybe thats just me. I'd much rather save $50 in taxes and have it show up on my door than make a special trip, but then again I rarely buy things at retail stores. But if I did, I would buy from the one that gave me the best deal, so, come on Apple, offer something!

 

[spicynujac]

For the record, whenever I go to an ATT store to buy a phone, it takes less a minute to talk to someone.

I always purchase online, but I've been in the Apple store with friends, and it is a unique experience which I found fun and interesting. I didn't time anything, but there seemed to be enough associates where if you wanted to rush in, buy something, and leave, that would be possible, but honestly I wanted to spend 5-10 minutes just checking out all the gear.

I've been in the AT&T store with friends, and they made us take a number and we literally waited 15+ minutes just standing there until they called us. This doesn't surprise me though, phone carriers have some of the worst customer service of any business or product types according to consumer surveys. Apple is one of the best. Your experience above is atypical.