How Apple Store Seduces You With the Tilt of Its Laptops
forbes.com
forbes.com
At the same time, almost all the Windows laptops are either running a demo app showing specs and videos you can't quit to the desktop from, have been rebooted by someone and are stuck on the welcome screen waiting for a password you don't know, or are turned off.
I haven't been able to buy a Windows laptop in stores for a couple years. They only stock junk with dim, low-DPI 1366x768 screens, and don't let you try them out enough to tell if you want to work on that computer every day for the next few years. I've ended up relying on online reviews and videos to pick models, then using manufacturers' sites to custom build them with decent screens and SSDs (14" 1600x900 in my HP Envy right now).
If I were forced to replace my laptop today, I'd be mighty tempted to make a switch to a MBA or MBP, even if just to run Windows on it. I hope the retina displays and Win8 release push the rest of the manufacturers to build some decent alternatives next year.
Why is that? My guess would be that it's related to the bloatware on the PC. There is probably some agreements where they agree to have their logo and application name displayed in store on the slideshow. Or something else? Different marketing strategy by MS? Can MS really think the slideshow of bloatware logo and specifications are going to help sell?
The first thing anyone looks at on a laptop(unless it's closed) is the screen. And often, there is little to no branding on the keyboard and screen.
So when you have a row of Asus, Acer, Compaq and HP ultrabooks/laptops sitting in a row, each OEM needs to find a way to differentiate themselves from the rest. Apple can present the unlocked shell because nobody else sells OSX devices.
Finally, if you have style, create your own set of system sounds.
They absolutely do - they pay for the floor space in retail stores. They also have their own reps who manage the products there; performing software updates to new OS versions, installing new demo apps (i.e. iWork, iLife, etc), and managing the ticketing.
They also provide training to staff (in-store and online) and have a strong preference that only trained staff sell their products.
(I did a short stint in retail here in Australia between jobs when I was studying; so this is first-hand).
Even if Apple didn't sell laptops, you know they would want their own little corner for the iPad. The last time I was in my local BB, the Apple section looked like a little Apple store (as always). The other tablets were lined up shoulder to shoulder and locked into plastic cases bolted to the shelves. Some were setup so you could actually pick them up. Quite a few were dead (probably uncharged). Other than a basic grouping by screen size, it was a "Here's a bunch of tablets, good luck" situation. It's no surprise they don't sell too well.
I'd imagine BB loves the Apple stores. It gives them something that no one else has... a little Apple store. Even if they have to kowtow to all of Apple's demands, it must be a good deal. When an Apple laptop sells (lets say at an average of $1200), how much do you think Best Buy gets of that? $50? $100?
When a $400 or $800 PC laptop sells, how much do you think Best Buy gets? $15? $25? Even if BB gets the same percentage for all laptops, or even a lower percentage for Apple... I'm guessing the higher average sales prices makes up for it.
Apple's margins are famous, and if I was Best Buy I'd want in any way I could.
It's actually a pretty good deal for Apple too. Some beautiful Apple computers, fun to play with, and well setup. Just 10 feet away there is a sea of identical PCs, often with cheap plastic and poor screens. There are some good ones in there (and maybe promoted on isle caps), but still.
Service and sales have withered on the vine, support is all that's left.
All that said, Apple accessories and third party accessories? Yes ma'am! Sickening margin.
Technically, none. Best Buy doesn't mark up Apple computers at all; Apple pays kickbacks after the sale of devices. (At least, I'm assuming that nothing has changed since 2009).
May seem pedantic, but from an SCM standpoint, it's an important difference.
I don't doubt this is true for most commodity pcs but I wonder if Apple isn't the exception here. I'm sure they do pay setup and material costs on the special displays themselves but I doubt they are paying special kickbacks above that for better placement.
For one thing they don't have to pay special kickbacks they could just sell their gear to best buy for less. We know that isn't the case because we can confirm that the margins for Apple stuff at Best Buy is pretty terrible because the commission staff there always steer you towards something else.
It was rare to see a display computer that didn't have MS Paint running with the previous person's doodle sitting at pride of place in the middle of a 320x240 screen (which felt like about a billion pixels back then).
In fact I remember going to one of these stores when I was about 8 and asking the salesman about which games were available on the PC, at which point he promptly dropped the system out of Win 3.1 and into DOS , loaded up "The Secret of Monkey Island" and left me to play for about an hour while my parents went off and did some other shopping.
That was probably the point at which I decided I wanted my next system to be a PC rather than a Sega Genesis.
I suppose Apple is in a similar position, most people are roughly familiar with Windows and are mainly shopping around for specs/price. You could waste a lot of time playing with a system and asking the salesmans advice only to go off and buy the thing on amazon.
With Apple devices they don't care where or when you buy it since they take money either way but since most people are not going to be familiar with OS X there is a definitely an advantage to selling "the experience".
I had a somewhat similar experience with the Apple Store though. I wanted the 15" MacBook Pro with the matte, high-res screen, but my local Apple store doesn't stock those except for the highest end model. So they "lost" a sale, but they don't care because I'm still ordering it from the same company. That's the power of owning the whole channel.
10 PRINT "I AM AN ELITE PRE-TEEN GEEK IN THE EIGHTIES!"
20 GOTO 10Then, I saw an employee carrying around two very nice looking Ultrabooks (The new Samsung Series 9 and XPS 13 [both of which, incidentally are very hard to find on the manufacturers websites]). They were not out for display anyway. I played with them a bit and then incredulously asked "Uh, why don't you have these out, they're slick."
The reply was "We just got those in yesterday or the day before". That is something I can't imagine happening in an Apple store.
Because the apple store only gets new machines once a year... so thats a bit of a loaded remark.
It's a luxury Apple have that other business models can't really afford to emulate.
From anecdotal experience, it really does make a massive difference in the level of interaction customers have with the products. Even if people just come in because they haven't been in an Apple store before, the first thing they do is push the screen back and by that point they've already started interacting with the computer.
The contrast is even sharper in other countries. In some places it is a huge cultural no-no to go into a store and start touching stuff. Just try going into a toy store in one of these places with a US-raised kid used to ToysRUs.
Also, when required they can re-install the machines using a network boot with an ready made image. Pretty much the same way that they rebuild customer machines (if you ever get a reinstall at the genius bar they no longer grab an external hard drive or DVD, they simply plug it into a network cable and network boot it, they then select from a list of options and the re-install happens automatically from there... pretty slick system (BTW, that is how they have all of their diagnostics tools available as well).
If you go to Worten, or Carrefour and try to use an iPad you will find no Internet(!), with password protected Wifi, it seems they are "saving" money, or they don't want people to use the machines at all, only buy them. The machines have no interesting apps on it.
Just the other day it looked like someone were boycotting the Apple stand on purpose, you will see the Ipad3s with the zoom enabled and other accessibility options enabled, and a stupid ugly customer face as background. It was hard to use the machine at all, and it was energy depleting.
Then I went to an Apple store, wow!, what a difference just adding useful apps and Internet. It seems only natural but it has been carefully orchestrated.
*I don't exactly remember about "accidental" part. I suppose that store would be required to prove that action was intentional in court.
I damn near wrecked my aunt's new Dell last week the instant I tried to open its screen (to install anti-virus and remove factory junk). If I had used just a little more pressure, her laptop would've landed 3 feet on the floor and would certainly break. Bad fortune for a laptop that hasn't even been booted once...
So I guess a typical Wintel user that is used to these stupid screens would be amazed at how MacBooks are different.
I hate those places with a passion, and as a deaf guy I constantly get people just leaving me without any help after I mention for the third time to speak the fuck up. I wish I had an Apple store here, maybe buying things in a store would be more enjoyable :(
An Apple Store in New Zealand (and possibly other places) would do wonders for the brand - I only switched to Mac after a visit to the US. The next-best-thing we had in Auckland was MagnumMac - it was OK but it was no Apple Store.
Now, it doesn't seem to matter when I go to the Apple stores around me, they're buzzing with tons of activity.
Also, being close to an Apple Store helps other stores as well. I've seen so many parents just leave their kids at the Apple store while they run off to Victoria's Secret or BB&W. That section of the mall is completely busy when before it was just foot traffic going to Macy's or another anchor store.
It's not a condition though. My local Microcenter sells Apple laptops (always have) and have a little section for them, but it's not run by Apple. It looks like the rest of the store, and isn't laid out like an Apple store.
I've bought a laptop from Microcenter, and boy was it something I regretted ...
why not difference between Apple and f.ex. Sony Center which are also designed to engage the customer, let him play with the product? I'm not a fan of Sony, but know many people who liked their stores, that's a better comparison than a supermarket.
The Best Buy in my neighborhood is more convenient by about 90m than the Apple Store. But I generally refuse to go to Best Buy for anything that I can't find on a pegboard, like cables or a USB drive. Everything else, I get random unavailability, clueless salespeople, and a really strange mildew smell from the upholstery.
Smells like doom, really.
are there some numbers to support that? I mean, f.ex. no of macbook pro and sony bravia or xbox sold in the supermarkets vs sold in brands' stores? I always get the feeling that such stores exist to keep appearances and attract new customers, not to work as a main selling point. selling 20 laptops through bestbuy is probably way cheaper and quicker than selling 20 laptops through it's own store.
It's important to keep in mind that going into retail looked absolutely ridiculous when Apple announced their first retail store, for some of the reasons you have enumerated. Gateway was what people thought of as a computer retailer, and they were dying. Execution matters.
I wonder if your store was average for the AAPL universe.
http://allthingsd.com/20120323/best-buy-is-selling-nearly-as...
As far as laptops and computers go I don't know why it'd be cheaper for Apple to sell them through Best Buy. The prices are rigidly controlled and so their margin has to be lower for other retailers then when they sell direct.
Sony stores are not quite Best Buy, but they've only captured about 10% of the experience that makes Apple stores different.
The fact is that a cake without eggs needs artificial eggs(industry products with natural eggs are very dangerous so they have to replace it with shit). The product tastes very different, is not as healthful (in fact is wrong for your health).
They attribute the effect to a minor cause.
I happened to be leafing through a womens' mag while waiting for an appointment recently and there was an article on simple ways to save on spending.
The article said to never try on clothes when you are window shopping or "just looking" at a store. The reasoning was similar to this article on Apple: When you try something on and see it on yourself in the mirror, you now own that piece of clothing in your mind. And by not purchasing it, you actually experience a loss. As if you owned the item and now it was taken away from you.
This emotion is ostensibly more "painful" than simply wanting an item and not purchasing it.
It's false.
It's what YOU, the end consumer of Apple products, pay for - random people checking out their products. It's in YOUR price tag.
I personally don't like MY money being distributed that way.
We can say the exact same thing about test drives, trial subscriptions, free samples at Costco, etc etc. Any type of "sampling", or indeed any marketing, can be said to be paying customers subsidizing non-paying customers.
All of the above cases are completely absurd points to make, including in relation to Apple.
What I do have trouble is the general sentiment that they go out of their way to help you, and it is just embedded in the price tag. And the blame for that is not even on Apple side - it's on you.
And, like I've stated, I just PERSONALLY don't like it, as a general practice.
The cost of an Internet line and some maintenance is negligible with the cost of the store itself. Apple sells much more laptops that anybody else per store square meter(from 10x to 100x) with a profit margin higher than anybody else.
The cost are much smaller than the competence, with switched on pcs than nobody could use(password protected).
It seems common sense it not so common after all.
I have not really studied Apple, but last few years I have been checking out their laptop lines, I could only see cost increase of whatever is the current line.