Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple

    Apples Challenge: Retail Balancing Act

    By
    eWEEK EDITORS
    -
    June 11, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Last month, Apple followed Gateways country store example by opening its first two retail stores, one in Tysons Corner, Va., and another in Glendale, Calif., to be followed by 23 stores later this year. Does this make sense for Apple, or will this move alienate the companys retail channel beyond repair?

      By all accounts, Apple has hit a home run with its first two stores, at least in their opening weekend. According to Apple, the stores saw 7,700 visitors and pulled in about $599,000, and that aint chicken feed.

      Although Apple has only about a 5 percent market share in personal computers, Mac users are passionate about their Macs. Apple really hasnt been well-served by the retail channel in the past, CompUSA and others notwithstanding.

      Potential Mac buyers have to sort through all the PC hardware before they can winnow out a retail stores few Macs, and then, more likely than not, the stores salespeople dont have a clue as to how to sell a Mac. And although theres enough Mac software to satisfy most users, you wouldnt know it to look at the selection in a typical computer store.

      Having its own stores will put Apple more in control of its retail presence. After all, all the products are Macs, and an Apple store can ensure that theres a large selection of software and Mac peripherals available that will work with Mac computers. Thats sure to warm the hearts of Apples software and hardware developers.

      Through its stores, Apple can extend its hardware-selling strategy to include the high-margin products of services, software and training in areas that are underserved by VARs. For too long and with few exceptions, Mac users have had to rely on mail-in service or lackadaisical and inefficient retail channel repairs. Apple stores will provide a quick turnaround on repairs for Macs in and out of warranty—especially those little niggling repairs such as replacing port doors or rubber feet that fall off.

      What Apple cannot do is alienate its best retail channel vendors by opening up shop right in their back yards and siphoning away their business. For its retail stores to truly work, Apple needs to find the right balance between its own stores and its retail channel. Apple needs to pay close attention to, and learn from, Gateways recent stumbles and not build retail stores too fast. A limited number of stores in areas of the country that are underserved, especially large metropolitan areas, seems to make the most sense.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×