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Cook's plan to sell more iPhones in Apple Stores isn't realistic

Posted: , by Michael H.

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Cook's plan to sell more iPhones in Apple Stores isn't realistic
We have trouble believing that this is really something new, but as we heard from a recent meeting of Apple Store leaders, Apple CEO Tim Cook said that he would like to see more iOS devices being sold in Apple Stores, and not through carriers. Apple Stores generate huge profits for the company, and the torch has been passed from the iPod to the iPhone as Apple's gateway drug device.

Cook's plan to sell more iPhones in Apple Stores isn't realistic
According to Cook, only 20% of all iPhone sales happen in Apple Stores, although data from Consumer Intelligence Research Partners (CIRP) suggests that percentage could be under 15% (per the chart to the right). What's more, CIRP doesn't think it is even realistic for Cook to believe that Apple Stores can increase its share of iPhone sales without there being a massive increase in the number of Apple Stores around the world. Even just here in the U.S., Apple has just 250 stores compared to carriers, which are around 9,000 locations, and other retailers like Best Buy which make up around 1,000 stores

There have been rumors that Apple would start an iPhone trade-in program to boost adoption of new models, and that would help to get more people into stores, but it would also make Apple Stores (traditionally fairly busy places) even more crowded. So, unless Cook has some more innovative ideas, he may be asking for something that isn't really possible. 

source: AllThingsD

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posted on 17 Jul 2013, 11:51

1. sprockkets (Posts: 1611; Member since: 16 Jan 2012)

no apple store here for an hour drive on a freeway, and I live in a somewhat big town with a full size mall.

posted on 17 Jul 2013, 11:53 1

2. bubbadoes (Posts: 1225; Member since: 03 May 2012)

The carriers Verizon, Tmobile, Sprint, ATT and BEST BUY have very lucrative trade in offers on previous model phone. Best Buy will give you probably up to $300 towards the new purchase of any phone for the one you are trading in, which likely has to be a premium device to get a premium offer for your trade. Putting that aside-hence you are buying a itoy, you are likely to buy another itoy which buying at the Apple store is not an option if you trading in one itoy for another because they want hand you nothing but a phone and a contract and you a stuck with your old phone unless you sell it elsewhere

posted on 17 Jul 2013, 11:57

3. XPERIA-KNIGHT (unregistered)

O apple Is just soooo special Smh

posted on 17 Jul 2013, 12:33 5

4. PhoneCritic (Posts: 946; Member since: 05 Oct 2011)

Tim Cook is most likely trying to get ahead of the curve here. With Carriers in Russia dropping the iPhone, because of the tough demand from Apple, we may see the same situation begin to also surface here in the states. Verizon is under pressure because it entered into a tough multi-billion dollar contract (that extends out for years) with Apple to buy so many devices. Unfortunately with the slow down in high end devices demand ; because the saturation point has been reach and since Apple has no low end device( but is now scrambling to get one out) . Verizon is having a tough time moving its current stock of iPhones and is legally bound to purchase more iPhones from Apple. Sprint, AT&T and to some extent even T-mobile are finding that the slow down for Apple devices is having an impact on them. So with the carriers clamoring to re-negotiate terms with Apple Tim Cook it seems is threatening to by pass the carriers completely if the don't like the current terms.

posted on 17 Jul 2013, 13:50

5. stealthd (unregistered)

It was just recently shown that a little over half of Verizon's smartphone sales are iPhones, so it doesn't really seem like they're having too much trouble. The iPhone may be a tough buy in some markets, but the US isn't one of them, so the situation with two Russian carriers doesn't really apply.

posted on 17 Jul 2013, 14:06 7

6. ianbbaa (Posts: 332; Member since: 20 Mar 2013)

every single apple store is waiting for darkjedi´s visit...

posted on 17 Jul 2013, 15:27

9. ElixieR (Posts: 63; Member since: 01 May 2013)

sheep follows sheep

posted on 17 Jul 2013, 18:47

14. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Aswell as Mxzy®

posted on 17 Jul 2013, 14:20 2

7. InspectorGadget80 (unregistered)

Looks like apple just being greedy as always.

posted on 17 Jul 2013, 16:18

11. Doakie (Posts: 2227; Member since: 06 May 2009)

I was going to say the same thing. Greed is a good motivator.

posted on 17 Jul 2013, 17:34

13. stealthd (unregistered)

Their goal as a company is to maximize profit, same as any other company. But hearing this from a Walmart employee of all people is just hilarious.

posted on 17 Jul 2013, 20:07

15. InspectorGadget80 (unregistered)

I'm also a consumer too don't forget that

posted on 17 Jul 2013, 14:34

8. HASHTAG (unregistered)

Well there aren't any Apple stores in my state, so I kinda have no choice but to buy Apple products from my carrier, or third-party stores.

posted on 17 Jul 2013, 16:06

10. Kayle (banned) (Posts: 40; Member since: 26 Jun 2013)

Notice how they are all the same or lower except for T-Mobile who just recently got the iPhone, haha!

posted on 17 Jul 2013, 17:02

12. VZWuser76 (Posts: 4784; Member since: 04 Mar 2010)

Did they look at how many are sold online through the carriers as well. For people like me that live 75+ miles away from any store, corporate or an authorized reseller, I get all my phones online through the carriers or ebay. Why do people have to come into the store, why not just get them online?

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