Apple sells only 20% of all iPhones through its retails stores; but as Tim Cook has pointed out during a meeting with Apple Store leaders, he wants that percentage to move up, because of the halo effect. Is Apple able to increase iPhone sales through its retail stores? AllthingsD and CIRP (Consumer Intelligence Research Partners) have tried to find out.
Apple went as far as reaching out to retail employees for ideas to boost iPhone sales. The company also hinted at forthcoming changes aimed to attract more traffic to Apple stores, such as a new iPhone trade-in program. In other words, we are going to see some attractive deals in the near future.
Yet, there are some constraints Apple needs to overcome. Although its retails stores are mostly well-trafficked, the 250 sounds limited compared to the combined 9,000 of its carrier partners (in the United States alone). And, if we add another 1,000 Best Buy stores and other retail outlets, Apple’s plan requires great efforts to reach the goal Tim Cook seeks.
If we consider the buzz around Apple stores when a new iPhone debuts, however, Apple could indeed increase the sales with great efforts: hiring extra staff, canceling vacations, etc.
“We don’t know, exactly, how Apple can realistically meet Cook’s goals,” CIRP co-founder Michael Levin told AllThingsD. “However one defines those goals, we can’t see how their mostly jammed stores can handle more customers, sales associates and inventory.”
In other words, Tim Cook’s goal appears to be realistic. But, as the study shows, there are some hurdles to overcome. In the end, the halo effect does its job well, so it would reward Apple’s effort.