Inside Apple’s ‘Unrealistic’ Retail Plan

Despite already operating the most lucrative square footage across the global retail landscape, Apple wants more from its hugely profitable retail presence. According to Apple CEO Tim Cook, the company wants to get to a point where at least half of all iPhones are purchased at a physical Apple store. The latest data available suggestions …   Read More

1528 0
1528 0

Inside Apple's 'Unrealistic' Retail PlanDespite already operating the most lucrative square footage across the global retail landscape, Apple wants more from its hugely profitable retail presence.

According to Apple CEO Tim Cook, the company wants to get to a point where at least half of all iPhones are purchased at a physical Apple store.

The latest data available suggestions that only 20 percent of all iPhones are sold through Apple stores.

As of May 2013, Apple had 406 Apple Stores worldwide. While not a small footprint in retail, it’s tiny when compared to the major retailers that also conveniently offer Apple’s iPhone.

According to new analysis shared with AllThingsD by Consumer Intelligence Research Partners (CIRP), raising Apple Store iPhone sales to the level Cook is asking is a potentially difficult proposition.

“Apple has about 250 retail locations — most, if not all, very well-trafficked,” says John Paczkowski of AllThingsD. “But its carrier partners together have about 9,000… Add to that 1,000 or so Best Buy stores, and a bunch of other retail outlets like RadioShack, and Apple’s plan to claim iPhone sales share from its resellers seems a tough one to execute without a drastic increase in the size of the company’s retail footprint.”

In this article