Report: Apple Retail Stores Now Focused on Revenue, Receive Budget Cuts
August 28, 2012 8:57 AM
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Apple's new retail chief looks to trim the fat
Odd things have been happening at Apple retail stores over the last few weeks. Earlier this month, reports started surfacing that a number of retail workers at Apple store locations had been laid off. Apple
to those reports by saying that it had "messed up" in its retail hiring formula but hadn't laid anyone off.
"Making these changes was a mistake and the changes are being reversed," said Kristin Huguet, Apple spokeswoman, at the time. "Our employees are our most important asset and the ones who provide the world-class service our customers deserve."
However, reports are coming in that Apple stores are seeing their budgets cut, and a bigger emphasis is being placed on revenue. With a
market cap of well over $600B
and record profits quarter after quarter, it seems a bit odd to be placing such a heavy focus on revenue and cutting the budget of its retail outlets which have historically been very customer friendly.
reports that employees still haven't received an official explanation of changes made in staffing levels, and that signs continue that Apple is focusing on revenues and profit instead of customer satisfaction.
According to sources cited by
, employee performance standards have been modified to place an emphasis on sales functions. Reports also indicate that more small products will be stocked at Apple retail stores and several budget categories for the retail outlets have been cut, including the budget for store maintenance.
Sources say that workers are allegedly being evaluated based on the number of contracts sales for iPhones they're able to generate and a number of "essentials per hero product" sold with each product such as cases, and accessories. The sources also indicate that the number of training areas in stores is being reduced to accommodate the extra small products and accessories.
IFO Apple Store
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RE: I'm sorry
8/28/2012 11:10:05 AM
Nice post. The post-pc whiners are having a hard time getting over the fact that their dull PC is fading into the sunset. This article helps bring this point home ->
RE: I'm sorry
8/28/2012 12:16:11 PM
I think there is a lot of confusion about PCs and mobile devices.
The PC isn't going anywhere. It's just that the whole mobile scene is relatively new so all the hype is surrounding that market. Of course new markets grow faster than established markets. That doesn't mean that the established markets are going away, it just means that the new ones will grow faster until they reach a point of equilibrium.
I remember just a few years ago all the hype was surrounding netbooks and nettops. People hyped up the Atom CPU, saying how netbooks were going to take over laptops. A few years later and we see a totally different picture. Netbooks ran their course, became mature, and gathered the market share that they were going to take. Both netbooks and laptops are still around, and their respective market shares indicate customer demand for them.
The entire tablet craze will eventually come to an end and the hype will go away. Once the hype clears you're left with a mature product that's going to do what it's going to do. The tablet won't go away, it's here to stay. It'll have a place in your home just like your PC and smartphone.
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
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