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: The goal of a business is to make money
8/28/2012 5:54:01 PM
Make more money so Apple can afford to increase Tim Cook's pay raises. And several other top-level execs.
If it's the beginning of the end for Apple, then this "focus shift" is a step in the right direction. Time for some popcorn.
RE: The goal of a business is to make money
8/28/2012 7:25:27 PM
It is mind-boggling that they're messing with a method that has been so overwhelmingly successful: Put user-experience before profit and profits will follow.
If this also trickles down to compromising their user-focused product and technology design, then they really will be done for.
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