CHINA TOPIX

04/25/2024 11:42:00 am

Make CT Your Homepage

Apple Planning Retail Change in Preparation for Apple Watch

apple-angela-ahrendts

Apple's new head of retail is preparing big changes to the stores.

Apple hired Burberry ex-CEO Angela Ahrendts last year for $70 million to change the retail experience. The launch of the Apple Watch is the first step for Ahrendts, as Apple moves from ordering in store to ordering online.

The unique problem for Apple is often times there are too many people in store. To cut down, Apple will only offer the Watch and 12-inch MacBook online with in-store reservation or pick-up available for customers.

Like Us on Facebook

This will allow Apple stores to act as a first access point for new customers, instead of acting as a showroom, sales floor and repair station all in one. It should remove a few of the customers that want to buy products in store.

Some investors are worried these new boundaries will make Apple stores less intriguing, but given most of the customers sit around computers and take selfies, we doubt it will affect the store's vibrancy too much.

Apple needs to make this change happen due to the customization options available on the Apple Watch. Customers can buy three different models alongside a range of different straps. It will only get more customizable as Apple adds more models and more straps -- meaning Apple needs to make sure customers know from day one the way to order.

Next year alone we might see three new models: ceramic, platinum and titanium. Straps are the biggest picture, though. If Apple can sell three straps in one generation of Apple Watch, it's a huge win for the company in terms of revenue.

Apple is beefing up its tech support and online helpdesk to account for the millions of potential Apple Watch customers. Watch and Watch Edition customers will receive full 24/7 support from Apple's Genius team.

The 12-inch MacBook will also only be available to purchase online. This makes it more likely that Apple will revert to the full catalogue of items only being available to purchase online for pick-up and set-up in store.

Ahrendts is trying to make the retail experience all about experiencing the product for a first time. Instead of impulse purchasing, which is a small part of Apple's retail revenue to begin with, the stores will become advertising magnets for the new products available.

Real Time Analytics