Apple's new store on the Upper West Side opens on Saturday at 10 a.m.
(Credit: Marguerite Reardon/CNET)NEW YORK--Apple hopes to grow its market share with an increasingly aggressive retail strategy that includes opening bigger stores in more locations.
At a media preview of its fourth store here, which is located on the Upper West Side, Ron Johnson, Apple's senior vice president of retail, said Apple's retail strategy is all about getting consumers to switch from PCs to Macs.
"Our Apple stores are a magnet for switchers," he said. "About half the people who come into our retail locations are first-time Mac buyers."
Johnson said that Apple's Genius Bar, which provides face-to-face customer service and support, and other services, allow people to switch from a PC to a Mac with confidence. For example, Apple offers its One-to-One service, which allows new Mac users to drop off their old computer so that files can be transferred from the older computer to a new Mac.
The new Apple store on the Upper West Side is the first to have a glass ceiling.
(Credit: Marguerite Reardon/CNET)The service, which costs $99 for one year, then allows users to meet one-on-one with an Apple representative to discover where the new content is on the computer and to learn how to use more advanced features. Customers can use the one-on-one instruction service as much as they like for that one-year period.
Johnson also said that the Apple stores provide a good way for customers to test out and play with new products before they buy them. Even if customers don't buy their Mac, iPhone, or iPod in the Apple store, the experience they get from looking at it in the store is often enough to help them make a purchasing decision.
The strategy seems to be working. Apple has been increasing its overall sales and market share for its products over the past year, particularly for its Macs. In the third quarter of 2009, the company sold about 3 million new Macs, which was a 17 percent increase compared to a year earlier, according to IDC. This was well ahead of the overall global PC market, which grew by only about 2 percent, according to IDC. For 19 of the last 20 quarters, Apple has outpaced the market in terms of sales.
Even though overall sales have increased, Apple hasn't made huge gains in market share. But it has made modest improvements. Over the past year, the company has managed to bump its market share up to 9.4 percent in the third quarter of 2009 from about 8.6 percent in the third quarter of 2008. Apple is in fourth place in the overall computer market, lagging PC makers Hewlett-Packard, Dell, and Acer.
In 2001 when Apple opened its first store, plenty of people questioned whether Apple's retail strategy would even work. But eight years and 279 stores later, the retail business has become a big revenue driver for the company. In fiscal 2009, Apple generated $6.6 billion of the company's $29.9 billion in revenue from its retail stores, Johnson said.
Some of the stores, such as the Fifth Avenue store in Manhattan, which sits below a glass cube across the street from the Plaza Hotel, have become tourist destinations.
Apple purposely puts stores in high-traffic areas to attract customers, Johnson said. And in the case of big stores like the ones in Manhattan, it's also important to put them where people visit. Worldwide some 170 million visitors entered an Apple store in fiscal 2009.
Apple's flagship stores, or as the company calls them "significant stores," are especially designed to draw in visitors with eye-catching design and architecture. And the new Upper West Side store at Broadway and 67th Street is no exception. The new store features a glass roof, the first ever for an Apple store. And it also features 45-foot-tall stone walls, a large ground floor to showcase products, and a glass spiral staircase that leads to the lower level of the store where Apple provides service.
Apple plans to open between 40 and 50 new retail stores in 2010. More than half of these new stores are expected to be outside the U.S. Some of the countries where Apple will open new stores include the United Kingdom, Canada, Australia, Italy, Switzerland, Germany, France, and China, Johnson said.
Apple's main competitor, Microsoft, is trying to emulate Apple's retail success by opening up stores of its own. Recently, the software maker opened locations in Scottsdale, Ariz., and Mission Viejo, Calif.
Apple's latest Manhattan store on Broadway at West 67th Street will open to the public at 10 a.m. EST on Saturday.
Apple's newest retail store is on Broadway and 67th Street in Manhattan.
(Credit: Sarah Tew/CNET)Apple's latest Manhattan store doesn't officially open until this Saturday, but it had the press in today for a sneak peek. Of course, because the store's made mostly of glass, the general public can get a pretty good idea of what everything looks like inside--except for what's below ground.
Click on any of the images to launch the slideshow.
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Screenshot by Rafe Needleman/CNET)
One of Apple's smaller announcements at Wednesday's music-focused event was that you'll be able to share your deepest iTunes hopes and dreams through Facebook and Twitter.
Well, more specifically, you'll have "Share on Facebook" and "Share on Twitter" options in a drop-down menu on album purchase pages in the iTunes Store to broadcast which music in which you're interested.
Basically, this means that you can show off your music taste or attempt to convince friends to buy albums for you. The links in Twitter tweets and Facebook posts will likely go straight to the option to purchase the album, potentially driving up sales.
An example of what you can get when you 'Share on Twitter.'
(Credit: Screenshot by Rafe Needleman/CNET)This is a pretty standard practice likely accomplished through implementation of the social sites' APIs rather than a formal partnership--the latter of which was probably required when Apple brought Facebook Connect to the iPhoto desktop software.
The more interesting part? It looks like this officially proves that an extremely dubious set of screenshots that hit the Web last month--showing buttons for Facebook, Twitter, and social-music site Last.fm integrated directly into the iTunes app--are indeed fake.
Disclosure: Last.fm is owned by CBS Interactive, which publishes CNET News.
Microsoft's retail plans are getting a big boost as the company confirmed to TechFlash that it has hired a former Apple retail executive to help with its store openings.
Here's an Apple store in Scottsdale, Ariz. Will a Microsoft store pop up nearby?
(Credit: Apple)George Blankenship, a Gap executive before joining Apple, was in charge of finding the prime locations that Apple picks for its retail stores. His work with Apple goes back to the start of the decade when Apple kicked off its retail endeavor.
Blankenship is working for Microsoft as a consultant, not as an employee, according to a report on TechFlash.
Whatever his role, Blankenship will be an important addition to Microsoft's retail team, especially considering the strategy it announced last week. Microsoft representatives told CNET that some of the stores will be close to existing Apple retail locations, hinting that it isn't afraid to battle Apple head-on.
Besides the design, one thing that has continually set the Apple retail stores apart from other computer outlets is the location Apple chooses for them. While many computer retailers put their stores in high-traffic malls, Apple tends to choose trendy, upscale locations.
An employee was shot Friday at this Apple store on Clarendon Blvd. in Arlington, Va. Customers were inside the store when the shooting happened, but no one else was injured, police say.
(Credit: Apple)Update at 11:25 a.m. PDT July 4: Police have released two surveillance tapes on YouTube of the suspect entering the store and of the suspect fleeing the scene.
An employee at an Apple store near Washington D.C. was shot and wounded Friday morning, police have confirmed. The victim, a 26-year-old woman, is currently at an area hospital recovering from a wound to the right shoulder. She is said to be in serious but stable condition.
Police say the shooting occurred about 10:15 a.m. EDT at the Arlington, Va., Apple store at 2700 Clarendon Blvd., in a busy, upscale shopping area. Some media outlets are calling the incident an attempted robbery, but Detective Crystal Nosal of the Arlington Police Department told CNET News it's "still too early to tell." The victim, Nosal said, "is obviously under medication in the hospital so interviewing is difficult."
Someone rang a doorbell at a back service entrance of the store, according to police. A short time later, another employee heard a gunshot.
Police say customers were present in the store at the time of the shooting, and employees helped them exit. No other people were injured.
Mike Evans, a software developer, was shopping for a new laptop at the time of the shooting and told The Washington Post at least a dozen employees and about 30 customers were inside when he heard what he thought was "boxes falling."
"It never crossed my mind that there would be a shooting there, in Clarendon," Evans told the newspaper. "An employee went to the back room and then we heard a woman's scream. I didn't wait to find out what happened."
Police are describing the suspect as a black male between 35 and 45, with a medium build and facial hair. He was wearing light-colored pants, a light-colored short sleeve shirt, and a dark baseball hat. He was carrying a handgun.
Police say the incident does not appear to be related to any other crimes in the area.
"We are shocked by this senseless act of violence and our thoughts are with this co-worker and her family," Steve Dowling, a spokesman for Apple's corporate headquarters in Cupertino, Calif., told the The Washington Post. "We're working with police to catch the person who committed this act."
Anyone with information about the shooting is asked to call the Arlington County Police Department tip line at 703-228-4242 or Detective Alan Lowrey at 703- 228-4199. Lowrey can also be reached via e-mail at Alowrey@arlingtonva.us.
First iPhone 3G S buyers emerge from New York's Fifth Avenue Apple Store.
(Credit: Caroline McCarthy/CNET)SAN FRANCISCO--What a difference a year makes.
Apple released its third-generation iPhone Friday, but considerably smaller and quieter crowds came out for the smartphone's debut. It was a stark contrast to the frenzied first day sales of the original iPhone and last year's iPhone 3G. Friday's lines outside stores across the country were reportedly 100- to 200-people deep in some places, falling short of the lines that sometimes stretched for blocks in 2007 and 2008.
Also different this year was the activation process for new phones. Both Apple and AT&T's servers appeared to hold up much better this year, with many buyers Friday morning reporting quick, easy transactions. After just an hour, folks lining up outside Apple and AT&T stores in New York City, San Francisco, and Emeryville, Calif. were filing into the stores in an orderly manner, with no brawls breaking out over line-jumping or the headache-inducing activation problems of last year to be found.
The relatively lower turnout in the early morning wasn't really unexpected. Both Apple and AT&T offered a few more options for purchasing the 3G S this year that appeared to reduce the chaos--offering preordering and the ability to reserve iPhones for in-store pickup. Some customers who may have wanted a new phone are not yet eligible for an upgrade from AT&T unless they want to pay a hefty "early upgrade" fee, and for others, the 3G S isn't that much of an improvement over the 3G model released last year.
... Read more
The rolling rollout of the iPhone 3G S is under way. Apple's latest iPhone has been going on sale Friday at 7 a.m. local time in each time zone where it's available.
We've got a team of people covering the launch. In the East, CNET News' Caroline McCarthy and Marguerite Reardon are reporting live from Apple and AT&T stores in Manhattan. Out West, Erica Ogg, Josh Lowensohn, and James Martin are keeping tabs on iPhone sales in the San Francisco Bay Area.
Are people lining up the way they have for past iPhone launches? Is the phone everything they expected it to be? Does it really take just 10 to 15 minutes to get set up? Tune in and find out as the day goes along.
... Read more
iPhone 3G buyers line up on launch day last year.
(Credit: James Martin/CNET)Despite the intense amount of interest in Apple's third-generation iPhone, this Friday's launch of the device may not bring out the hordes of Apple fans like it has in years past.
The first days that the original iPhone was on sale in June 2007 (and the iPhone 3G last July), lines at Apple and AT&T stores across the country snaked around city blocks, filled with both newbies and Apple's most loyal customers anxious to be the first to get their hands on the much-anticipated smartphones. Some of the most ardent iPhone devotees camped overnight to be first in line. And, as a result, the launches were always accompanied by a media frenzy.
Things could be different this Friday for several reasons: Some current iPhone owners are being forced to wait to upgrade by their carrier; the hardware update isn't as dramatic as it has been in the past; and there's the possibility that the novelty of line-waiting has worn off.
AT&T's policy for current iPhone customers--which it altered slightly Wednesday--could be the biggest deterrent. AT&T customers whose contracts say they are eligible for a phone upgrade between now and September, and who pay at least $99 a month for iPhone service, will be able to buy the iPhone 3G S for the same price as a new AT&T customer: $199 for a 16GB model, or $299 for a 32GB model. But if you don't fall into either of those categories, you could be eligible for "early upgrade pricing" of $399 for a 16GB and $499 for a 32GB. The full price of the phone without signing a two-year contract is $599 and $699, respectively.
Will people camp out for the new iPhone as in years past?
(Credit: James Martin/CNET)In other words, AT&T is making it prohibitively expensive for many customers who are in the habit of getting a new model iPhone every year. The reason makes sense--the carrier is subsidizing the cost of the new phone for those who sign contracts and doesn't want to do that every year--but it's likely to keep at least some of the most earnest and loyal iPhone customers away this Friday.
The other reason the crowds could be lighter this year is that the 3G S isn't nearly as big of a leap forward for Apple as in years past. (See CNET editor Kent German's full review.) The original iPhone was the single-most anticipated piece of consumer technology probably ever, and the iPhone 3G was a major upgrade in terms of hardware and network connection speed from the original iPhone.
The 3G S is faster and has better battery life, as well as some new features like video recording and voice control, but for many users it might not be as compelling an update. Plus, most of the features lacking in the iPhone and iPhone 3G can be corrected by downloading the new operating system, iPhone OS 3.0.
Another difference this year: Apple allowed customers to preorder the iPhone 3G S online for home delivery. Last year, customers were forced to go to an Apple or AT&T store to activate their phone.
Whether or not they come out in large numbers on Friday, it sounds like the process might be a bit more orderly this year. The iPhone 3G S will be available for purchase at Apple and AT&T stores starting at 7 a.m. on Friday. AT&T customers who preordered the device for in-store pickup can get their phones starting at 7 a.m. AT&T customers who didn't reserve one will have to wait until 9 a.m. The iPhone will be sold on a first come, first served basis at all Apple stores.
We'll be monitoring the launch in several different time zones on Friday as always, so be sure to come back here early Friday for the full run-down of the day's events.
Click the photo for more pics of last year's iPhone launch.
(Credit: James Martin/CNET)Apple Stores will now open an hour earlier than planned on Friday when the iPhone 3G S goes on sale.
Doors will now open at 7 a.m. in all time zones instead of 8 a.m. as the company had previously stated. The move makes sense since AT&T stores are opening at 7 a.m. Friday, though only for customers who pre-ordered an iPhone. AT&T's doors will open to sell the phones at 9 a.m. on a first-come, first-served basis.
As usual, we'll be following iPhone sales in various time zones. Will Apple fans stand in line for the third straight year? We'll find out. In the meantime, click the photo above for a gallery of very committed line standers from the 2008 launch of the iPhone 3G.
Apple has chosen Scottsdale, Ariz., to showcase its latest retail store designs. The new Apple store is opening Friday night and features some firsts for the company.
Pictures of the Scottsdale first appeared on The Loop late last night. With its cube-like structure, the store, which is set to open at 6 p.m. local time, is reminiscent of the company's in Manhattan. The difference is, in Scottsdale, the cube is the store, instead of just one of its architectural features.
When looking through the wall of windows on one side, you can see straight through to the other side of the store and out another wall of windows. If that wasn't enough to give you a feeling of space, the Scottsdale store also has a 75-foot long skylight.
While design is important to Apple, there are some enhancements to help customers in the new store, too. Like most stores, the new location will have a Genius Bar to assist customers--but this Genius Bar is 50-feet long.
With so much space, Apple will use some of it to train customers, offering free courses on its professional photography, music, and video editing applications.
In May, Ron Johnson, Apple's senior vice president of retail, said the company was going to continue to renovate its retail locations through the recession. He said the company plans to remodel a total of 100 locations this year and continue to open new stores.
