MacDailyNews - Where Mac news comes first

May 19, 08 - 09:11 am Comment from: Ampar

They should have a special edition copper iPod available with a wool cover.

May 19, 08 - 09:11 am Comment from: ChrissyOne

There's no chance that they'll be successful in retail. I mean, look at what happened in Gateway Country!

May 19, 08 - 09:12 am Comment from: HMCIV

What's David Goldstein up to these days anyway?

May 19, 08 - 09:17 am Comment from: auren

Fascinating reading the article from 2001. I well remember the nay-sayers back in those days, and then see the line-ups for each store opening.

Man I like seeing an under-dog finally succeed. Especially when I switched from PC to Mac back in 1994.

It's time to turn the lights off on a costly mistake.

Oh wait... you mean they're actually successful?!?!

NEVER underestimate Apple.

May 19, 08 - 09:34 am Comment from: Ampar

More of Goldstein's wisdom from the NY Times (By Jennifer Lee, Published: July 12, 2001):

"No computer manufacturer has successfully branched into retail stores, Mr. Goldstein said. ''It's completely flawed,'' he said of Apple's venture. ''They'll shut it down and write off the huge losses in two years.'"

And another gem from BW Online (By Cliff Edwards, May 21, 2001):

"Rather than unveil a Velveeta Mac, Jobs thinks he can do a better job than experienced retailers at moving the beluga. Problem is, the numbers don't add up. Given the decision to set up shop in high-rent districts in Manhattan, Boston, Chicago, and Jobs's hometown of Palo Alto, Calif., the leases for Apple's stores could cost $1.2 million a year each, says David A. Goldstein, president of researcher Channel Marketing Corp. Since PC retailing gross margins are normally 10% or less, Apple would have to sell $12 million a year per store to pay for the space. Gateway does about $8 million annually at each of its Country Stores. Then there's the cost of construction, hiring experienced staff. 'I give them two years before they're turning out the lights on a very painful and expensive mistake,' says Goldstein."

Quick trivia...
What was the third store to open?

May 19, 08 - 09:53 am Comment from: Ampar

"3. Willow Bend - Plano, TX - (Aug. 3) - indoor mall. In mid-2006 the theater was removed, and the Genius Bar was moved to take its place and upgraded to five positions."

(ifoapplestore.com)

<< What's David Goldstein up to these days anyway? >>

Would you like fries with that?

May 19, 08 - 09:58 am Comment from: Woody

*snicker*

If I were an asshat, I'd email him and ask how his prognostication about Apple Retail worked out.

*points in David Goldstein's direction and laughs!*

May 19, 08 - 10:03 am Comment from: rahrens

"I give [Apple] two years before they're turning out the lights on a very painful and expensive mistake."

Yes, very painful and expensive to Apple's competitors!

It's not just the retail store that is successful, but the fact that customers and potential customers can actually go some place to actually see, touch, and experience the products, and speak with real people face to face for advice, questions, and problems. Too many other companies are trying to outsource everything overseas. This drives folks nuts. Imagine if your car needed work and you couldn't actually speak to someone face to face about it. It would drive you insane. Why did brands like Acura and Lexus succeed? Great customer service and experience. Same goes for the Apple stores.

May 19, 08 - 10:20 am Comment from: Cubert

Thanks for the quotes MDN and Ampar! Excellent!

I remember when Apple announced the stores and the naysayers jumped on it right away. It turns out the stores were one of the last pieces in the puzzle that gets Apple's name out there and allows people to have a hands-on experience with their products.

Note to David Goldstein....

Apple doesn't sell P.O.S. Gateway PCs. That's why their stores have been wildly successful whereas the Gateway Country stores were an absolute flop.

Sadly the stores are starting to become fancy Best Buys.

I remember when you'd go into an Apple Store that had a theater and watch the MacWorld keynote... or the WWDC keynote -- live.

Now it's just filled with kids who should be working at the Gap.

they are building a new shopping center at alexanderplatz (one of the central places) here in berlin. would have been a perfect match for the first berlin apple store. ah wait ... i must be dreaming.

RE: MacDailyNews Take
MDN should give a "where are they now?" with all the iCal'd quotes.

I had the impression that the Apple Stores were now selling $4800 per sq ft, not $4000.

Also, while it's easy to laugh about it now, the fact is, the leases on that retail space are incredibly expensive. Apple has huge future obligations, in the billions.

Apple had no choice but to open it's own retail stores. None of the pundits figured that out. Apple HAD to open its own stores or die.

1. That was the only way most PC users would ever see a Mac in the wild.
2. No one else cared about marketing the Mac—not Sears, Best Buy, Circuit City, etc. etc. etc.
3. Mac establishments in existence were too few and far between and they were NEVER in high-traffic areas of well-heeled malls.

The very thing most pundits thought was bad—expensive mall space—was the very thing Macs needed most. Exposure to a well-educated, upscale, non-Mac audience that was actually shopping for their home, not buying for their IT department.

May 19, 08 - 04:58 pm Comment from: Ampar

Performas abused and suffering in Sears stores. Those were dark times.

Too much glass - remind me to be elsewhere when the earthquakes hit.