Sorry Steve, Here's Why Apple Stores Won't Work
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Commentary: Sorry, Steve: Here's Why Apple Stores Won't Work
New retail outlets aren't going to fix Apple's sales
Well-trained Apple salespeople in posh Apple stores can convince would-be buyers of the Mac's unique advantages, including its well-regarded iMovie software for making home videos and its iTunes program for burning custom CDs....
With its top-notch brand and proven marketing panache, Apple should have a shot at improving on the Gateway Country Store model.
...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
"When you choose to compete with your retailers, clearly that's not a comfortable situation," says CompUSA Chief Operating Officer Lawrence N. Mondry.
http://www.businessweek.com/magazine/content/01_21/b3733059.htm
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