Filed under: Analysis / Opinion, Retail, Apple, iPhone
Apple Stores selling seven times the iPhones, and it's no wonder why
In addition to all the big numbers from that iSuppli report, there's one more fun little stat that's come out about the iPhone's sales: Apple Stores outsold AT&T stores by a factor of seven to one.Is anyone surprised by that at all? I've actually had the experience of shopping for an iPhone in both an Apple Store and an AT&T store (whenever I see either, I always stop, trying to psych myself up enough to finally buy one), and there's no question why Apple Stores are selling so many more-- there's almost no sign of the iPhone in AT&T's stores. While they have all of their other phones on display, the iPhones are kept in the back, and all I saw out front was a brochure. When I asked if they had them, the saleswoman didn't even have a model to show me.
In sharp contrast, anyone who walks into an Apple Store can pick up and play with an iPhone for as long as they want, which technique do you think sells more iPhones? Now, AT&T may not actually care that much-- if you're actually in an AT&T store, odds are they make more money by selling you any phone besides the iPhone, so maybe they're not concerned that Apple's steamrolling them but given the two experiences, there's no question why so many more iPhones are going out the door at Apple Stores.
Update: A few commenters are saying that some AT&T stores do have demo units in them. I haven't seen them in the couple of stores I've visited, however.
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Reader Comments (Page 1 of 2)
Aron Trimble said 9:21AM on 9-05-2007
That experience is interesting... It begs the question - what is Apple getting out of this partnership with AT&T?
Here Apple is pushing iPhones (and invariably AT&T contracts [although not for much longer]). But if AT&T isn't pushing the iPhone what benefit does Apple get? I'm sure T-Mobile or some other carrier would love a chance to take a bite out of the iPhone pie!
The whole thing just seems kind of one-sided to me.
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Jonathan Allen said 9:26AM on 9-05-2007
Many at&t stores have a display with live demo.
Be careful with blanket statements.
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matguard said 9:34AM on 9-05-2007
This is similar to saying "Apple Stores are selling MacBooks 3:1 over BestBuy."
People who go to Apple stores are interested in Apple products; they know what is available and might already want something.
Shoppers go into BestBuy looking for technology. People go into AT&T stores looking for phones. Neither of these shoppers are inclined toward Apple products.
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tommy said 9:40AM on 9-05-2007
I bought my iphone at ATT, and it was the biggest pain in my ass ever. If NOLA had an apple store I would have surly gone there instead.
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jonathan ober said 9:41AM on 9-05-2007
My AT&T store had a huge display that was actually visible from the street, barring rubber-necking and traffic accidents, it's still visible.
Anyways, I walked in, got to play with the demo unit which was running different commercials and how-tos. I had already used an iPhone from two friends and was already sold before I got to the store. I think that the best selling point right now are the people who actually have the iPhone and whip it out infront of friends, 'that's what she said', to use it. I have already 'sold' three people on getting one and I'm sure that if the price comes down sooner than later, more will adopt all things iPhone.
Now, if I could just rid of the useless Stock app, I'd be happy...seriously...I don't need it!
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TGunz said 9:41AM on 9-05-2007
.
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James said 9:42AM on 9-05-2007
The user experience is going to vary from store to store, especially with Apple branded products. Here in Louisville that has been the case with Best Buy and CompUSA stores. Although the latter has improved since the store within a store was installed. All this will change with the first Apple store opening this week.
I stopped into an AT&T store... the display was up, they had stock and I received excellent service. I didn't buy one yet, I'm still stuck in a T-Mobile contract.
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stainboy said 9:52AM on 9-05-2007
@Jonathan Allen: i don't know...i would say FEW AT&T stores have a live demo. there isn't a single one in my area that has any iPhones on display.
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Debbie Ripps said 9:47AM on 9-05-2007
I agree with this observation. I already own an iphone but I always check the AT&T stores when I see one. It is usually very difficult to find one. You have to know it's there and then try to locate a display or find information. It's not in line with the other phone to chose from. Wouldn't that be logical for ATT&T to present it along with the other phones it offers? That's not the case, from what I've observed. I have gone to a store where they had a whole display with a couple iPhones attached but it was in the back of the store and I had to look. If I was just in there looking at their line up of phones I wouldn't have spotted it. It puzzles me too!
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duscrom said 9:51AM on 9-05-2007
I think there are a couple reasons for this. 1. as mentioned before, if I go into an apple store, I'm going for Apple products. When the average customer goes to AT&T, they are probably more likely to be looking for those Free Phone offers, not a $500 phone.
Secondly, AT&T is the bearer of any bad news. Cause at the Apple store, they can just gloss over any negative AT&T stuff, or just claim ignorance. But at AT&T, you can ask about service coverage, contracts, deposits, and so on, and they have to answer. AT&T is what told me about the $600 deposit I had to pay to get an iPhone. Apple store.. they didn't have such info, so I'd have been more likely to walk out with one.
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Slevin said 10:52AM on 9-05-2007
"(whenever I see either, I always stop, trying to psych myself up enough to finally buy one)"
What's up with the comma "I always stop, trying..."
doesn't belong there. See wikipedia link
http://en.wikipedia.org/wiki/Comma_%28punctuation%29
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Luna Lovegood said 10:17AM on 9-05-2007
"Apple Stores outsold AT&T stores by a factor of seven to one. Is anyone surprised by that at all?"
Based on the comments thus far, no. But the question makes for a superbly lame blog post.
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Maimon Mons said 10:29AM on 9-05-2007
I went to a AT&T kiosk a couple weeks ago to buy an iphone. They didn't have the larger units available at all, and did not have a demo unit to have me play with. The guy there actually recommended that I go to the apple store in the mall.
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Jon said 10:51AM on 9-05-2007
It's also because (apologies to anyone reading this who works there; I'm sure there are exceptions) in my experience, AT&T has AWFUL customer support. The workers also get a commission per phone sold, unlike at the Apple store, so they're trying to get you to buy the one that they profit from the most, not the one that's best for you.
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Mitch said 10:38AM on 9-05-2007
@Luna Lovegood
I could not disagree more - I think this is a great topic for a TUAW post.
There has been so much speculation but very little actual facts about iPhone sales. Having something concrete to talk about is great.
The methodology used to come up with the estimated sales is definitely not 100% accurate, but props to Gene Munster for trying.
Regarding the various explanations as to why the AT&T store is selling fewer phones - remember this about total number of phones sold per store it is NOT a closing ratio (determining how many people visiting a store buy an iPhone).
I agree with Jonathan Ober - the thing that is going to drive a lot of sales is when people see iPhones being used in the real world. People are completely blown away after they see a demo of the iPhone.
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ryan said 10:39AM on 9-05-2007
I went to an AT&T store to take a look at an iPhone a few weeks ago and they had no display models. When I asked if I could actually see the phone before buying, they told me that if I wanted to demo one, I could pay $50 to get one and return it ($50 is the restocking fee). So, essentially I was offered the chance to demo the 600 dollar phone they wanted to sell me for a measly $50. What a steal!
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ryan said 10:43AM on 9-05-2007
Have you ever shopped at an ATT store? Their customer service is practically non-existent. That's why apple is outselling them. I only resort to going into the att store when I have no other option. Ours has a huge iphone display, but you have to put your name on a waiting list to talk to a sales associate. Last time I sat in the waiting area for 45 minutes before someone helped me upgrade my phone.
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Shig said 10:43AM on 9-05-2007
The AT&T stores here have the iPhones on display, slightly more prominently than their other phones. Of course, there isn't an Apple store within 300 miles of here. What's Louisville got that Tallahassee don't? Rassa frassa pissondis.
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Susan said 11:03AM on 9-05-2007
I had to buy my iPhone at an ATT store b/c I live in tech-less West Texas. My experience was not great. The saleslady was very much anti-Apple, and she complained the entire time about Apple's stranglehold on them--dictating how they could sell the phones, what plans customers could have, etc. Had I been less than absolutely sure I wanted an iPhone, she probably would've talked me out of it. Why isn't ATT selling more iPhones? Gosh, I can't imagine why.
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Dave said 11:30AM on 9-05-2007
3 things:
I would have bought my iPhone at an Apple store if I had one nearby. I bought my wife's from Apple online when she decided she needed one. My AT&T experience (on launch day) was fine.
You need to give in and get one. What's holding you back? Price? Refurbs from apple.com are now $100 less...
Slevin - read the line as if you were speaking it. You may be right that it doesn't need a comma, but what about a semi-colon? "(whenever I see either, I always stop; trying to psych myself up enough to finally buy one)"
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