<![CDATA[Gawker: valleywag, retail]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, retail]]> http://gawker.com/tag/valleywag/retail http://gawker.com/tag/valleywag/retail <![CDATA[Mac blogger makes getting a job at Apple look easy]]> Aviv Hadar, who writes about Apple at MacBlogz.com, got curious about how one joined Steve Jobs's elite priesthood — so he applied for a gig at the local Apple Store, and landed it. The interview process was revealing: According to the manager Hadar talked to, most of his current staff couldn't pass a test with 20 basic technical questions about Apple hardware and software. Some Geniuses! But Apple had set itself up for exactly this kind of comeuppance the day it labeled its stores' repair department the "Genius Bar." Here's the offer letter Hadar got:

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<![CDATA[Report: Best Buy won't profit selling iPhones]]> Best Buy will begin selling Apple iPhones this September, but it won't make much or any money at all doing so, according to retail analyst Colin McGranahan, who writes in a not the chain won't markup the phone more than $50 if at all. So why's Best Buy doing it? One, to sell higher-margin accessories like iPhone cases and speakers. Two, iPhone buyers are the kind of customers Best Buy wants to see more of in its stores — wealthy, and happily swayed by good marketing into buying the lastest shiny new objects.

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<![CDATA[Most iPhones not sold at Apple Stores]]> Hidden in the math of a Fortune summary of a report from investment bank Piper Jaffray: Apple Store sales only account for 2 of every 5 iPhones sold. AT&T stores sell one in five, and overseas phone stores sell the other 2. Using Piper Jaffray's estimates, you can summarize sales for the upcoming Xmas-gift-driven last quarter of the year as: 2 million through Apple's own stores, 1 million through AT&T, and 2 million elsewhere in the world. Then factor in your Best Buy prediction. What I want to know: What's 2 million times the average wait time in an iPhone line? (Chart by Piper Jaffray)

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<![CDATA[Best Buy agrees to sell iPhone]]> Electronics retailer Best Buy will begin selling Apple's iPhone 3G next month. Until now, only Apple Stores and AT&T outlets carried the phone. Like Apple Store customers, Best Buy shoppers must sign a two-year AT&T contract to leave the store with an iPhone. [WSJ]

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<![CDATA[Apple's secret to selling iPhones: Windows Mobile]]> After a rocky iPhone 3G launch, Apple's store operations have returned to a model of efficiency. One of Steve Jobs's secrets: roving sales clerks who use mobile devices to ring up orders anywhere in the store, not just at the cash register. Ah, but which devices? Motorola MC75 handhelds running Microsoft's Windows Mobile operating system.

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<![CDATA[iPhone day 18: Steve says to tell you we're sorry]]> LiveJournaler akil writes of a recent visit to the Apple Store, where a new, streamlined process for iPhone buying was in effect: "They started prequalifying people at 6:30 a.m. Within three minutes of arriving, I was given a serialized tag that is linked to an actual iPhone and I'm guaranteed to get one." Separately, an Apple employee who gives his name only as "David G." says Steve has asked him to post regularly on the status of Apple's buggy MobileMe service. (Photo by akil)

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<![CDATA[iPhone, day 11: But it was on the Internet, dammit]]>

From a would-be iPhone 3G buyer in San Francisco:

Date: Jul 18, 2008 9:00 PM
Subject: apple store can kiss my ass

so i go to the chestnut street apple store at 10am this morning and they tell me they are sold out of 3g iphones after i checked their website last night. i'm like, how did you sell out at 10:01 am? and they said, we've been open for an hour! eh? their phone and website clearly details they open at 10am. wtf is going on? i felt like slaughtering them.

(Photo by Alex Choi)

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<![CDATA[Downtown San Francisco no longer capable of supporting three Starbucks per intersection]]> Next year's Macworld may be the last chance to make a shamefaced Starbucks run to the mall-kiosk latte dispenser in the Metreon. Why did the Seattle coffee monoculturist give six months' notice of that coffee-bar's closure, and 599 others? Why, to retrain loyalists on other locations within footsteps. We already know that you drink only at establishments where the coffee pickers are unionized, graduate-degreed, and constantly hugged. And so do we. But here's our map of the remaining South of Market Starbucks — and all the Blue Bottle locations — anyway. Only to show to your sleep-addled board members when they visit for a meeting.


View Larger Map

(Photo by Davity Dave)

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<![CDATA[iPhone day 7: Store getting remodeled, but lines still long]]>

A tipster snapped this late-night shot of Apple's Union Square store being overhauled. You — yes, you waiting in line with your old iPhone — send us photos of the results when the store opens at 10, willya? Separately, we've been told that Apple Store employees at the San Francisco flagship cut off would-be buyers who arrived after 5:30 p.m. Shoppers timed the morning line at 2.5 hours yesterday. That's even more time than I spend watching my BlackBerry reboot.

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<![CDATA[Apple's weekend profits for the iPhone 3G: $330 million]]> Apple profited some $330 million from 3G iPhone sales over its first weekend, Fortune's Philip Elmer-DeWitt estimates that . His back-of-the-envelope formula factored in iSuppli's estimate of the manufacturing costs of each iPhone 3G, Apple's numbers on how many iPhones it sold over the weekend, analyst estimates on how much AT&T and other carriers subsidize each phone, and what a survey says about the sales split between the iPhone's $199 and $299 iPhones models. All that, a little bit slower now, in Elmer-DeWitt's bullet points below.

  • At least 1 million iPhones sold over the first weekend (Apple)
  • Cost to Apple: $174.33 parts plus $50 royalties for 8GB model; $16 more for 16GB model (iSuppli)
  • Cost to consumers: $199 (8GB), $299 (16GB) (Apple)
  • Cost to carriers: conservatively, $499 (8GB), $599 (16GB) (iSuppli)
  • Profit per phone: $274.67 (8GB) and $358.67 (16GB)
  • Models sold: 33% (8GB), 66% (16GB) (Piper Jaffray survey)
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<![CDATA[NJ Mall AT&T Resellers Hand Out Anti-iPhone Propaganda to Customers]]> It looks like not everyone in AT&T land loves the iPhone. When reader Dennis' mom went to the AT&T stand in the Moorestown Mall in New Jersey to ask about iPhone insurance, they laughed in her face. They then handed her a bunch of articles written arguing for the BlackBerry over the iPhone, printed from places like Crackberry.com and Pocket PC Magazine. At the end, there was the name and number of an AT&T regional manager.

Nice. I called the manager whose name is listed at the bottom of the documents, and he told me that he had emailed the articles to his employees but in no way intended for them to copy them and hand them out to customers. Instead, they were meant to be used as talking points for getting sales in stores where the iPhone wasn't available.

It's understandable for a retail operation to try to get sales when what the customer came in for isn't available. What's less understandable is laughing at customers and handing this kind of thing out to try to discourage them from buying their carrier's flagship phone.

If there's anything that we can learn from this, it's this: AT&T won't ever have the unified face that Apple store employees do if they're going to have third party stands with third party phone lineups. Also, don't buy phones from stands in malls in New Jersey.

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<![CDATA[What Apple can learn from McDonald's]]> [Editor's note: Tim Woolery, aka Tim the IT Guy, works hands-on in IT in the Bay Area. With nearly 15 years' experience at everything from CAT 5-cabled steel furnaces to intercontinental remote-controlled radio stations, Tim's able to spot and plug holes in the coverage of important tech news. Rather than bone up on change management best practices ourselves, we decided to let Tim post for himself once a week.]

TIM THE IT GUY — Even an Apple Store employee called Friday's iPhone launch "Not very Apple-like". It would've been a lot shinier had Apple stuck to releasing only one complicated product at a time. But no, some marketing whiz decided to debut an all-new phone and upgrade the old phones on the same day. On top of that, Apple unveiled an applications store and also forced users of Apple's $99-a-year online email and sync .Mac accounts to self-migrate to a completely different platform — whether or not they were buying an iPhone. Here's why compared to previous Apple launches, Friday was one big mistake:

Unike most Apple products, none of Friday's new toys were simple retail boxes to be sold over the counter. Each required its own special technical prep -– carrier activation, a software upgrade, or a self-migration process. Apple failed Change Management 101: They scheduled too many logistics and IT changes for the same day, with each change performed before anxious customers' eyes. Any one of Friday's problems would've been defendable on its own. Instead, it seemed as if Apple were trying to disable as many customers as possible.

You never go into McDonald's and find they've got a new burger, plus an upgrade to the Quarter Pounder, plus a whole new kind of sugary drink all debuting on the same day. Mickey D's sticks to one rollout risk at a time, and lets everyone else get their Big Mac as usual. That's what added insult to injury: Apple's stores, nearly empty because they could handle only a few iPhone buyers at a time, were closed to customers who'd come to buy a laptop.

When the next-generation iPhone comes out, I hope they put aside the other new goodies for later. Release one change per week as a separate launch. That's what's frustrating: Friday's four-way fiasco could have been a month's worth of buzz.

(Photoillustration by Jackson West)

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<![CDATA[First guy in New York iPhone 3G line scores a date with hot Apple employee]]> NEW YORK — I'm sitting outside the Fifth Avenue Apple Store here in New York, writing up a post about the long line for the iPhone, when a pretty girl wearing aviator sunglasses and a white blouse sits next to the guy sitting next to me. She says to her friend: "So I've got a date with Dan." "Who?" the guy asks. "The guy who was first in line — the guy who bought the first iPhone today. He's doing the documentary thing, his name is Dan."

I hear this and it sounds familiar; A group of vegan activists began waiting in line a few days ago as a demonstration. The cute girl goes on: "Anyway, they all own Apple stock and he taught English in Japan for four years. He's a nut, but I like nuts." The guy: "You could do much better." People who wait hours in line for a phone: Odd. People who wait days in line for a phone, hitting on a cute Apple Store employee the whole time, eventually asking her out and getting a date for next Tuesday: Not so odd. Actually: kind of heroic.

Update: We have names and video. She's Teresa Wlasiuk and he's Daniel Bowman Simon. Here's how it went down (doesn't her giggle give it all away?):

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<![CDATA[Microsoft starts selling Office subscriptions through Circuit City]]> Microsoft can't convince customers that they need the new version of Office anymore, so they'e begun to sell it as software-as-a-service, bundled with security software. "Security is basically the No. 1 thing that gets attached with a PC," said Microsoft group product manager Bryson Gordon. The product, code-named "Albany" and now known as Equipt, will cost PC buyers an extra $20 a year over the $49 per year price Microsoft charges for its OneCare antivirus software. Why don't they just let users download the software? That might seem easier, but retailers like Circuit City move a lot of Xboxes and Windows PCs, and the software giant can't afford to leave them grounded as computing moves to the cloud.

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<![CDATA[Microsoft to open retail stores?]]> The list of computer companies with failed retail initiatives includes a lot of big names: Sony, Dell, and Gateway, for starters. Only one company, Apple, has beaten the odds. Now Microsoft, which tried and failed with one retail store in San Francisco a decade ago, is rumored to be tiptoeing into the retail waters again. Fudzilla, a rumor site, claims Microsoft will open "many" retail shops dedicated to Microsoft products. The aim of the stores would be to show the "true Microsoft experience." What, random crashes of the cash register during checkout and multiple identity checks before being allowed into the store? This can't end well. A Microsoft spokesperson offered the standard noncomment, which may be wise; if the retail push is for real, I wouldn't want to try and pitch it to the press, either.

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<![CDATA[Apple hires 3,500 new retail zombies]]> Apple's retail staff increased 44 percent from September 2007 to December 2007. Over the past two years, the retail division's staff numbers have risen between 2 and 15 percent per quarter. The company now has 11,400 "equivalent" full-time retail positions. At this year's shareholder meeting, head of Apple Retail Ron Johnson pegged the number of retail employees at 15,000, indicating that a huge percentage of them are considered "part-time."

As a former Apple Retail employee, this jibes with what I experienced. At my store, there were only a few full-time employees and most of us were part-time — mostly so Apple wouldn't have to pay us any benefits. That's right: Steve Jobs is a cheapskate. Even Starbucks gives part-time baristas health insurance. At least I got a discount — and a free iPod. Who needs healthcare?

(Photo by AP/Elise Amendola)

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<![CDATA[Cosmo's new man-catching hot spot to open up in Pebble Beach]]> Apple Store HottiesApple will open a new retail store in Pebble Beach, a tipster tells us. He spotted "help wanted" signs. Julia Allisons of the world, mark it down as another place to find your Kevin Rose. According to Cosmopolitan, Apple Stores are ideal places to "check your email among cuties, take a free workshop on anything from Photoshop to podcasting (a great opportunity to strike up a conversation), or just survey the, ahem, good-looking merchandise." We've heard Apple Stores aren't a bad spot for whale watching, either. (Photo by laffy4k)

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<![CDATA[Best Buy caught engaging in act of capitalism]]> Sales clerks at a number of TV retailers in Massachusetts gave inaccurate information regarding the upcoming analog-to-digital television conversion. Imagine that: Sales clerks giving inaccurate information! The switch will require users of older televisions to purchase a basic set-top box partially subsidized by the government, but does not require viewers to buy a new TV. Eric Bourassa, a consumer advocate with MassPIRG, which commissioned the study, says "retailers should do a better job training their staff so that going forward, consumers that go into the stores can get the right information."

Or perhaps consumers should inform themselves about how they're spending their money. Best Buy is in the business of making money, not providing higher education to those who barely made it through grammar school. They aren't required to tell you that Amazon.com will sell you the exact same TV for cheaper, either. Would you expect a clerk making $9 an hour to give you detailed information about your legal rights? Would you expect them to even understand the subject? Why doesn't MassPIRG just raise money to mail free set-top boxes to everyone in the state? That seems easier. (Photo by AP/Ng Han Guan)

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<![CDATA[Wal-Mart crowns Blu-ray the disc that matters]]> The high-definition disc battle is over, and Blu-ray has won. We can now move on to more productive matters. Why am I declaring victory? Not because of Warner's switch to the format, and certainly not because of Netflix's. Retailing is not a democracy. There is one vote that matters. No, it's not the consumer's — it's Wal-Mart's. And Wal-Mart, formerly an HD-DVD advocate, is going Blu. Walmart.com currently has its sole HD-DVD player model on clearance, and by June, it will only sell Blu-ray players and discs. Next format war, please.

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<![CDATA[Worst January in 40 years for brick-and-mortar retailers]]> Wal-Mart.jpgU.S. retail sales in January 2007 grew only 0.5 percent over the previous year. This is nigh unto a national disaster, if you ask the International Council of Shopping Centers. For the love of God, people, if you don't go to the mall, the terrorists will have won. It was the worst January since 1969 — and we all know what happened in 1968.

The Internet, thankfully, remained untouched by this shopping apocalypse. Online advertising behemoths Google and Microsoft say they haven't felt an oncoming recession at all. And even if there was one coming, Google cofounder Sergey Brin told analysts last week that Google would actually thrive in such a consumer belt-tightening environment. In hard times, consumers look for the best deals, and Google search provides them. Who does he expect to buy ads for "beans and rice" searches? Brin did not elaborate.

Going by Brin's theory, Wal-Mart should have done gangbusters. But no. The penny-pincher's paradise actually fared worse than most, growing 0.2 percent year over year.

(Photo by Cryostasis)

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