Five year ago, some people thought Steve Jobs was crazy to open Apple-branded retail stores. I’m sure those people are ‘thinking different’ today. As usual, Apple’s managed to create a media frenzy over its snazzy new store in New York, and looking at the photos, it’s easy to get caught up in it even from here.
I figured the stores would work out well. The existing Apple resellers (especially in the US) were not doing the best job of reaching non-Mac users. If you found Macs at all, they were being ‘explained’ by the same 18 year old kid who was selling car stereos and washing machines two aisles over. Who better than Apple to tell the Apple story to the uninitiated? Besides, if Windows users had a chance to actually see and touch a Mac, they are much more likely to ultimately buy one.
The Minnesota Connection
But there was another reason I knew the stores would succeed…the guy who Steve chose to run them: Ron Johnson. Ron came from Target, where he helped them achieve their incredible success. It was obvious to me that Apple was serious about the stores if they they put someone like this in charge.
I met Ron shortly after he joined Apple and was surprised to learn we had two things in common: we were both from Minnesota, and we both commuted between Minnesota and Cupertino. (Most people don’t know it, but Minnesota is something of a retailing Mecca. The first enclosed shopping malls were here, the largest mall is here, and Target and Best Buy both started here and have their headquarters here.)
Product Manager Heaven
Until the first Apple store opened, the only places where you could find copies of my products, like DVD Studio Pro was online. Maybe, if you lived in New York or LA, you could find a very specialized dealer somewhere with one copy in stock, but otherwise you’d have to go to one of the mail order places. So imagine my delight when I made my first visit to an Apple store (the one in Beverly Center in Los Angeles) and encountered this…
DVD Studio Pro, in stock at the first Apple store!
I know…it’s a sight only a product manager could love. But it was a thrill for me.
Much has changed with the layout of the Apple stores since then, but they still stock all the good stuff that you just can’t get at other stores. Almost 150 stores later, it’s nice to know that if I’m in Manhattan and need a copy of Final Cut Studio at three in the morning, Apple will be there to help me.
It’s awesome to see how the market has changed since 1997 really. I have to (as an outsider) attribute it to Steve Jobs I feel as all the stats point in that direction. Obviously he has had a lot of help along the way and I can’t say he is a one man army but he sure seems to have made a difference.
From ideas to products to retail to support, Apple has come along way in the past 10 years. It’s great to see an example of how the first Apple store compares to the stores today and it’s even better to think that they were just as awesome in their day… They just pale in comparison now. This has to be a good sign.
I’d also like to add that I don’t think it’s just Product Managers that feel that way about such a sight; you should see my reaction to the presentation Theo Gray have at WWDC ‘05. It’s quite alarming.
Mike,
I look forward to reading your blog entries, they give me a little insight into the people that work for Apple and other companies that work with Apple.
But not this article, after the comment of “Afterall, the existing Apple resellers were doing an abysmal job of it”. I am Apple reseller in Australia and I think that remark is unfounded and unnecessary. Australia was ranked 5th in the world with total amount of iPods sold in 2004. Australian market share of Apple computers had increased nearly 1% per quarter last year. Were these efforts because of Apple advertising and or Apple owned stores in Australia? I can definitely say NO. Apple only advertised iPods AFTER Australian resellers did such a good job and we don’t have Apple owned stores.
Now Apple is wanting to open Apple owned stores in Australia which will cut into existing market share, further reducing the resellers’ share. Apple will be able to put a store anywhere in any of the major cities across Australia, but if you are a reseller wanting to open a store, Apple has said the market is already flooded in the city areas. Apple has got the financial backing to cripple Australian resellers. Are you saying that resellers around the world should give their customer base to Apple on a silver platter, because resellers’ efforts are “abysmal”?
Ian – you make some good points, and I’ve edited the article to reflect them. Thanks!
Of course, the fundamental question remains unanswered: is it right/fair/good for Apple to open stores in areas where it will clearly harm existing resellers who are doing a good job? I’d like to see Apple create a sort of ‘franchise’ program where existing resellers could become independently owed Apple stores. Much like McDonald’s has franchise stores and company-owned stores.
I think what really killed apple’s progress of the 80’s and early 90’s was Apple making mom & pop stores sell more than $150,000 worth of computers. I remember there being a mac store in many smaller cities. They were just pushed out and all of the smaller town’s stores just couldn’t compete. There still isn’t anything in Duluth, MN now. There are like 4 apple stores now in the st.paul/mpls area, but none up here. None in St. Cloud. None anywhere near in wisconsin.
Apple introduced their retail problems. Best Buy and CompUSA were not the solutions, they were very late market plays to get product in stores.
Of course they won’t sell apples that they know nothing about.
mevdev – Hi up there in Duluth…one of my favorite towns! It’s a bummer about the lack of stores that sell Macs. I’m guessing that Apple has just figured that the big mail order guys (Macconnection, MacMall, MacWarehouse) would take care of the smaller towns. It’s been that way for years.
Hi.Mike, the building is fantastic, the design is fantastic. It looks much much better than the one in London. I definitely will shopping there sometime. It’s really……awesome!!
I think you’re dead on, I remember going into stores in Boston and seeing macs on shelves, dead in the water, in stores like “Computer City”.
Boston’s Apple resellers were a real mixed bag. When MicroCenter came to town, they were notable for actually having a decent Mac department, and staff that listened to issues like Mac SW mixed in with Win SW (”Hybrid? Doesn’t that mean ‘Winders’?!”).
Mind you, I work at an Apple Specialist who is getting an Apple Flagship Store dropped less than 50′ out our back door.
We’re actually psyched, but then; we’re crazy, anyways.
We need a store in France, where I lived and one in Israel where I live now…
Once again, Apple DID it ! no other…