Results 1 to 18 of 18
  1.    #1  
    News broke today that the 5th Avenue Apple store pulled in $440 million dollars last year - just one store. Now, many fine words have been written about the efficiency and quality of Apple's retail stores - and I will not try and imitate them.

    What I will try and do is outline why I believe Palm should take the time to invest in its own line of retail stores.

    1) There are two ways to define a brand - theoretically (with media marketing - ads etc) and physically, with a retail presence. A retail presence modelled on Apple's would allow consumers who have more or less forgotten about Palm to get to know the company and its products again.

    2) When a customer walks into a Sprint store, its employees will only have been given a couple of days of less than intensive training. They simply won't be able to sell the Pre (and future webOS devices) with the zeal and knowledge that Apple employees do for the iPhone.

    3) It would encourage brand loyalty. Customers are fickle, and one of the best ways Apple has developed of retaining customers is through the 'Genius Bar' - Apple customers are safe in the knowledge that they don't have to rely on the carrier's customer service, but Apple's. Palm should try and mimic this, in order to get repeat business.

    4) Accessory sales. Sprint won't really make much money out of selling the device - they make money out of the plan and out of accessories. If Palm sold the accessories, then they would be selling them at cost price, and the economics would be even more feasible.

    5) Centralising the brand. This will be even more important when future webOS devices are launched, and when numerous carriers sell different phones. Palm wants to be Apple (broadly speaking) - and one good way of doing this would be to maintain a customer facing retail front.

    Now, I understand that this might take a while, because Palm's probably pretty strapped for cash right now. However, I'm sure they could roll this out slowly, starting out in major cities.
    UK boy born and bred, usually proud of this, but rueing the fact that I won't be able to get my greasy mitts on one of these for months longer...
  2. #2  
    Palm had stores for a while. It's pretty hard for retail stores to make a profit--there's a lot of overhead involved in the physical location plus the employees. Apple has a lot of products to sell so it works for them. Even so, I'm not sure that on a whole their retail stores generate a profit (though some stores might). Palm would need a lot more products moving a lot more volume in order for this to work. Otherwise it's better for them to stick with Best Buy and other retailers (in addition to the phone stores).
    Palm III-->Handspring Visor-->Sony Clie PEG-NR70-->no PDA -->Palm Treo 755p-->Palm Pre-->HP Veer
  3. #3  
    Quote Originally Posted by northy014 View Post
    News broke today that the 5th Avenue Apple store pulled in $440 million dollars last year - just one store. Now, many fine words have been written about the efficiency and quality of Apple's retail stores - and I will not try and imitate them.

    What I will try and do is outline why I believe Palm should take the time to invest in its own line of retail stores.

    1) There are two ways to define a brand - theoretically (with media marketing - ads etc) and physically, with a retail presence. A retail presence modelled on Apple's would allow consumers who have more or less forgotten about Palm to get to know the company and its products again.

    2) When a customer walks into a Sprint store, its employees will only have been given a couple of days of less than intensive training. They simply won't be able to sell the Pre (and future webOS devices) with the zeal and knowledge that Apple employees do for the iPhone.

    3) It would encourage brand loyalty. Customers are fickle, and one of the best ways Apple has developed of retaining customers is through the 'Genius Bar' - Apple customers are safe in the knowledge that they don't have to rely on the carrier's customer service, but Apple's. Palm should try and mimic this, in order to get repeat business.

    4) Accessory sales. Sprint won't really make much money out of selling the device - they make money out of the plan and out of accessories. If Palm sold the accessories, then they would be selling them at cost price, and the economics would be even more feasible.

    5) Centralising the brand. This will be even more important when future webOS devices are launched, and when numerous carriers sell different phones. Palm wants to be Apple (broadly speaking) - and one good way of doing this would be to maintain a customer facing retail front.

    Now, I understand that this might take a while, because Palm's probably pretty strapped for cash right now. However, I'm sure they could roll this out slowly, starting out in major cities.
    Apple sells computers, mp3 players, phones, software, etc... in theier stores.

    Palm does not have the product portfolio to support a dedicated retail presence.

    Seriously, the store would have 3 products in it, centro, pre and treo pro. Hardly a store.
  4.    #4  
    Quote Originally Posted by NoRemorse View Post
    Apple sells computers, mp3 players, phones, software, etc... in theier stores.

    Palm does not have the product portfolio to support a dedicated retail presence.

    Seriously, the store would have 3 products in it, centro, pre and treo pro. Hardly a store.
    That's why I didn't suggest they started immediately. I would wait until they had rolled out their entire line of webOS phones, perhaps even in a couple of years. Also, it's my belief that Palm will launch a range of business handsets, and these could have a place too.

    To the guy above, Apple's retail stores account for $4.5bn sales, and just under $900m profit last time I checked, which isn't bad...

    Also, many phone companies have stores, e.g. Nokia, Samsung etc.

    I agree though, they might need some more products. webOS netbook anyone?
    UK boy born and bred, usually proud of this, but rueing the fact that I won't be able to get my greasy mitts on one of these for months longer...
  5. #5  
    Quote Originally Posted by northy014 View Post
    To the guy above, Apple's retail stores account for $4.5bn sales, and just under $900m profit last time I checked, which isn't bad...
    I'm skeptical. Are you sure that doesn't include online sales? Do you have a source for that?
    Palm III-->Handspring Visor-->Sony Clie PEG-NR70-->no PDA -->Palm Treo 755p-->Palm Pre-->HP Veer
  6. #6  
    Have you got the news item for that claim?
    $440m would be about 1% of total Apple sales.
  7.    #7  
    I just checked again, and my figures were actually for a couple years ago:

    "According to Apple, its retail store sales globally were about $6.32 billion in FY2008 with an “average of 211 stores” open in 2008. This could be misleading. The practice in retail is to measure results by same store sales, because it is the only way to determine — apologies for the pun — apples-to-apples comparison. However, this is what we’ve got. That gives an average revenue of $29.9 million per location." LINK.

    I can't find a profit margin for 2008, to be honest I'm not looking that hard, but Apple makes a 30% margin on all its hardware, so figure after overheads a minimum of 20%, that's $1.3bn.
    UK boy born and bred, usually proud of this, but rueing the fact that I won't be able to get my greasy mitts on one of these for months longer...
  8. #8  
    I stand corrected. Those are some pretty amazing numbers.
    Palm III-->Handspring Visor-->Sony Clie PEG-NR70-->no PDA -->Palm Treo 755p-->Palm Pre-->HP Veer
  9. #9  
    Retail market is cut throat and most of it unless its the high end retailers is VOLUME VOLUME. There are numerous overheads not alone rental prices that tie you in for years.

    A lot of high streets in the UK look like ghost towns as house prices went up so did land prices and therfore retail leases sky rocketed forcing many businesses to close.

    Apple is unique -it has a large following and premium prices.
  10. #10  
    Palm's own website would make a great distribution channel. But did they leave all the selling to carriers?
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  11. joelpalm
    joelpalm's Avatar
    #11  
    Apple has the product line to support this, Palm does not.

    /thread
  12. TazUk's Avatar
    Posts
    689 Posts
    Global Posts
    719 Global Posts
    #12  
    Most mobile phones are sold through the carriers so I can't see much need for dedicated Palm stores.
  13.    #13  
    Quote Originally Posted by joelpalm View Post
    /thread
    That's a little presumptuous wouldn't you say... Many phone manufacturers seem to justify it.
    UK boy born and bred, usually proud of this, but rueing the fact that I won't be able to get my greasy mitts on one of these for months longer...
  14. #14  
    I agree, having a Palm store would be super cool... They could start with just small kiosks in some major malls in all the big cities and work their way up from there.

    I would much rather visit a Palm store and talk to someone that knows all about Palm products, instead of the usual braindead types that staff big-box electronic stores or even carrier-owned stores.
  15. #15  
    I can't think of a single phone manufacturer specific store in my area, and I don't live in a small town, either. I'm in the greater DC area. I really don't think Apple could make a go odf the stores if they only sold phones there. Not only does Apple sell iPods and computers, and accessories for them, they sell all those things at premium prices.
    Bob Meyer
    I'm out of my mind. But feel free to leave a message.
  16. #16  
    Palm had stores up until a year or two ago. I used to pass the one in DC's Union Station every week. They were way too expensive to maintain when the brand started to lose its luster and shut down not too long after the Foleo debacle. It seems like something they may fire up again sometime but I would imagine it's expensive to run the stores and not worth it right now as they work to build themselves back up.
  17. #17  
    BlackBerry has explored this route of having their own stores. They've opened up one or two as trials and the jury is still out.

    There are several benefits of not having your own stores.

    1. Less need to support the devices. The carrier sells 'em, the carrier supports 'em.
    2. Less cost with the carrier(s) selling vs. running your own store.
    3. Less cost with advertising as the carriers do a lot of the work for you.

    Given Palm's financial status right now I bet the lower cost option looks real good.

    And finally, Palm has the Palm.com site for sales (and support), so they do have a distribution channel of their own, just not a physical one. Hey, it's the 21st century. It's all about net presence!
  18. #18  
    not practical. not feasible.

Posting Permissions