Earlier this month, we reported on several changes at Apple retail stores that were reportedly seeing some employees being laid off or seeing recent promotions being retracted, while other part-time employees were seeing their hours reduced significantly, in some cases to zero. Our report was followed several days later by an acknowledgement from Apple that the company had "messed up" in adjusting its staffing formulas for its retail stores.
ifoAppleStore now takes a close look at the situation, tying changes in the philosophy of Apple's retail experience to the passing of Steve Jobs and the operational focus of Apple CEO Tim Cook and new retail chief John Browett. At the most basic level, Jobs served as the champion for former retail chief Ron Johnson's vision of Apple stores focused on consumer satisfaction, and without Jobs to protect that vision Apple has slipped into a numbers-focused perspective for its retail operations.
Johnson was champion of customer satisfaction, designing and staffing the stores to provide a superior experience for visitors and buyers alike. He was able to win over Steve Jobs with the concept that revenue and profit should be a secondary goal of Apple’s retail stores.
But in 2009, Jobs took six months of medical leave and put Tim Cook in charge of the company, including the retail stores. Cook is primarily an “operations guy,” sources explain, and his natural focus is revenues and profits, not customers. While Jobs was away, Cook and chief financial officer Peter Oppenheimer began to confront Johnson on his customer-centric retail philosophy—both felt the stores didn’t generate enough revenues to justify operating expenses.
The report claims that Cook hired Browett to replace Johnson, who departed Apple to lead department store chain JC Penney last year, specifically because of his focus on "traditional concepts of retailing" that prioritize revenues and profits as the key performance metrics.
Tim Cook (left) and John Browett (right)
Even with Apple reportedly having reversed a number of the staffing changes that brought the company such significant publicity earlier this month, stores are reportedly still subject to directives reducing workshop offerings for customers and specifying policies on staff evaluation and compensation that prioritize profits over the customer experience and employee satisfaction.
Wednesday March 12, 2025 6:05 am PDT by Joe Rossignol
The upcoming iOS 18.4 update for the iPhone includes a smaller but meaningful improvement for Apple's in-car iPhone mirroring system CarPlay.
Specifically, CarPlay now shows a third row of icons, up from two rows previously. However, this change is only visible in vehicles with a larger center display. For example, a MacRumors Forums member noticed the change in a Toyota Tundra with a...
Wednesday March 12, 2025 7:39 pm PDT by Joe Rossignol
Daring Fireball's John Gruber today shared some strongly-worded comments about Apple's delayed personalized Siri features. Gruber is a well-known Apple pundit who has been writing about the company for more than two decades.
In a blog post titled "Something Is Rotten in the State of Cupertino," Gruber said Apple's credibility has been "damaged" by the delay:Keynote by keynote, product by...
Tuesday March 11, 2025 3:26 am PDT by Tim Hardwick
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for.
Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
Wednesday March 12, 2025 1:05 pm PDT by Joe Rossignol
iPhones are finally getting a much-requested setting, but availability is limited.
The upcoming iOS 18.4 update introduces an option to set a default navigation app, other than Apple Maps, but unfortunately this new setting is limited to users in the EU. There, you can now set an app like Google Maps or Waze as your default navigation app on the iPhone by opening the Settings app and tapping ...
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...
Thursday March 13, 2025 3:07 am PDT by Tim Hardwick
Apple's upcoming iPhone 17 Pro models are expected to feature a significant design overhaul, and a new image apparently taken on an assembly line for the unreleased devices appears to confirm the biggest rumored change.
Render of an iPhone 17 Pro model shared by Jon Prosser
The iPhone 17 Pro and iPhone 17 Pro Max are rumored to adopt a horizontal camera bar reminiscent of Google's Pixel...
Apple is planning for a major design overhaul of the iPhone, iPad, and Mac interfaces with the introduction of iOS 19, iPadOS 19, and macOS 16 later this year, reports Bloomberg. The update will "fundamentally change" the look of Apple's operating system, introducing a more consistent cross-platform experience.
Apple plans to update the style of icons, menus, apps, windows, and system...
Thursday March 13, 2025 9:32 am PDT by Juli Clover
The Apple Intelligence features that Apple introduced with iOS 18 are not pushing people to upgrade their iPhones, Apple analyst Ming-Chi Kuo reiterated today. Apple's recent Siri failures are also going to have an impact on 2025 iPhone shipments, which the market is beginning to realize.
As early as last July, Kuo said expectations that Apple Intelligence could drive iPhone upgrades were...
Thursday March 13, 2025 4:02 pm PDT by Juli Clover
Apple made a major misstep with the way that it handled the delay of Apple Intelligence features for Siri, Apple analyst Ming-Chi Kuo said today. Announcing the delay through a press statement was a bad decision, and Apple should instead have gone through official channels.
Kuo referenced the well-known "Antennagate" PR crisis when the iPhone 4 launched in 2010, and the way that then Apple...
I appreciate all that Cook has done for the employees, but I will be the first to say that meeting these numbers/profits is not going to bode well for them.
I don't understand the world of business. If your primary goal becomes meeting quotas and percentiles rather than customer satisfaction, how do you ever expect to be a respectable business?
You can make all the beautiful, respectable things in the world.
But if you don't have heart, you don't have anything.
And here we are.... the start of $ is more important than the customer experience :). Won't be long before there will be justification of a cheaper crappier product to save $....
This totally makes sense as Apple is struggling to make a profit. Give me a break. Glass cubes, giant stores in Grand Central Station, and architectural innovating buildings is not the way you go to maximize profits, and thats not the point of these highly successful retail outlets. Its shock and awe, its getting the products into the hands of consumers so they can "play" with them. To do this is to understand why Apple products are so successful. Nickeling and dimeing consumers is the surest way Apple can shoot themselves in the foot.
Tim, your consumers made Apple the biggest company in the world, and we fight the good fight for you all over the internet (there are no fans like Apple fans) but if you even give off the appearance that you are trying to increase your already sky high profits, then you risk it all sir. You should fire this douche Browett and quit worrying about retail stores profits. Their job is to showcase... obviously the profits will come.
I worked retail for 35 years before retiring in 2009. Everything I read and everything in my customer service "gut" tells me that Browett is the wrong person to head Apple retail.
Earlier this month, we reported on several changes at Apple retail stores that were reportedly seeing some employees being laid off or seeing recent promotions being retracted, while other part-time employees were seeing their hours reduced significantly, in some cases to zero. Our report was followed several days later by an acknowledgement from Apple that the company had "messed up" in adjusting its staffing formulas for its retail stores.
