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 December 11, 2024 5:23 am PST by Joe Rossignol
Apple has announced that iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2 will be released today following more than six weeks of beta testing.
For the iPhone 15 Pro and iPhone 16 models, the update introduces additional Apple Intelligence features, including Genmoji for creating custom emoji, Image Playground and Image Wand for generating images, and ChatGPT integration for Siri. There is also ...
Thursday December 12, 2024 4:36 am PST by Tim Hardwick
Next year's iPhone 17 Pro models will reportedly feature a major redesign, specifically centering around changes to the rear camera module, and now new supply chain information appears to confirm the striking change, according to a Chinese leaker.
iPhone 17 Pro concept render
Late last month, The Information's Wayne Ma claimed that the rear of the iPhone 17 Pro and iPhone 17 Pro...
Developers now have access to cloud-based M4 and M4 Pro Mac mini units via MacWeb, a Silicon Valley-based provider of cloud services.
The company has launched three configurations of the new Mac mini, powered by Apple's M4 and M4 Pro chips. Developers and IT teams can rent these machines for tasks ranging from basic development to advanced artificial intelligence modeling, providing an...
Wednesday December 11, 2024 10:02 am PST by Juli Clover
Apple today released macOS Sequoia 15.2, the second update to the macOS Sequoia operating system that was released in September. macOS Sequoia 15.2 comes over a month after the release of macOS Sequoia 15.1.
Mac users can download the macOS Sequoia update through the Software Update section of System Settings.
macOS Sequoia 15.2 adds Image Playground, an app that lets you create...
Wednesday December 11, 2024 10:03 am PST by Juli Clover
Apple today released iOS 18.2 and iPadOS 18.2, the second major updates to the iOS 18 and iPadOS 18 updates that came out in September. The new updates come over a month after Apple released iOS 18.1 and iPadOS 18.1.
Subscribe to the MacRumors YouTube channel for more videos.
The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General >...
Wednesday December 11, 2024 10:54 am PST by Juli Clover
Apple today made a mistake with its macOS Sequoia 15.2 update, releasing the software for two Macs that have yet to be launched. There is a software file for "Mac16,12" and "Mac16,13," which are upcoming MacBook Air models.
The leaked software references the "MacBook Air (13-inch, M4, 2025)" and the "MacBook Air (15-inch, M4, 2025)," confirming that new M4 MacBook Air models are in...
Monday December 9, 2024 10:06 am PST by Juli Clover
Apple today seeded the second release candidate versions of upcoming iOS 18.2, iPadOS 18.2, and macOS 15.2 updates to developers and public beta testers for testing purposes, a week after releasing the first RCs. The first iOS 18.2 RC had a build number of 22C150, while the second RC's build number is 22C151. Release candidates represent the final version of beta software that's expected to see a ...
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.
