Apple Retail's Effort to Boost Share of U.S. iPhone Sales Starts Paying Dividends

Over the course of the last several months, Apple has improved its in-store iPhone sales, according to a new survey from Consumer Intelligence Research Partners (via AllThingsD). Approximately 25 percent of iPhones are purchased within an Apple Store, up from an estimate of 20 percent earlier this year.

The majority of iPhones in the United States are still sold through carriers, however, with AT&T responsible for 21 percent of sales and Verizon responsible for 18 percent. Best Buy's iPhone sales accounted for 13 percent of total sales, and Sprint, Amazon, and other mass retailers like Target, Walmart, and Costco accounted for 5 percent each.

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Carriers also sell the most overall cell phones, but Apple, though it only sells the iPhone, accounts for a total of 11 percent of all retail phone sales.

Back in July, Apple CEO Tim Cook told employees that he would like to improve Apple Store iPhone sales with new promotional tactics. According to Cook, the iPhone is Apple's central "gateway product" to other devices like iPads, which makes it vital that users purchase their iPhones where they can be exposed to other Apple products.

To encourage sales within Apple retail locations, Apple has launched new features for its Apple Store app, including an iPad version, and debuted an in-store trade-in program in August with the goal of improving the company's U.S. sales numbers.

Though Apple has seen slight improvements in in-store iPhone sales, further increasing iPhone sales within Apple Stores remains an uphill battle as Apple has roughly 250 retail stores in the United States that compete with more than 10,000 third-party retail outlets that offer the iPhone.

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Top Rated Comments

mbh Avatar
139 months ago
Not really sure why it matters if an iPhone is sold directly by Apple Retail or through a carrier like Sprint. In both cases, that's an Apple iPhone sold.

I think Apple wants to control the experience. If you go to the carrier you may not get straight information about the Apple product, depending on whoever you deal with there. They may have ulterior motives to push one product over another. If Apple can get the customer into the Apple store that issue goes away.
Score: 3 Votes (Like | Disagree)
9000 Avatar
139 months ago
And Apple could learn another successful marketing tactic from Samsung. Hire some thin anorexic nubile Asian female models to advertise iPhones and iPads, dammit! It borders on sleazy, but sex sells. I'm no Samsung fan, but I will give credit when Samsung is doing something effective. Sleazy or not. :D

C'mon Apple, step up your marketing game!


Image (http://assets.hardwaresphere.com/uploads/2009/07/samsung-haptic-pop-phones-som-dambi.jpg)

Image (http://www.samsung.com/my/consumer-images/news/2013/samsung-appreciates-women-with-la-39fleur-collection/l3-0.jpg)

Image (http://urbanchristiannews.com/ucn/MODELS-hold-samsung-smartphones.jpg)

Image (http://cdn.theatlanticwire.com/img/upload/2013/03/15/7133631691_55bdd26e60_z.jpg)

Image (http://static1.i4u.com/sites/default/files/imagecache/main_image_fullwidth/images/2012/05/samsung-smart-tv-girl.png)
Those are anorexic? Should I start worrying about most of the females I know? :eek:

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The title is kinda weird. I thought it meant they boosted the stock dividends as a result.
Score: 2 Votes (Like | Disagree)
Rogifan Avatar
139 months ago
Why don't you focus on making a better product instead of marketing? People got iPhones and iPads because the other alternatives were terrible in comparison. Sure, promotions help, but Steve Jobs understood the importance of product design and innovation.

Make something meaningful. That's why everyone used to love Apple so much.

So iPhones and iPads were meaningful when Steve announced them but now they're not anymore? Touch ID isn't meaningful? The 600+ page patent filing talking about all sorts of ways Apple wants to further integrate touch id into Apple products isn't meaningful? The recent acquisition of PrimeSense isn't meaningful? What would be meaningful to you?
Score: 2 Votes (Like | Disagree)
Rocketman Avatar
139 months ago
Though Apple has seen slight improvements in in-store iPhone sales, further increasing iPhone sales within Apple Stores remains an uphill battle as Apple has roughly 250 retail stores in the United States that compete with more than 10,000 third-party retail outlets that offer the iPhone.
So Apple's 11% share of all phone sales within Apple stores is an extraordinary accomplishment! Right?

Rocketman
Score: 2 Votes (Like | Disagree)
obiegrad Avatar
139 months ago
The problem here I think is largely that other stores are discounting iPhones. When Best Buy or Target or Walmart knock $50 off the price who is going to buy it at the Apple Store?

As far as the account issues though, I actually think it's easier to get the phone from Apple, they have less incentive to stack the bill then the carriers do.
Score: 2 Votes (Like | Disagree)
fh-ace Avatar
139 months ago
Work via Apple Store also.

Every time my wife and I have upgraded, we've done it at the Apple store. No problems with the unlimited data grandfather clause and never been a headache.:)

I'm going to go out on a limb and say that most people who are still grandfathered with unlimited data will always upgrade via their carrier store. While other options may be available - it's the only "guaranteed" way to not have a headache.

No idea what percentage of people this is - but that's my .02
Score: 2 Votes (Like | Disagree)