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.

iphone5s5c

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.

Top Rated Comments

mbh Avatar
128 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
128 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:

----------

The title is kinda weird. I thought it meant they boosted the stock dividends as a result.
Score: 2 Votes (Like | Disagree)
Rogifan Avatar
128 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
128 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
128 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
128 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)

Popular Stories

iOS 17

Apple Releases iOS 17.0.1 and iPadOS 17.0.1 With Bug Fixes, Plus iOS 17.0.2 for iPhone 15 Models

Thursday September 21, 2023 10:28 am PDT by
Apple today released iOS 17.0.1 and iPadOS 17.0.1 updates for the iPhone and the iPad, adding bug fixes to the new software. The iOS 17.0.1 and iPadOS 17.0.1 updates come just a few days after Apple launched iOS 17 and iPadOS 17. The software, which is build 21A340, can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. There is a...
iPhone 16 Mock Header With Dynamic Island

Skipping the iPhone 15 Pro? Here's What's Rumored for iPhone 16 Pro

Friday September 22, 2023 9:29 am PDT by
Are you skipping the iPhone 15 Pro and waiting another year to upgrade? If so, we already have some iPhone 16 Pro rumors for you. Below, we recap new features rumored for the iPhone 16 Pro models so far:Larger displays: The iPhone 16 Pro and iPhone 16 Pro Max will be equipped with larger 6.3-inch and 6.9-inch displays, respectively, according to Ross Young, CEO of Display Supply Chain...
Update Your iPhone 15 to iOS 17

Warning: Update Your iPhone 15 to iOS 17.0.2 Before Transferring Data From Another iPhone

Friday September 22, 2023 6:36 am PDT by
If you are unboxing an iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max today, make sure to update the device to iOS 17.0.2 before transferring data to the device from another iPhone, or else you might encounter issues. iOS 17.0.2 is only available for the iPhone 15 lineup. Apple says the update fixes an issue that may prevent transferring data directly from another iPhone...
Apple Watch Ultra 2 double tap gesture 230912

watchOS 10.1 to Enable Apple Watch's New 'Double Tap' Gesture

Thursday September 21, 2023 12:52 pm PDT by
The new Double Tap gesture for the Apple Watch Series 9 and the Apple Watch Ultra 2 will be enabled starting with watchOS 10.1, according to Marques Brownlee, host of the popular tech-focused YouTube channel MKBHD. The first beta of watchOS 10.1 will likely be available by next week, and Apple announced that the software update will be released next month. Brownlee shared his impressions...
emojipedia 15 1 emoji

Emoji Coming to Future iOS 17 Update Include Shaking Head, Brown Mushroom, Lime, Phoenix and More

Tuesday September 19, 2023 12:43 pm PDT by
As Apple was announcing new iPhone models last week, the Unicode Consortium was officially approving new emoji characters that are set to be added to smartphones starting in 2024. Mockup of new emoji from Emojipedia Approved Unicode 15.1 emoji include phoenix, lime, an edible mushroom, shaking head vertically (as in a "yes" nod), shaking head horizontally (a "no" head shake), and broken...
iPhone 15 Pro Fingerprints

Apple Says Fingerprints Can 'Temporarily Alter the Color' of iPhone 15 Pro's Titanium Frame

Thursday September 21, 2023 2:48 pm PDT by
In a support document updated today, Apple indicates that fingerprints might "temporarily alter the color" of the titanium frame on the iPhone 15 Pro and iPhone 15 Pro Max. Fortunately, Apple says this is not a permanent condition, as the fingerprints can be wiped off just like on any other iPhone to restore a clean finish. "For iPhone 15 Pro and iPhone 15 Pro Max, the oil from your skin...