Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
Apple Reportedly Advised Technicians to Push iPhone Upgrades to Customers With Out-of-Warranty Devices
Last month, Apple lowered its revenue guidance for the first quarter of its 2019 fiscal year by up to $9 billion due to fewer iPhone upgrades than it anticipated, primarily due to economic weakness in the Greater China region.
A few months prior to the announcement, Apple began heavily promoting iPhone XR and iPhone XS trade-ins with a limited time promotion, prominent banner on its website, emails to older iPhone users, store signage, App Store editorials, and other uncharacteristically aggressive tactics aimed at boosting sales.
Bloomberg's Mark Gurman previously reported that Apple reassigned some of its marketing staff to focus on bolstering sales of its latest iPhone lineup in late October, around the time the iPhone XR launched. The report cited an unnamed source who described the efforts as a "fire drill."
In a report this week about Deirdre O'Brien succeeding Angela Ahrendts as Apple's retail chief, Gurman elaborated a bit more on Apple's tactics to promote its latest iPhones, claiming that the company advised its technicians to "push iPhone upgrades to consumers with out-of-warranty devices."
Senior retail staff were also tasked with making sure other employees were suggesting upgrades, according to Gurman:
It's unclear if the tactics had any influence on Ahrendts stepping down from her position. Unlike her short-lived predecessor John Browett, who reportedly pushed Apple retail employees to aggressively upsell products, Ahrendts focused on the experience with free Today at Apple creativity sessions and more.
Last month, Apple CEO Tim Cook admitted that "customers are holding on to their older iPhones a bit longer than in the past." In a letter to shareholders, Cook said Apple is undertaking and accelerating initiatives to improve its results, such as making it simple to trade in a phone at its stores.
Apple's reported efforts to push iPhone upgrades creates an interesting juxtaposition. On one hand, the company's environmental chief Lisa Jackson recently said customers using its devices longer "is the best thing for the planet," and on the other hand it is more aggressively encouraging customers to buy a new iPhone.
Skip to 1:23:51 mark for Lisa Jackson's comments
Whether the tactics are effective will be harder to gauge going forward, as Apple no longer discloses unit sales in its quarterly earnings report. Apple forecasted revenue between $55 billion and $59 billion in the current quarter, which would be down from $61.1 billion in the year-ago quarter.
A few months prior to the announcement, Apple began heavily promoting iPhone XR and iPhone XS trade-ins with a limited time promotion, prominent banner on its website, emails to older iPhone users, store signage, App Store editorials, and other uncharacteristically aggressive tactics aimed at boosting sales.
Bloomberg's Mark Gurman previously reported that Apple reassigned some of its marketing staff to focus on bolstering sales of its latest iPhone lineup in late October, around the time the iPhone XR launched. The report cited an unnamed source who described the efforts as a "fire drill."
In a report this week about Deirdre O'Brien succeeding Angela Ahrendts as Apple's retail chief, Gurman elaborated a bit more on Apple's tactics to promote its latest iPhones, claiming that the company advised its technicians to "push iPhone upgrades to consumers with out-of-warranty devices."
Senior retail staff were also tasked with making sure other employees were suggesting upgrades, according to Gurman:
In December, as Apple executives worried about demand, the company asked retail employees to promote the new iPhones using methods not seen before. Technicians were told to push iPhone upgrades to consumers with out-of-warranty devices. Senior sales staff had to make sure other retail workers were suggesting upgrades, and easels offering generous trade-in deals for the iPhone XR were erected in stores. Apple's online homepage was also replaced with reduced iPhone pricing that required a trade-in of older models.We presume this refers to Genius Bar technicians at Apple Stores, but there is also a network of Apple Authorized Service Providers, some of which double as authorized resellers that offer the latest Apple products for sale.
It's unclear if the tactics had any influence on Ahrendts stepping down from her position. Unlike her short-lived predecessor John Browett, who reportedly pushed Apple retail employees to aggressively upsell products, Ahrendts focused on the experience with free Today at Apple creativity sessions and more.
Last month, Apple CEO Tim Cook admitted that "customers are holding on to their older iPhones a bit longer than in the past." In a letter to shareholders, Cook said Apple is undertaking and accelerating initiatives to improve its results, such as making it simple to trade in a phone at its stores.
Apple's reported efforts to push iPhone upgrades creates an interesting juxtaposition. On one hand, the company's environmental chief Lisa Jackson recently said customers using its devices longer "is the best thing for the planet," and on the other hand it is more aggressively encouraging customers to buy a new iPhone.
Whether the tactics are effective will be harder to gauge going forward, as Apple no longer discloses unit sales in its quarterly earnings report. Apple forecasted revenue between $55 billion and $59 billion in the current quarter, which would be down from $61.1 billion in the year-ago quarter.
Tag: bloomberg.com
Buyer's Guide: iPhone XS (Don't Buy), iPhone XR (Neutral)
[ 382 comments ]
Top Rated Comments
(View all)
18 weeks ago
Oh no! Apple tries to sell iPhones. I guess this writer has never stepped into a car dealership or ordinary mall retail store.
18 weeks ago
“We love the environment and are taking steps to reduce our impact.”
Also Apple,
“Buy a new phone every 12 months. Ignore the e-waste and negative effects of mining raw materials.”
Also Apple,
“Buy a new phone every 12 months. Ignore the e-waste and negative effects of mining raw materials.”
18 weeks ago
desperate time for desperate measure...
Customer: "Hi, I want to buy an iphone cable..."
Apple Genius: "okay... you want a brand new iphone with that??"
Customer: "Hi, I want to buy an iphone cable..."
Apple Genius: "okay... you want a brand new iphone with that??"
18 weeks ago
Mr. Cook, iPhone isn't selling as well. What should we do?
a) Lower prices
b) Betray customers trust in Genius Bar technicians
This is just disappointing. A big advantage of Apple Stores was that you could trust they were offering you something according to your needs.
a) Lower prices
b) Betray customers trust in Genius Bar technicians
This is just disappointing. A big advantage of Apple Stores was that you could trust they were offering you something according to your needs.
18 weeks ago
I don't have an unlimited phone budget. Apple increases prices, I increase purchase intervals. That simple.
18 weeks ago
I don’t know what the big deal is. My girlfriends restaurant always pushes soda products on people when they ask just for water
18 weeks ago
I don’t mind if someone makes a suggestion. But, don’t get pushy.
Not saying they were pushy. Just saying...:cool:
Not saying they were pushy. Just saying...:cool:
18 weeks ago
Sir.. Your option is $329 for your 6 Plus out of warranty repair or $749 for the New XR upgrading you 4 years.
It sounds terrible that they gave customers options.
It sounds terrible that they gave customers options.
[ Read All Comments ]
Belkin today announced that its InvisiGlass Ultra Front and Back Protection for the latest iPhone models is now available for purchase from Apple.
The InvisiGlass Ultra Front and Back...
Apple this morning released the second beta of watchOS 6, the software that runs on the Apple Watch. The second beta comes two weeks after Apple first unveiled the new update at the Worldwide...
Apple today seeded the second beta of an upcoming tvOS 13 update to developers, two weeks after first unveiling the tvOS 13 software at the Worldwide Developers Conference.
Designed for the...
Aspyr has announced that today is the last day of sales for its 32-bit Mac games, in anticipation of Apple's upcoming move to 64-bit only apps on macOS Catalina later this year.
After...
Amazon is offering the latest MacBook Pro at a new all-time-low price, with savings of up to $199 off original prices. Across the board these are the best deals available online from the major...
MacRumors and Twelve South's latest partnership offers our readers an exclusive chance to save 12 percent off their entire purchase on TwelveSouth.com. In the past, our exclusive Twelve South...
In iOS 13, Apple has extended the system's built-in screenshot feature to include the ability to save a full web page as a multi-page PDF.
Don't expect this option to appear when...
For this week's giveaway, we've teamed up with Twelve South to offer MacRumors readers a chance to win a prize pack that includes a BookBook vol. 2 for iPad Pro, an AirFly, and a set of...
