Apple CEO is quitting and the iPhone it’s extremely vital product, is facing collapse. That’s not such positive news for Apple in the near future, but even a bigger opportunity for the Apple store to shoulder even bigger responsibilities for the company.
Apple (AAPL) constructed its stores to be the paramount showroom for its most recent products. Probable customers can examine each Apple device personally. However, the model encounters a prominent provocation, last quarter the Apple iPhone sales plummeted 15%. People are not interested in purchasing Apple gadgets and they are sticking to their old phones dearly than in the past.
Retail chief Angela Ahrendts declared that she will be quitting the company. Now Apple must figure out the future of its 500 retail stores. Daniel Ives, analyst at Wedbush Securities said that Apple store needs to mirror an adapting Apple franchise. This has been missing for the last couple of years.
Apple does not divulge sales or foot traffic from its stores, but Ives evaluated they render around 25% of the company’s $265 billion in yearly revenue. The Apple store continues to be ruling the roost. It is the sole attraction of revenue per square foot than any other retailer — including Tiffany.
However, Apple store relies a lot on product instigations, specifically the iPhone to bring in customers. Jason Goldberg, head of the commerce practice at digital agency SapientRazorfish said that Apple stores function only when they have escalated demands and sexy products.