Apple losing opportunities with iTunes and large retail chains
Despite Apple’s huge appeal in pop culture, students, media creators, and tech lovers, the company is destined to remain in a niche market if it continues to overlook opportunities in iTunes and large retail chains.
In June of 2007, Apple owned 3% of the PC market share, quite small but especially small when you consider the company owned 14% of the market in 1984, the year of first Macintosh computer. In 2004, Apple only owned 2% of the market, and its increase in market is share since then is likely due to “halo effect” of the iPod sales.
Apple’s computers are far from undesirable. They’re stable, they’re practically immune to viruses, they include a lot of useful software and exclude a ridiculous amount of “bloatware”, they “just work” with peripherals (most of the time), and they look absolutely beautiful.
They can be a tad on the expensive side at times, but they’re usually relatively competitively priced when you consider what they include, such as the new iMac: Bluetooth, 20″/24″ monitor, external remote, Firewire 800, Intel Core 2 Duo, 1 GB of RAM with an unused slot for more, Wi-Fi card, an amazingly beautiful keyboard with an imbedded 2 port USB hub, and more. After hearing all that and viewing the commercial posted below, how could you not buy one?
Well, the NY Times knows why you wouldn’t buy one: Where the heck can you get one or try one out? Unless you live near one of the 185 Apple Stores or you’ve joined the new trend of buying stuff online, you’re out of luck. Remember, the US is a huge place and a relatively small amount of the general public buy online.
Apple nearly refuses to work with large retail chains in offering their computers, and Best Buy actually dropped the Mac in 1999 because Apple would ship models and colors that pleased itself and not those ordered by Best Buy. Just last year, Bust Buy decided to give the Mac computer another go with a test offering in six stores. Best Buy then increased that number to 50 stores by the start of 2007 but refuses to place the Mac in all of its 872 stores, a move that could significantly distribute the Mac to a much wider audience than the 185 Apple Stores.
Another move that could further distribute the Mac is mass sales to large corporations, which it had previously done in its days of a larger market share. Now is a better time than any to make such a move since Windows Vista has turned out to be such a disappointment thus far; however, once Microsoft patches up its software, it’s going to be nearly unstoppable in the both the corporate and mass consumer world. But Apple refuses to change its ways in similar fashion to its refusal to change its operating structure with iTunes.
iTunes is currently the largest distributor of digital media over the Internet, although, such an achievement could be compared to being the “most gas efficient car Hummer has ever made”. The majority of video and music content is currently bought through brick and mortar stores, and it will continue to be if iTunes continues to be such a prude with implementing ridiculously restrictive DRM and file formats.
Some of its biggest partners, such as NBC and Universal Music Group, are beginning to back out iTunes because of the online store’s lack of ability to appeal to a much larger consumer base and their restrictive measures against letting content creators have more control over pricing and packaging options. NBC even struck a deal with Amazon’s Unbox video download store, which may receive a very useful partner in the near future, Amazon’s DRM-less online music store.
Apple can be almost useless at times when it comes to working with partners such as Best Buy, NBC, and Universal Music, and if it continues down this path, it will continue to hold its niche market share despite the company’s attractive products. Apple strives to “think different”, but sometimes it may think too differently.
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September 15th, 2007
Editors note: this story has been edited as the original version broke the BLORGE.com editorial guidelines. Corrective action has been taken.
September 15th, 2007
The first thing I thought was “why should I care about you if you don’t live near one of the 185 Apple stores,” but that’s not very nice…
September 17th, 2007
I ordered my first Mac from a store that advertised in the New York Times. My second one came from an online catalog. If you want one, you can get one. My experience with big box retailers is that the sales staff know nothing about the merchandise, but usually tell you something anyway. They just make up stuff. I have too often gotten home with something that was incompatible with my equipment because of a so-called “sales consultant” at Circuit City or Best Buy. They also have no enthusiasm for the products, but only want to sell that extended warranty. If I were Apple, I’d rather have my products represented by people who are interested, enthusiastic and knowledgeable, and not have them languishing on a display among all the riff-raff. What’s so important about a bigger market share? Apple is making tons of money, isn’t it?
September 17th, 2007
To Contrawise:
Than Apple should better train their representatives. Even Apple’s own Apple Store representatives hardly know what’s going on with their products. I find myself continually dismissing anything I’m told at my local Apple Store because they hardly know what they’re talking about.