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Apple is capturing 75% of profits, and sees the stores as instrumental to that. Every other company seems to see retail as an additional cost. Apple started wi
by pwinnski 5y ago
Apple is capturing 75% of profits, and sees the stores as instrumental to that. Every other company seems to see retail as an additional cost.
Apple started with kiosks inside of Best Buy, too, and it took many years before their stores reached the level of ubiquity they have today. Any competitor trying to make the same level of investment would lead to Apple's share of profits inching closer to 100%, as their competitors would be spending a ton on retail buildouts.
Apple makes more per square foot of retail than anyone else[0]. It's not even really close. Each of the other companies you've mentioned has opened stores, albeit not on the same scale. None of them have seen anything like similar results, so why would they keep expanding to match scale?
Apple Stores are valuable because Apple products are valuable. Apple products are valuable in part because Apple Stores are valuable. It's a virtuous circle that doesn't work for any of their competitors, at least not any so far.
0. https://news.retailsphere.com/how-apple-became-the-worlds-highest-grossing-retailer-per-square-foot https://news.retailsphere.com/how-apple-became-the-worlds-hi...
- Terretta 5y agoApple products are also valuable because they build in user-centric dark-pattern limiters that HN hates but consumers happily value and pay for. These threads keep saying the profits are sales and marketing as if artificial. On the contrary, user-centricity even to point of dev-hostility is a specific product market fit tradeoff Apple pursues, giving the whole brand a halo effect and premium. Devs need to roll with that or will continually find themselves misaligned.