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What is disgusting to me is that the Apple Stores, marked by extreme profit margins, and high turnover due to a scarcity of locations, have become a model copie
by mapt 14y ago
What is disgusting to me is that the Apple Stores, marked by extreme profit margins, and high turnover due to a scarcity of locations, have become a model copied by every chain retail store in the US, ten to a shopping mall. Big amounts of sleek empty space separate units to toy with, and ten employees wander around begging you to let them assist you.
Cell phones are commodity items, not modular case+fans+CPU+GPU+PSU+motherboard+X+Y+Z purchases. You can (and some markets do) fit $100k of product into an 8'x8' stall and have plenty of space left over. Cell phone plans are perfectly centralized, and can be purchased online or over the phone. At the same time, online reviews are essentially the only reasonable place to seek unbiased advice, and are plentiful.
This is a market demand that, while it may have reason to exist, could be filled by 10% of the current locations selling cell service & phones. Instead, T-Mobile needs a storefront, Verizon needs a storefront, Apple needs a storefront, and half a dozen adjacent electronics stores or electronic departments sell cell phones on the side, in every large strip mall or indoor shopping mall in America.
In a functional market economy, profitability is minimized through competition; It's a waste that we tolerate in order to incentivize performance. By 2013, the cell phone companies & retail established have established de facto agreement that it's better for them to plow profits into essentially purchasing large quantities of well-manned empty space in every major electronics store in the nation, rather than lower prices or improve their infrastructure.