Apple and Circuit City to make a second go at Mac sales
It didn't work five years ago, but a rejuvenated image and fast-approaching holiday shopping season have returned Apple Computer to Circuit City, where this month it will again try its hand at selling Macs.
Last week, select Circuit City employees were sent to Apple's headquarters in Cupertino, Calif. where they were paired with Apple Solution Consultants (ASCs) for a week-long training expedition. The goal of the program was train Circuit City reps to effectively market the Mac and its strong-points, rather than lure prospective buyers towards their own familiarities in the Windows PC isle.
"This is a pilot program that's just getting underway and we will evaluate how it is doing over the next several months," Circuit City spokesman Jim Babb told AppleInsider. He added that in addition to Macs, the retailer would also stock select Mac software titles and accessories.
Circuit City, the nation's second largest consumer electronics retailer, and Apple, the world's most recognized niche computer manufacturer, have run this course before. In July of 2000, the two companies announced they were teaming to offer Appleâs iMac, iBook and AirPort products throughout Circuit City's then 570 retail stores. But with Mac maker cutting the ribbon on 27 of its own retail stores the following year, the two companies mutually decided it would be best to go their separate ways.
Things could play out differently this time around, say insiders. With its brand now booming and the first signs of Mac market share gains peering through the clouds, Apple is reportedly considering a move that would pull ASCs from CompUSA boutiques — a deteriorating model — and reassign them to trendy Circuit City posts. Insiders say the Mac maker's relationship with CompUSA has been waning with each new Apple retail store it launches.
The move into Circuit City is just on facet of a much broader strategy from Apple, aimed at increasing the number of worldwide distribution points for its Mac product line. While the company's iPod digital music players can easily be located in over 40,000 shops, there are only about 7,000 locations where customers can purchase a Mac; and even fewer where customers can first take one for a test drive.
Earlier this year, Apple began testing a similar pilot at select west coast Best Buy locations. Like Circuit City, Best Buy has indicated that it is prepared to scale the pilot program "rapidly" if results prove strong. During a conference call in July, Apple said was "evaluating results" of the program but had ">nothing new to announce
An expanded deal with Best Buy, which operates more than 900 outlets nationwide, could add more than $400 million to Apple's top line each year, analysts have said. Circuit City, though smaller, could prove to be an equally fruitful venture with 600+ locations.
62 Comments
Circuit City is kinda like the JC Penney's or Kohl's of consumer electronics. They always seem like they're a heartbeat away from bankruptcy.
Until Apple makes it worth their while, like other pc makers, third party sellers are not going to push Macs because they don't get as much commission. Unless, of course, the public KNOWS it wants an Apple computer and can't be swayed by the pimply-faced decepticons who are "helping" them.
I live in the midwest (michigan) and my bestbuy has macs now...
last time cc was supposed to renew their Mac push, i applied for a part-time position, practically volunteering my time (four hours in their store wouldn't earn me what 45 minutes overtime at my normal job would have).
the manager pulled me into the office and told me straight to my face that he didn't care how knowledgeable i was about any product -- it was obvious that knowledge didn't matter -- the only goal was that a service plan walked out with every purchase. he told me he didn't get where he was by caring about the products or even knowing as much as the customers. he said he had a pitch for the service plans and that's where he made his money and how he had become manager in such a short time. he didn't care what the customer was looking at, just sell the service plan.
it was rather discouraging, to say the least. i told him that i didn't believe in service plans and could never sell one, then i stood up, thanked him for his time and left. they had someone else call me a week later to see if i was still interested in the job as my application and interview were favorable. i couldn't even come up with anything funny to say, i was so caught off guard. i simply said i didn't have time.
do they still intend to compete with AppleCare?
sorry, but for a lot of people now there are Apple stores within driving distance. i doubt anyone who is really interested in buying a Mac is going to buy a Mac from cc (except for possible extended, no/low interest payment plans). i expect, like last time, the cc workers will try to "switch" those interested in Mac to a more "bang for your buck" PC (it won't be so easy now with intel inside). i can't see how it could work out any better this time.
like stated elsewhere, i always expect to see the cc building up for lease. i can't see how anyone can stand to be assulted by the "salespeople" and actually complete a transaction.
all of this should have been expected considering the fact that you could only get the "e-one" e-machine knock-off of the original imac at cc and they had them sitting in the exact spot where they had previously had the last all-in-one Apple products.
this is going to be a disaster. almost everyone has their preference, mac or pc. now people who don't know what computer to buy will walk out with a mac or pc depending on which sales rep they get.
aghh. well, its good for me. i'm in louisiana and the closest apple store is in houston, 4 hours away. at least i have a compusa about half an hour away that sells mac.