Greenville Business Magazine 2010 July issue : Page 54››executive lifestyles – technology A Genius Pirate Comes To Town ›executive lifestyles – technology A Genius Pirate Comes To Town T T he Apple Store – arriving at Haywood Mall near the tentative date of July 10 – is about twice as large as the only other Apple store in the state, at 301 King Street in Charleston. Why Greenville for this prestigious retailer – which is also the most profitable, per square foot? You can’t ask CEO Steve Jobs such a question. Or anyone else. Apple, being one of the most secretive companies on the planet, didn’t also get to be one of its largest by sharing secrets. However, you can bet that the time and place for this decision had much to do with demographics. (Plus the fact that Haywood Mall is in proximity to major interstates). Apple likes malls, but a more important consideration for them is the likelihood that their business model (of being a destination retailer) will work well. An Apple Store opening, after all, isn’t like most other chain store openings. Not only is it a rare event, (opposite to, say, a Home Depot or Starbucks opening), but it brings to bear a certain “coolness” factor that comes with being so secretive ... and successful. Steve Jobs is fanatical about “what’s next,” and his products (such as the iPod, iPhone, and iPad) have not only revolutionized electronics, but culture itself. This means that secrecy 54 GREENVILLEBUSINESSMAG.COM | JULY 2010 is not just a necessity (to avoid being copied or beaten to market), but it’s also a tool now, too. Much as the plot struc- ture of a suspense novel is a tool. At an opening I attended in Tucson, over two hundred fans waited outside for hours for the store to open. And many diehard users, loyal to the brand, had driven over a hundred miles to get there. Did they return? Absolutely. Six months later, the store was full of people on weeknights and weekends. Indeed, the average revenue for an Apple store in 2009 was $26 Million, and most of the 284 that exist are not as big as the Haywood Mall store (while over 60 of the 284 are in other countries.) Califor- nia and Florida have the most stores, but nine states have none at all. As an atten- dance record, there were 11,000 visitors the first day Apple opened in London, while the average number of visitors per store per week in the second quarter of 2009 was 12,700, scoring $1.68 Billion in quarterly sales and $373 Million in profit. Think “cutting edge,” and you’ll understand why an Apple store in NY cost roughly $30 Million to build, and why even the typical store runs about $1 Million to $8 Million to open. Among the materials used are bead-blasted stainless steel siding from Japan, Italian siltstone flooring, and UK-designed glass fabricated in Germany. What’s different about the Apple Store experience? Well, for one thing, clerks can make sales via hand held devices that scan credit cards and issue receipts to one’s email address, so customers don’t have to wait in line at a register. The store itself contains what is called a “Genius Bar,” where computer professionals answer questions. (One can use any computer on display to get their place at that bar, but no one should expect answers about PCs unless those questions relate to transferring data onto a new Mac.) Salespeople are also well trained, with only one in 17 applicants getting hired during the short hiring phase. In fact, everything Apple does is calculated to generate “buzz” and head-turning. Is Bill Gates watching, too? You bet. Microsoft stores track Apple for possible locations to exploit, and in much the same way that their dueling rivalry unfolded, as chronicled in the movie “Pirates of Silicon Valley.” ■ Jonathan Lowe's fifth novel will be published in the Fall, and was written on a Mac. New to Greenville too, he is editor of TowerReview.com. >>columns - TechnologyJonathan LoweA Genius Pirate Comes to Town Publication List |
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