Reports Persist of Apple Store Budget Cuts, Emphasis on Revenue

This second-guessing of the post-Jobs executive team has gotten really out of hand, though this was to be expected to some degree I suppose.<p>My personal experience with Apple Retail has still been nothing short of stellar, recently with two almost-no-questions-asked full replacements of a faulty iPad and Retina MBP. Sometimes strolling through Apple stores I have wondered if they were overstaffed, based on the simple fact that lots of people know how to use the popular devices and probably don't have as many questions as they did back when the store was mainly about selling Macs and digital cameras.<p>As for cost cutting, Apple has been doing it for years. Witness, for example, the radical reduction in pack-in goodies over the course of the development of the iPod. The second generation iPods came with a carrying case, remote, and charging brick [1]. The third left out the remote and carrying case [2]. The fourth left out the dock [3]. The fifth left out the brick [4].<p>Guaranteed if Cook had been in charge these would have been decried as evidence of Apple becoming a stingy, bean counting big corporation that lost its soul to save some money on pack-ins. In reality they were cutting fat and passed the savings on to us.<p>1) <a href="http://ilounge.com/assets/images/reviews_apple/ipod20gb/image/ipod20gb_16.jpg" rel="nofollow">http://ilounge.com/assets/images/reviews_apple/ipod20gb/imag...</a> 2) <a href="http://www.ilounge.com/assets/images/reviews_apple/ipod15gb/2cbigtn.jpg" rel="nofollow">http://www.ilounge.com/assets/images/reviews_apple/ipod15gb/...</a> 3) <a href="http://www.ilounge.com/assets/images/reviews_apple/4gpower/package.jpg" rel="nofollow">http://www.ilounge.com/assets/images/reviews_apple/4gpower/p...</a> 4) <a href="http://www.ilounge.com/assets/images/reviews_apple/ipod5/5box3.jpg" rel="nofollow">http://www.ilounge.com/assets/images/reviews_apple/ipod5/5bo...</a>

I think it's a fallacy to believe that suddenly Apple became stupid just because there's no more Steve.<p>I bet there's a lot more to this story than we can see at the moment.

<i>Last year when Cook became the permanent CEO, he hired Browett from UK-based Dixons to head the retail chain. Cook was apparently attracted by Browett’s like-minded focus on the more traditional concepts of retailing—logic and process leading to revenues and profits.</i><p>This is exactly why I'm short on Apple now. You'd be hard pressed to find somebody better than Cook to squeeze every last ounce of waste out of your supply chain but I see zero evidence of Jobs' uncanny product vision so far.

Well that is exactly what you would fear if you hire someone from Dixons to run the stores.<p>In the UK they have a reputation for uninformed staff and the physical stores aren't bad but they definitely aren't Apple Store quality either.

I seriously have no idea how John Browett got this position. His resume makes him sound like a complete ill-fit for this position

Tim Cook continues to chip away at the Apple empire.<p>R.I.P. Steve Jobs.

There are two things coming that will cause Apple to be making changes now: First is the economy is cooling off globally. The second is that Apple has major new product opportunities and it makes changes well in advance so that these new product launches go well.<p>On the economy:<p>The economy is really slowing down globally right now. This is much like the summer of 2007... the hints are there but it took a year before all hell broke loose (saw it in the dotcom bust as well. Same hints.) No way to know how bad it will be or if it will be anything very startling, or just a couple years of lower growth.<p>But when this happens companies feel it early, and the good ones react, and this happens months if not a year before things start to show up in the popular press like they did in 2008.<p>On future products: One thing intrinsic to apple's DNA is evolution. This is a company that is not complacent.<p>It is also a company that doesn't broadcast its intentions or its moves or its plans.<p>This means that when it sees opportunity, it starts to make changes well in advance of when it will be able to capitalize on that opportunity.<p>The Apple Store itself is a good example of this: One of the reasons the retail operation was created was to be able to eventually sell the iPhone and iPad directly to the public in a way that couldn't happen before. Macs can be sold online, but the iPad and iPhone need to be seen to be understood.<p>Apple stores have always done very well on the metrics apple cares about, one of which is profit. I don't see any reason to believe they are going to sacrifice those metrics to try and boost profit.