Apple Store

The mobile content landscape undergoes rapid change

Phil Goldstein — Wed, 29 Oct 2008 10:56:57 -0400

The mobile content landscape is changing rapidly, as application stores, improved web browsers and more widgets on phones change the entire business structure of the mobile content ecosystem, Mark Lowenstein writes. Commentary

Apple iPhone 3G (8GB model) - Top Selling Smartphones

Phil Goldstein — Wed, 01 Oct 2008 10:34:30 -0400

The ubiquitous über-device seems to both have it all and have no peer--yet. Apple's revamped iPhone, which launched in July to much fanfare and then some sour reviews because of its sometimes-unreliable connection to AT&T Mobility's 3G HSPA network, remains popular. It is the top seller for a few key reasons: the scope of its functions (including being both a phone and an iPod, its accelerometer functionality and having Google Maps and a whole host of applications available from the Apple App Store); its style, including its sleek look; and in general, the aura around the brand. When analysts talk about an IPK--an iPhone Killer--they mean something that will have the same brand recognition as the iPhone. So far, in that respect, it remains peerless.

Mark Lowenstein: Improving the Store Experience

Mark Lowenstein — Thu, 25 Sep 2008 10:28:41 -0400

A couple of times a year, I do some wireless mystery shopping. I walk into several wireless stores--a mix of carrier-owned (Verizon, AT&T), independent third party (Wireless Toys), and big box (Best Buy, RadioShack) stores--in a few different cities, and gauge how the store experience has evolved alongside the value proposition that the industry is trying to promote. My conclusion after the most recent set of site visits is that the operations side has improved significantly, but the overall customer experience still does not "delight." The objective of many customers walking into a wireless store is to get in and out of there as quickly and unscathed as possible--a mentality akin to visiting the Department of Motor Vehicles. This is a problem, because the store experience is not keeping pace with the evolution of how wireless is increasingly becoming a part of the digital life framework.

Before delving into what needs to be improved, it is important to recognize how wireless is different from other touch points in consumer electronics. First, the primary objective in wireless retail is still focused on selling services, rather than things. This takes longer, is more complex, and involves a different type of training and compensation structure for store employees. Second, more than 50 percent of all transactions in stores have nothing to do with selling anything. These are people who walk in to pay a bill, have a problem with their phone, or have some question about their service. This latter point means two important things--there is a needed focus on triage and traffic flow; and a need to carefully manage store costs.

A major focus over the past 2-3 years has been on improving the operational aspects of wireless stores. Customers were waiting in huge lines and were spending too much time in the store given what they were trying to accomplish. So there was a big focus on the basic blocking and tackling of the store experience. That focus centered around three key principles:

Streamlining processes. This is not sexy stuff, but includes things such as reducing the number of screens a store agent needs to plow through to sign up a new customer.
Automating certain functions. This automation includes such things as putting bill payment kiosks in the stores, and encouraging customers to use the Web for self-service.
Managing traffic flow. This mainly involves up-front triage when a customer walks into a store, pointing them in the right direction, and managing expectations of wait times.

While there is still much work to be done, I would say that significant progress has been made along many of the elements most frustrating to customers and store managers alike.

The next phase presents a different set of challenges. The focus on value-added services, more advanced devices, and greater role of the phone as part of the overall digital lifestyle will place greater stresses--and create new opportunities--for the wireless retail channel. I believe there are three essential priorities, all of which are inter-related. First, there is still a huge amount of work to do with respect to sales training. While store employees are more knowledgeable about data services than they were a couple of years ago, very few are able to successfully navigate the range of devices, operating systems, PC synchronization, etc., that is becoming part of the wireless territory. Whether the customer receives good (or even correct) advice or help varies widely. Of course, it would be tempting to benchmark against Apple store employees, but a more realistic comparison is the quality of training and expertise at Best Buy (good) compared to Circuit City (lousy).

The next priority is merchandising. It is still amazing to me how little delineation there is between the range of phones displayed in wireless stores, or why so few can be tried out. Accessories are another huge, largely under-tapped opportunity. Most wireless accessories are undifferentiated and unattractive, and you have to go through gyrations to figure out which charger goes with which phone, or why you should spend $79.99 on a Bluetooth headset that does the same thing as the $59.99 one next to it. By contrast, look at the exciting range of accessories that have been built for Apple products, or at the $100 Monster cables you buy to connect your DVD to your TV compared to the $6.99 RCA cables of yesteryear. Besides being cool and attractive, these accessories are hugely profitable. If wireless phones are also going to be media players, cameras and Internet devices, we need to build a better accessory ecosystem around them.

Third, we need to improve the look and feel of wireless stores. There have been some attempts to create higher-end stores or "experience" stores, but few have seen the volume increase needed to justify the higher cost. I think there's some reasonable room for incremental improvements, without having to be Apple or Bang & Olufsen. Less garish lighting, demonstration islands in the middle of the store, and more attractive displays for phones and accessories would be a good start. Think Starbucks vs. Dunkin' Donuts, or Panera Bread vs. Subway. Over time, this is going to be about selling a digital lifestyle, not just a phone or service plan.

Mark Lowenstein is Managing Director of Mobile Ecosystem. Click here to subscribe to his Lens on Wireless newsletter, and to find out more about an exciting event planned for October, the New England Mobile Summit.

Is T-Mobile taking a page from Apple?

Sue Marek — Mon, 11 Aug 2008 12:03:04 -0400

According to AppleInsider, T-Mobile USA is developing a unified software store that would mimic Apple's App Store but would work with every T-Mobile wireless device.

This strategy is a big departure for T-Mobile, which has always made mobile applications available through its deck. That deck often varies depending on the device and the operating system. According to reports, T-Mobile would offer a store for all its devices that could support simple Java apps and more sophisticated apps intended for operating systems such as Google Android and Windows Mobile.

Although T-Mobile hasn't publicly revealed any details about its plans, it has launched a developer site that lets teams build their programs and has some mention of a future go to market strategy. Of course, today's news that Apple's App Store downloads have exceeded 60 million in the first month is probably an added incentive for carriers such as T-Mobile to go this route.

For more:
- see this article

Related story:
App Store downloads exceed 60 million in first month

Apple: More than 10M apps downloaded from App Store over weekend

Lynnette Luna — Tue, 15 Jul 2008 13:42:16 -0400

Apple announced yesterday that users of Apple's iPhone and the iPod Touch downloaded more than 10 million applications from the company's new App Store over the weekend. The company already announced that it sold 1 million 3G iPhones over the weekend, which InformationWeek reckons would mean that individual customers likely downloaded multiple applications from the App Store. When Apple launched the iPhone 3G, it at the same time made the phone's operating system available on the 2G iPhones and the Touch as an upgrade, giving both devices the same functionality as the iPhone 3G, which includes access to the App Store.

Apple launched the App Store with more than 500 applications built by third-party developers. By Monday, that number had grown to more than 800, with more than 200 available at no charge and 90 percent of the paid software costing less than $10.

For more:
- take a look at InformationWeek

Related stories:
iPhone 3G aftermath: Apple sells 1 million devices in 3 days. Apple story
iTunes glitch mars 3G iPhone launch. iTunes story

iPhone 3G: the wait is finally over

Sue Marek — Fri, 11 Jul 2008 12:08:30 -0400

Across the country people flocked to Apple and AT&T stores early this morning in anticipation for the 8 a.m. store opening and their first chance to snap up an iPhone 3G device. In Denver, lines started forming in front of the Apple store at the Cherry Creek Mall at about 4 a.m. and by 7 a.m. the line included about 75 people. At a nearby AT&T store, people started lining up about 5 a.m. and by 7 a.m. the line included about 50 people. Most of those in line at the AT&T store were existing AT&T customers that wanted to upgrade to the 3G device.

Despite predictions of long waits due to the extensive activation process, there have been a few glitches reported so far. An altercation broke out in Florida among those waiting in line and police had to be called. In the U.K. there was a minor software snafu.

Check out the lines in Denver for the iPhone 3G here.

For more:
- read this article
- read this blog
- See all of FierceWireless' coverage of the iPhone 3G here

Related stories:
Countdown to the iPhone 3G
Is the iPhone 3G a game-changer for mobile broadband?
iPhone 3G: Faster, cheaper but still not perfect
Will July 11 be a nightmare for 3G iPhone buyers?

Report: AT&T to cut iPhone price to $199

Wed, 30 Apr 2008 06:59:56 -0400

According to a report in Fortune, AT&T is planning to reduce the price of Apple's upcoming 3G iPhone to $199 through a $200 subsidy. Apple is expected to announce two version of the 3G iPhone, according to the report: an 8GB iPhone for $399 and a 16GB iPhone for $499. By reducing the pricepoints by $200, AT&T will be putting the popular handset within reach of more subscribers spending limits. Since iPhone users have proven to be heavy data users, it follows that recouping the subsidy wouldn't take too long for AT&T.

Since iPhone users already need to sign-up for a two-year contract with AT&T the rumored move brings up a few questions. The report claims Apple stores will not sell the subsidized iPhones. So why would anyone buy an iPhone from an Apple store? The phone is locked to AT&T, anyway. Is that $200 just to enjoy time at the Apple store? Under this somewhat unlikely scenario, perhaps, Apple will be selling unlocked iPhones at full price.

For more on the report:
- read this article from Fortune

Related:
AT&T: 95% of iPhone owners surf the mobile web
Apple counts down Top 10 iPhone web apps

iPhone rebate sent via SMS - Image

Mike Dolan — Fri, 14 Sep 2007 11:03:00 -0400

Today iPhone users who bought their handset before August 22 can receive their rebate via SMS. If you were an early adopter, go to the Apple website, enter your telephone number and iPhone serial number and you will receive a text message for your $100 Apple Store rebate.

Click here to read Steve Jobs' rebate promise.

Click here to read more about the iPhone.

Apple sends $100 iPhone credit via SMS

Fri, 14 Sep 2007 06:59:56 -0400

Apple is sending the previously announced $100 store credit to iPhone users' handsets via SMS. The message contains a code that can be used online or at an Apple store. Any iPhone user who bought their iPhone before August 22 and did not already make use of another rebate or promotional offer, needs to go to the Apple website and input their iPhone serial number to get the code via SMS. The user then inputs that code into the store credit website to receive theÃ‚Â $100 voucher. Here's the letter Jobs sent out last week explaining his reasons for the store credit. And here's what iPhone users will see when they get their message (click to enlarge):

Speculation about the European launches for the iPhone is also heating up. According to a major newswire service, T-Mobile Germany will be announcing next week that it is the exclusive carrier for the iPhone in Germany, while Apple has sent out invitations to an event in London next week called "Mum is no longer the word." Speculation has also surrounded an upcoming Apple event in Paris, scheduled for September 25. O2 is suspected to be the exclusive U.K. carrier, while Orange is rumored to be Apple's pick for France.

For more on Apple's most recent iPhone maneuvers:
- read this article from DailyTechRag

FEATURE: iPhone's Key to Long-Term Success May Be In the Software

Thu, 19 Jul 2007 06:59:53 -0400

By Ken Hyers and John Byrne

The hype that is the iPhone, fed by a perfect storm of skillful marketing, media stories and an underlying desire from consumers for the ultimate media-centric mobile phone, finally culminated on June 29 when the iPhone went on sale. In the first weekend it was available, customers bought nearly every single iPhone available, with the handset selling out in every AT&T store, and nearly every Apple store. Whether or not the iPhone--in the long run--is ultimately a success is unknown but the device has already changed expectations about what a full-featured mobile phone is and what it should do.

The iPhone has the potential to change the mobile industry in ways that have been well discussed over the past few weeks and months. Yes, the features are really cool--the touch screen, the gesture recognition, the graphics, etc. But one area that has not received as much press attention as it should is the iPhone's OS X operating system, which integrates with other Apple products including the iTunes website. This means that the iPhone's software is able to be updated on a regular basis, and that these updates occur seamlessly, in the background, with very little input on the part of the user. While updating smartphone software is not unique to the iPhone, the ease of the process is unique. In contrast to the iPod experience, updating a Nokia N95 (for example) requires more than a dozen steps on the part of the user, including manual backup of contacts and other personal information, and a notice stating that interfering with the update process by disconnecting the phone during update will lead to "severe damage to your phone and it may stop working."

Click here to continue reading...

Ken Hyers and John Byrne are analysts for Technology Business Research, a company-focused high-tech research firm based in Hampton, New Hampshire. http://www.tbri.com/

iPhone Key to Long-Term Success May Be In the Software

Wed, 18 Jul 2007 16:12:32 -0400

By Ken Hyers and John Byrne

The iPhone has the potential to change the mobile industry in ways that have been well discussed over the past few weeks and months. Yes, the features are really cool--the touch screen, the gesture recognition, the graphics, etc. But one area that has not received as much press attention as it should is the iPhoneÃ¢â‚¬â„¢s OS X operating system, which integrates with other Apple products including the iTunes website. This means that the iPhoneÃ¢â‚¬â„¢s software is able to be updated on a regular basis, and that these updates occur seamlessly, in the background, with very little input on the part of the user. While updating smartphone software is not unique to the iPhone, the ease of the process is unique. In contrast to the iPod experience, updating a Nokia N95 (for example) requires more than a dozen steps on the part of the user, including manual backup of contacts and other personal information, and a notice stating that interfering with the update process by disconnecting the phone during update will lead to Ã¢â‚¬Å“severe damage to your phone and it may stop working.Ã¢â‚¬Â

As any iPod user knows, during the process of syncing with iTunes, software refinements are frequently sent to the device along with digital music and video files. Bringing AT&T into the equation raises the possibility of downloading new applications and features that take advantage of AT&T mobile connectivity. In effect, the iPhone is a mobile computer that is constantly adding new services and features.

While no one outside of AT&T and Apple knows exactly what features might be added, one can speculate about the applications that will appear on the device. ItÃ¢â‚¬â„¢s unlikely that Apple will allow the iPhone to include media services from AT&T such as video, or music subscription services such as Rhapsody, that bypass iTunes. But other services, such as navigation software that takes advantage of the iPhoneÃ¢â‚¬â„¢s built-in GPS capability and gaming products that use the deviceÃ¢â‚¬â„¢s gesture recognition, touch-screen and accelerometer, are likely. VoIP could also be another possible application if AT&T decides to offer a service using VoIP over WiFi similar to what T-Mobile USA is doing with its recently-launched Hotspot@Home service.

The iPhone has the ability to be an industry-changing device, not just because of the features it currently has, but because of the ability to add new features. Products and services, some as yet not thought of, will appear on the phone. While the hardware of existing iPhones wonÃ¢â‚¬â„¢t change, their software will, making the current iPhone less likely to go out of date in a year or two. This is good, not just for AT&T and Apple, who will be able to drive new services through the device, but for early iPhone adopters, who paid substantially more for the iPhone than for nearly all other mobile phones available on the market today.

Ken Hyers and John Byrne are analysts for Technology Business Research, a company-focused high-tech research firm based in Hampton, New Hampshire. http://www.tbri.com/

iPhone: 525K sold, activation issues and more

Mon, 02 Jul 2007 06:59:55 -0400

The iPhone launch went off on Friday with only a few minor glitches: Point of sale terminals went down temporarily, some iPhones wouldn't activate when users got them home and, of course, most people had to wait in line for a few hours. According to a report in The Wall Street Journal, about 2 percent of iPhones had activation issues.

Various analyst reports have estimated the number of Apple iPhones sold over the weekend at 500,000 (Piper Jaffray) or 525,000 (Global Equities Research), and about half of those phones went to existing AT&T subscribers. If the figures check out, this could be a big quarter for AT&T as far as subscriber adds are concerned.

Of course, FierceWireless had its own expedition to get hands-on with an iPhone, thanks to a member of our team willing to shell out the money to buy one. Our journey for an iPhone included getting kicked out of an Apple store located inside a mall in the suburbs of DC, hours waiting in line downtown, minutes waiting inside the store as the point of sale system failed and a finally triumphant activation process at home. You can read the play-by-play with photos here and enjoy an overly enthusiastic "unboxing" of the iPhone at sister publication DailyTechRag, which is full of photos, too.

For more on the iPhone fallout:
- read this WSJ article