Replies to post #70577 on Apple Inc (AAPL)

[langostino]

Driving sales through Apple stores


Just one more element in a spectacularly brilliant rollout execution -- it looks like Apple is going to drive well north of 90% of sales through its own retail stores. They'll expand sales to other retailers eventually, but for now they're maximizing while they can. The difference in selling through their own stores vs. others probably represents a 50+% increase in operating margin, as this flows straight to the bottom line.

Beyond that, this brings a tremendous amount in peripheral sales.

And ... "it slices, it dices, but wait, that's not all!" ... it drives the "halo". At some point Apple might give some figures on what percentage of iPhone buyers have never owned a Mac product before, and how many of those entering the Apple stores had never been to an Apple store (and presumably never seen a Mac) before.

The buying and activation process, even with the first day glitches experienced by some, seems so utterly beautiful. ATT must be watching in wonderment.

[langostino]

Number portability


Although most people are now at least vaguely aware they can change carriers without surrendering their phone number(s), I think most believe it's not practical in real-world experience.

For quite some time after the portability legislation was passed, it was really difficult to jump through the administrative hoops. Often people were hung out to dry for days.

There are going to be a lot of people who are stunned at how easy and painless it is now. People who might otherwise have figured there wasn't much point in considering switching carriers because of the hassle involved. I'm expecting when they read about and see the iPhone switching process in action they're going to be suddenly open to the notion of switching.

[KCMW]

good or bad?

So we read 'available' at ALL Apple locations as 'we didn't sell as many as we thought we would'. Or as, 'We really made sure we had a supply on hand at our stores, T will get theirs as best we can'.

FWIW, the T store I went to said they sold out in 72 minutes.

-KCMW

[chasky]

Dropped by the local T store a bit before noon today. All sold out (in the range of 70). Put in for fulfillment thru them (8 gig version). While I was there, more showed up to order them. With 11 stores in Louisville, I would say it is a hit. BTW, there was a hired County Cop standing around.

Played with the locked down units. Very cool. Can't wait to dump my old Nokia!

I have 5 phones on my Family Plan. Mine will need to jump to two years but the rest do not. Besides the cost of the iPhone, it appears it will only run about $20 more a month. Of course, that is only until the rest of the family pushes for iPhones :)

There may be downward pressure on AAPL initially (due to the big day passing), but this is definitley big time...

chas