A new analysis suggests that Apple CEO Tim Cook’s goal of selling as many as half of all iPhones through the company’s retail stores may be a lofty, yet unattainable goal.
The company has recently begun a retail initiative in hopes of boosting sales of the iPhone at Apple Stores, rather than having customers obtain their handset through carrier partners or smartphone resellers.
One approach being attempted by the company has its retail employees talking to customers about upgrade opportunities if they bring in their iPhone to a Genius Bar for repairs. Currently, about half of all iPhones that need repair are serviced at a Genius Bar, and Cook would like to see sales figures match that share for Apple retail.
However, according to new data from Consumer Intelligence Research Partners, via AllThingsD, Cook’s goals may not be realistic. CIRP says that’s because Apple’s retail locations already have heavy traffic, and an influx in sales might not be attainable without a major increase in the number of both locations and employees.
“We don’t see how their mostly jammed stores can handle more customers, sales associates and inventory,” CIRP co-founder Michael Levin said to reporter John Paczkowski.
CIRP data shows less than 15% of all iPhones sold in the U.S. are currently sold through Apple retail stores. Around 30% are sold through #1 partner AT&T, while Verizon sold just over 20% of all iPhones as of June 30th. Carriers T-Mobile and Sprint are neck and neck with electronics retailer Best Buy at around 10% of iPhone sales.
CIRP also says that 90% of first-time iPhone buyers do so at a carrier store, or reseller.
Apple also hopes to increase the iPhone’s “halo effect” by driving more sales of the device through its retail stores, and hopefully exposing the customers to its other products.
