My thoughts:

When Apple was a computer company it tried to sell its products through companies like Harvey Norman and Myers but this failed miserably. The sales people were largely unfamiliar with the product and they were just as likely to deride the Mac and encourage you to buy a PC.

Apple wanted to control its sales so it developed its web shop and started to open its own stores and closed up its outlets in many stores.

Then suddenly something changed - the iPod. Apple became an electronics focussed company not just a computer company. Slowly iPods begun to be sold again in Myers and Harveys. The iPhone broadened Apple’s appeal through the halo effect and the Macs became cool products that virtually sold themselves through slick styling, exquisite OS and sound engineering.

Dell proved you can become the largest PC company in the world through online orders.

Will Apple close up its third party retail storers and rely just on the Web store and Apple stores? Not in the near future. The bubble hasn’t burst and Apple will continue to expand through its 3rd party retail stores. Apple will continue to innovate and introduce other products besides computers.


                      Regards,

                      Eugene

                  

On 07/03/2011, at 9:12 PM, cm wrote:

Hi all,

Just my take on this bet. Apple has been working hard to cultivate large chains as partners. In the US it is Best Buy and Walmart. There are only about 320 Apple Stores worldwide with around 240 in the US! Australia has 10. These numbers are way to small to be the only customer contact outlets for Apple.

Apple tends to favour retail chains that will follow the "store within a store" concept -- which is a small area of floor space solely with Apple products and Apple style display tables. My guess would be that Apple is looking for longer term relationships with amenable retail chains and has no intention at all of cutting these relationships off in two years.

As for the bet itself, it has been limited to JB Hi-Fi, not to all retail outlets so maybe Kogan know of some unfavourable aspect of JB Hi-Fi's handling of Apple products or of its relationship with Apple. I think more likely Kogan is banking on the fact that Smart will not accept the bet. If Smart has no ongoing dispute with Apple I would advise him to accept the challenge! :-)

Cheers,
Carlo

On 2011-03-07, at 16:59, rb...@iinet.net.au wrote:

At my conference they told us from 2003 Apple began the Revolution in the music industry with the iPod then iTunes store.
iTunes now accounts for a whopping 40% of (world?) music sales!

2008 was the phone revolution (iPhone)

and 2011 is about to usher in the PUBLISHING revolution - iBooks store will change the publishing world.

Blitto



On Mon Mar 7 16:36 , Stuart Evans sent:


I think all vendors must be tempted...but there are risks.
I think it will happen, but I would guess more at 5-7 years.
Would a full online offering also mean a return to "base" warranty?
Lots of crystal ball stuff.

But... There are lots more important things to focus on....




On 7/03/11 4:09 PM, "Daniel Kerr" <wa...@macwizardry.com.au> wrote:

>
> LoL I was just reading that myself,...right before you posted it,..lol.
>
> Yeh,..hmm,...30% of JB's sales?
> Wouldn't be surprised to see more AppleStores and less of the "others".
>
> What's that saying,..what a wicked web they weave? Lol,...
>
> Now, where did I leave my $1,000,000 so I can join his bet. Oh wait,..I'm
> short by about $999,950...oh well. Back to the drawing board.
>
> Kind Regards
> Daniel
>
>
> On 7/3/11 4:02 PM, "Stuart Evans" <stuart.ev...@t4.com.au> wrote:
>
>> Hi all,
>>
>> Interesting article...
>> http://www.news.com.au/technology/ruslan-kogan-challenges-jb-hi-fi-chief-to-
>> 1m-bet/story-e6frfro0-1226016953150
>>
>> What do you think? Is he right? 3 years? Less or more?
>>
>> Hopefully for some of us he loses his bet!!!! ;-)
>>
>>
>> Warm regards,
>> Stuart
>>
>>
>>
>>
>>
>>
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> ---
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> MacWizardry
>
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>
>
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