Apple refocuses One to One to cut crowding, raise revenue
With retail employees thin following last year’s right-sizing, customers and employees were finding it increasingly difficult to hook up for the popular, one-hour face-to-face sessions. Thereupon, the mothership is now aiming to right-size demand by limiting who can purchase membership.
IfoAppleStore reports that, as of today, only people who purchase new Macs can also purchase a $99 annual membership to the Apple Store One to One training program.
By limiting membership to Mac buyers, it leaves current Mac owners without a store training option, encouraging them to buy a new Mac to qualify for One to One membership and increasing revenues for Apple. The change also seems to eliminate any One to One gifting options, and the use of One to One training to help convince potential Switchers of Mac’s superiority.
That’s a rather generous assessment of Apple’s intentions and the potential knock-on effects, especially with the knowledge that the company has trimmed more than 10 percent of its retail workforce.
When Apple sneezes…
AppleInsider adds flesh to this story in noting that research shows that about 50 percent of program members sign up for the service after purchasing their Macs somewhere else. Moreover, the company’s roughly 250 retail stores service over 500,000 One to One members, providing more than 644,000 one hour training sessions last quarter, meaning each hour of training provided netted the company about $76.86.
That Apple is trying to limit its service liability to the Mac ecosystem while boosting its share of a shrinking revenue pie is, of course, going to be a bone of contention going forward given that many third-party resellers likely are already stretched thin by discounting and lower volume. Apple, for its part, rarely discounts, and their gimmes are limited to only free shipping and a printer.
Thereupon, third party resellers will likely complain that Apple’s belt tightening is squeezing them at a time they can ill afford even more pressure on revenues.
Should Apple just take it on the chin and absorb One to One costs or are they doing the right thing?
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