Opinion: An Apple Move to Wal-Mart is Bad Business
9:50 am, May 19th, 2009, Lonnie Lazar
Credit: Dystopos, used under a Creative Commons license.
Wal-Mart is busy re-vamping the electronics departments in 3,500 of its giant retail stores, in a move to both fill the void left by Circuit City’s recent bankruptcy and to compete with another electronics mega-chain, Best Buy. But some believe it’s also actively lobbying Apple to become a distributor for more than just iPods and iPhones.
Bentonville, Ark.-based Wal-Mart is widely perceived as a low-end discounter whose vast properties are largely filled with the cheapest, most useless junk Americans could dream of importing from China, which makes Barclays Capital analyst Ben Reitzes’ opinion that Wal-Mart is angling to one day carry Macs all the more disconcerting.
Speculation over Apple’s interest in expanding its fewer than 10,000 worldwide distribution points comes amid recent data indicating that Microsoft’s advertising blitz over the past year has succeeded in re-positioning devices that run the Windows OS as value propositions in the computer world.
But this Mac user wonders whether a move into retail’s hoi-polloi might cost Apple more in the long-run than it would gain from the increased revenue that would surely come from the greater retail exposure a distribution deal with Wal-Mart could represent.
There has always been something satisfying, from the user perspective, about the panache of owning an Apple product; in many respects – as mythical as the concept of an “Apple premium” might in reality be – some Apple owners believe they get more for their money, and are willing to pay for the sense of exclusivity the company’s limited distribution network provides. Similar perceptions have maintained the public’s high regard and brand loyalty for companies such as Bose and Bang & Olufsen for years.
If the demands of a rebalancing global economy and of shareholders’ inexhaustible lust for profits cause Apple to seek a different path it would be a real shame, and likely signal the beginning of the end for the company that once implored the world to Think Different.
Posted by Lonnie Lazar in Apple, Opinions, Retail Stores | Comment on this article
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LoL. Look around you. Every Tom Dick and Harry has a iphone, ipod, macbook etc. They’re not exclusive. They’re not distributed in limited supply. You’re really not that special… Its fanboy statements like this that give Mac users the elitist asshole stereotype that, unfortunately, turn out to be true more often than not. Its a computer man. Accept it. You’re buying mass produced consumer electronics. Same as everyone else. you’re just choosing to pay more for it.
Nathan, on May 19th, 2009 at 10:26 am
I like the article, well written, and you express your opinion clearly and simply. Just one thing I noticed:
“But this Mac user wonders whether a move into retail’s hoi-polloi might cost Apple more in the long-run than it would gain from the increased revenue that would surely come from the greater retail exposure a distribution deal with Wal-Mart could represent.” That is a bloody long sentence!
Austin, on May 19th, 2009 at 10:33 am
Elitist much?
Chuck, on May 19th, 2009 at 12:04 pm
Hey Nathan, every heard of paying for design?
No? Try changing that t-shirt and jeans.
Yes? Well, then you already know, that your next computer is a Mac. Stop resisting. Why not get the best?
And no, not even Sony Vaio come close. Period.
Nash, on May 19th, 2009 at 12:10 pm
The closest Apple store from me is an hour drive. I have no problem with Apple marketing entry level Mac computers at Wal-Mart if the displays are properly managed. Too often one sees computer sections in these box department store with frozen screens and key caps popped off which is poor advertising for Apple’s products.
Rick, on May 19th, 2009 at 12:14 pm
Nathan, your bratty little comment ignores that Macs are simply more pleasurable to use than PC’s, while accentuating a fact that I’m sure you’ve heard often: you’re a dickweed.
The Idiot, on May 19th, 2009 at 1:46 pm
Pleasurable or not, they’re not exclusive. If I read the article correctly, the author was in no way championing the pleasure of using a Mac. They were championing the fact that they felt cooler than the poor kids for being able to have one and didn’t want their precious Mac being sold in a place where non elitist Mac fanboys hung out (“…willing to pay for the sense of exclusivity the company’s limited distribution network provides.”) . This is what I was speaking to. It is a computer. And, as such, should be sold in a place that sells computers. Let the masses decide which is more pleasurable. Its not an exclusive club. you’re not special for owning one. I thought this point was made clearly, but evidently not.
Nathan, on May 19th, 2009 at 3:30 pm
Does your iPhone feel cheap? Walmart sells iPhones. What about Apple positioning themselves to be one step closer at beating out Windows? What a better way than to make them more accessible. Closest Apple store I have is 1.5 hours, not convenient. Best Buy fills the void in the mean time.
Biggest challenge Walmart will have it the fact that they are a “self service” retailer. Their employees don’t normally have a lot of knowledge in the products they sell. They function more as shelf stockers and game case unlockers.
Jason, on May 19th, 2009 at 4:42 pm
Who shops at wal-mart? I thought that store was just for middle America rednecks. Apple would be wise to stay as far away from that store and demographic as possible.
vopat, on May 19th, 2009 at 6:11 pm
Thank you, vopat, for proving my point exactly…
Nathan, on May 19th, 2009 at 8:59 pm
Sorry, if i can get the same exact product at Walmart and save a few bucks, I will! If you want to be $50 for an HDMI cable at Best Buy, have at it. I’ll save $25 and put it towards my next MacBook.
Jason, on May 20th, 2009 at 4:42 am
The fascists in southern or middle America are not a good demographic to target. Let the White terrorists from there like Mcveigh use an MS computer. I never said anything about Apple being cooler than anything else.
Vopat, on May 20th, 2009 at 11:45 am
lol. vopat pwned me. The choice of computer ownership now lies in the political spectrum to which one aligns themselves. No more shall a person choose the operating system platform they want simply based on preference, performance, or ease of use! We now chose based on our political standing!
A friend showed me this article to show me how right I was in the generalization of Mac owners. vopat, you have taken it to a whole new level and for that, I salute you.
I now understand the demographic of cultofmac!
Nathan, on May 20th, 2009 at 8:07 pm
That said, I enjoy using a Mac. I will be buying a second Mac soon. I think the operating system has many admirable qualities and I enjoy using them. I’ll just know to steer clear of here to get my Mac information. I think there are many well informed, intelligent Mac users out there. But the meat of this article and the responses given show me that this is not the place to go for intelligent conversation concerning the Apple/Macintosh platform.
Just another Mac fanboi “we rule, PC sucks” website. Fair enough.
Nathan, on May 20th, 2009 at 8:21 pm
I too am concerned about Apple moving onto the shelves at Walmart. I wonder if Nathan has ever been to an Apple Store. One thing I noticed about buying a Mac was the experience (for me anyway). The folks at the Apple store really went out of their way in making sure I got exactly what I needed. Can the Walmart workers do this? Yes, Macs are more expensive, all the more reason for people to KNOW what it is they are selling, or buying. Walmart does not have the “know-how” when it comes to this. You want cheap products and a shopping experience where you are more often than not left scratching your head with questions than getting the help you need? Then go to the folks without college degrees at Walmart. I prefer to go downtown to the shop with all the glass windows and the large white glowing fruit. See you at the Apple Store GENIUS Bar.
And no, I a do not work at an Apple Store.
William, on May 23rd, 2009 at 12:06 pm