Apple’s products are often innovative, unique, and successful. Why? Because the company has never been afraid to take risks and experiment. But Apple has experimented with more than just their product line. Their marketing strategies and business decisions have often been criticized, but no one can say they weren’t bold or daring. Many different Apple ideas have certainly seemed radical at the time, and some were classified as ridiculous or business-ending at the time. In retrospect, Apple has been often ahead of the times, especially when the company was led by Steve Jobs.
Apple’s experimentation and bold direction were obvious from the start. While the PC market became full of competitors of clones, Apple kept its operating system to themselves and, with the exception of a short period of time, has never licensed it to others. This would, at first, seem to put them at a disadvantage since it meant Apple was the first and last source for Macintosh computers. This put a limit on their supply, and many thought it would also lead to stagnation or a lack of innovation. The iPod Mini was one bold experiment that paid off. On paper, it seems like a failure: yes, it’s smaller, but it also holds less music. Why would customers purchase a device that holds less data and was only slightly cheaper? But the fact that the iPod Mini was available in different colors and was smaller made it popular, and Apple saw another one of its innovative ideas flourish.
One of Apple’s most controversial decisions had nothing to do with products. In 2001, the company opened their first Apple Store. At the time, the technology industry was beginning its downward slope, and people were hailing Dell’s online-only store as the computer-purchasing method of the future. There was little overhead to such a method, but Apple Stores were going to cost the company much: renting or buying physical store space, hiring employees, providing benefits, and shipping products to these stores were just a few of the costs Apple was going to have to deal with.
Despite the expense, Apple didn’t rush headlong into creating Apple Stores. In fact, the entire move was carefully planned and weighed. The philosophy behind Apple Stores was that they weren’t simply going to be another place to buy electronics. Instead, Apple Stores were designed to be synonymous with Apple products.
What set Apple Stores apart from other brick and mortar computer stores? Several things. While the company didn’t have a huge number of products (the iPod wasn’t yet released when the first Apple Store opened), they did structure their store differently, and this unique approach got people in the door. Tech support and repairs could often be done in the store, but instead of being done by techs or service personnel, they were handled by “Apple geniuses” and done at a bar.
Even with this unique approach, the hard truth was that Apple computers only held about three percent of the overall personal computer market. Why would people come to the Apple Store if they didn’t have a Mac? Curiosity. The unique look Apple Stores had, along with word of mouth, brought people into the store. These non-Apple customers wanted to see what the fuss was about. Less than a decade later, Apple’s bold experiment seems like a no-brainer, and Apple Stores are now one of the highest-grossing stores in the retail industry.