This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft's Retail Strategy Absolutely Stinks

NEW YORK ( TheStreet) -- Over the weekend on his Twitter feed the great Herb Greenberg of CNBC said:

I have always wondered why Apple (AAPL - Get Report) slums it by allowing Walmart (WMT), Target (TGT) and Best Buy (BBY) to sell its premium products at all, let alone at a discount.

Amazon.com (AMZN) makes slightly more sense given its dominant online presence. Plus, despite the media-driven meme of fierce competition between the two companies, I reckon Apple and Amazon have a partnership, even if it's unspoken or merely the result of a Steve Jobs-Jeff Bezos handshake.

In any event, it would be most excellent to get your hands on the broken down numbers: Apple product sales at Apple Stores, at Apple.com, at Amazon.com and at Walmart, Target and Best Buy. Good luck getting that data. Apple will never release it. And if a partner did, there would be trouble.

That said, I bet the numbers flatter Apple. They would also help explain why Microsoft's (MSFT - Get Report) retail strategy stinks.

See my article, Apple, Tesla Completely Embarrass Microsoft, for part one on why it stinks.

But set aside the fact that Microsoft stores look like competitive spoofs designed by Apple itself. Even if Microsoft did something wholly original from a cosmetic standpoint, its retail strategy would still fail miserably.

It's worth paying an extra 5% or whatever to make your iPod, iPhone, iPad or Macbook purchase at an Apple Store. There's something to be said for paying for a trademark experience and excellent customer service before, during and after the sale.

People do this; in fact, I'm willing to bet that between physical and online, Apple sells, at minimum, 80% to 90% of its product by itself. Consumers no longer feel intimidated walking into an Apple Store; they feel welcome and, maybe more importantly, cool.

Over the weekend, I stopped by Microsoft's "pop-up" store in Times Square. There's nothing . . . good . . . to be said for that experience.

Relative to the Apple Store, this Microsoft outlet was void of bodies. At times, it got semi-crowded, however there was no steady flow. Mind you, it occupies a tiny space. Apple could never operate a store that small, pop-up or not, in a random city let alone Midtown Manhattan.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.25 0.00%
MSFT $40.72 0.00%
FB $81.66 0.00%
GOOG $542.56 0.00%
TSLA $187.59 0.00%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs