By Ian Sherr

Apple plans to close some of its retail stores for at least an hour Wednesday, according to two people familiar with the matter, a gesture that coincides with the company’s planned celebration of co-founder Steve Jobs’s life at its headquarters.

Retail employees were informed that a private company event was scheduled and that the retail stores will temporarily close during that time, according to two people who work for Apple but aren’t authorized to speak on its behalf. One of the employees said the event would last for up to three hours.

Apple hasn’t told retail employees why it plans to temporarily close the stores during normal working hours, though these people note that such closings rarely happen for events other than special product launches. Some retail employees were told about the meeting over the phone rather than by a widely distributed internal message, one person said.

Apple is planning a celebration of co-founder Steve Jobs’s life at its Cupertino, Calif. headquarters Wednesday. Chief Executive Tim Cook said in an email to staff that the event, which comes two weeks after Jobs died following a long struggle with pancreatic cancer, was meant “to take time to remember the incredible things Steve achieved in his life and the many ways he made our world a better place.”

A small, private funeral was held on Oct. 7, followed by a much larger event for coworkers, friends and other industry executives last Sunday.

Apple reiterated that the celebration on Wednesday is for employees only.

(Originally published Oct. 18, 2011 in the Wall Street Journal and on wsj.com.)

By Ian Sherr

The TouchPad is dead. Long live the TouchPad.

Hewlett-Packard Co. said it will temporarily resume manufacturing of its ill-fated tablet computer just 11 days after killing its iPad rival as part of a sweeping corporate overhaul.

The resurrection of the TouchPad follows a spike in demand after H-P, desperate to clear out unsold inventory that had piled up at retailers, slashed the price of the low-end model from $399 to $99.

The decision to discontinue the TouchPad came less than two months after the tablet first went on sale in July, but made little traction against Apple Inc.’s iPad despite an earlier 20% price drop. H-P executives said sales were too weak to justify continued investment.

H-P didn’t say what it would charge for the new batch of TouchPads, but cautioned potential buyers there might not be enough to go around.

“We don’t know exactly when these units will be available or how many we’ll get,” H-P spokesman Mark Budgell wrote on a company blog. “We can’t promise we’ll have enough for everyone.” The company said it is pleased by the response it has gotten so far.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Aug. 31 2011 in the Wall Street Journal.)

By Ian Sherr

People don’t have tablet fever; it seems they simply have a mania for iPads.

The latest evidence: Hewlett-Packard Co. is dropping the price of its TouchPad tablet by 20% little more than a month after it hit stores, as the computer giant tries to goose sales of its answer to Apple Inc.’s iPad.

H-P, Motorola Mobility Holdings Inc. and Research In Motion Ltd. have all jumped into the tablet market this year, trying to close the gap with Apple.

The electronics giant created a multi-billion-dollar business last year when it launched the iPad—and has since seen its profits and market value swell as others have tried to keep pace.

Rivals have been routed so far. Motorola cut the price of its Xoom tablet after its February launch, released a cheaper model and warned shipments will decline this quarter. RIM’s PlayBook was delayed until April and still isn’t being offered for sale by the two biggest U.S. wireless carriers.

Samsung Electronics Co., which was the quickest to market an iPad rival and has shipped millions of tablets based on Google Inc.’s Android software, is now embroiled in a patent dispute with Apple that threatens sales of its Galaxy Tab in most of Europe.

Apple, meanwhile, says it is having difficulty keeping up with demand and selling every iPad it can manufacture. Five months after its release, its iPad 2 can be hard to find in retail stores. The company said it shipped 9.3 million iPads in the June-ended quarter.

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(Originally published Aug. 12, 2011 in the Wall Street Journal.)

By Ian Sherr

Aiming to take a bite out of Apple Inc., Sony Corp. is revamping its retail stores, integrating the Japanese electronics behemoth’s sprawling product line into a sleek and fresh new look.

On April 1, Sony opened a self-branded store, in the high-end Westfield Century City Mall in Los Angeles. The store, with hardwood floors and sleek lighting fixtures, echoes Apple’s airy retail concept.

Sony’s Los Angeles store is the first in a series that is expected to replace the company’s existing chain of retail shops, called Sony Style. The Tokyo-based company hopes the renewed retail presence will reinvigorate enthusiasm for products, like its Vaio laptops and Walkman music players, both of which have been lapped by Apple’s competing devices.

Sony wants the retail effort to set its computers and televisions apart in the minds of buyers. That was one of the strategies behind Apple’s chain of stores, which helped solidify consumer identification of its products.

“It’s not an electronics store,” said Phil Molyneux, president of Sony Electronics in the U.S. “It’s a Sony Store.”

Sony’s new retail outlets mark a complete rethinking of its existing strategy. The roughly 30 existing Sony Style stores in the U.S. are cluttered. Many have dark lighting, resulting in a heavy mood. The new store designs take a different tack.

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(Originally published June 15, 2011, in the Wall Street Journal.)

By Yukari Iwatani Kane and Ian Sherr

Steve Jobs turned Apple Inc. into the world’s most valuable technology company with high-tech products like the iPad and iPhone. But one anchor of Apple’s success is surprisingly low tech: its chain of brick-and-mortar retail stores.

A look at confidential training manuals, a recording of a store meeting and interviews with more than a dozen current and former employees reveal some of Apple’s store secrets. They include: intensive control of how employees interact with customers, scripted training for on-site tech support and consideration of every store detail down to the pre-loaded photos and music on demo devices.

More people now visit Apple’s 326 stores in a single quarter than the 60 million who visited Walt Disney Co.’s four biggest theme parks last year, according to data from Apple and the Themed Entertainment Association. Apple’s annual retail sales per square foot have soared to $4,406—excluding online sales, according to investment bank Needham & Co. Add in online sales, which include iTunes, and the number jumps to $5,914. That’s far higher than the sales per square foot and online sales of jeweler Tiffany & Co. ($3,070), luxury retailer Coach Inc. ($1,776), and electronics retailer Best Buy Co. ($880), according to estimates.

With their airy interiors and attractive lighting, Apple’s stores project a carefree and casual atmosphere. Yet Apple keeps a tight lid on how they operate. Employees are ordered to not discuss rumors about products, technicians are forbidden from prematurely acknowledging widespread glitches and anyone caught writing about the Cupertino, Calif., company on the Internet is fired, according to current and former employees.

Behind Apple stores is Ron Johnson, 52, who J.C. Penney Co. confirmed Tuesday would become its new CEO in November.

Apple’s retail success is fueled to a large extent by demand for the company’s products. Retail analysts say many of Apple’s advantages over rivals such as Best Buy are technical: It sells a single brand, has far fewer products and has only a few hundred stores compared to Best Buy’s more than 4,000. As the company continues to expand, some analysts expect it to face more pressure to consistently execute good customer service. Some former employees say they have already seen the quality of Apple retail staff decline as the retail network has expanded and has fewer enthusiastic fans to choose from.

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(Originally published June 15, 2011 on the front page of the Wall Street Journal.)

By Ian Sherr

Apple Inc. is preparing to offer a package of services aimed at small- and mid-sized business that includes expanded support for company computer systems, part of the electronics maker’s efforts to appeal to users beyond its core consumer base.

Apple Wednesday will unveil “Joint Venture,” a $499-a-year service contract that gives companies using Apple’s computers, smartphones and tablets priority treatment for technical support, training programs and repairs, according to two Apple employees. The employees asked not to be identified because they weren’t authorized to speak about the initiative publicly.

Joint Venture contracts will cover five systems at a business, the people said. Coverage for each additional system—Apple’s term for a grouping of a computer, monitor and iPhone—costs $99 a year, they said.

An Apple spokesman declined to comment.

The introduction of Joint Venture, which comes as Apple is expected to unveil the next generation of its iPad tablet computer, marks the company’s further push into the business user market. Last year, the company began creating specialized teams at its chain of more than 300 retail stores to negotiate pricing terms with business customers. It also began incorporating conference rooms at some of its sleek stores for meetings with business executives.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published March 1, 2011, in the Wall Street Journal.)

By Ian Sherr

Three-dimensional televisions are getting another “D” — discount.

Just a year ago, many 3-D TVs cost $1,000 more than regular sets. But during the recently ended holiday season, the gap halved and is set to shrink further.

Now, television makers, many of which had hoped 3-D would boost sales, are sandwiching the technology into their premium televisions while accepting a smaller premium for it. Like thinner displays, energy efficiency and high-definition, 3-D is becoming a “me-too” feature.

“Prices for 3-D TVs will definitely go down this year,” Skott Ahn, chief technology officer and president of LG Electronics Inc., said at the Consumer Electronics Show in Las Vegas. Mr. Ahn said LG would cut the premium it charges for 3-D TVs by 20% this year and build the technology into all of its new models by 2012.

The muted expectations for 3-D television mark a U-turn from last year’s enthusiastic embrace of the technology. Television makers rushed to bring the third dimension into living rooms after witnessing the success of the movie “Avatar.” Walt Disney Co.’s ESPN unit launched sports broadcasts in 3-D. Even Gucci Group N.V. designed stylish eyeglasses for 3-D viewers, hoping to cash in on the expected popularity of the televisions.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published January 6, 2011, at Dow Jones Newswires and on WSJ.com.)

By Ian Sherr

The holiday shopping season, which starts online Cyber Monday, promises to be very good for Apple Inc.

The Cupertino, Calif.-based consumer electronics giant will likely take advantage of the gift-giving season to flex its muscles, grabbing market share for its popular iPod, iPhone and iPad products.

In particular, analysts say Apple will lock down its dominance of the touchscreen computer market, moving more of its iPad tablet devices through retail partners, including Wal-Mart Stores Inc., Target Corp. and Verizon Wireless. A recent survey by ChangeWave Research found that 9% of holiday shoppers plan to buy an iPad in the next 90 days. Apple has sold more than seven million iPads since the device went on sale in April.

Of course, Apple won’t be the only beneficiary of the season’s spirit. Smartphones are expected to do well as more utilities and productivity apps become available for phones running Google Inc.’s Android operating system, as well as Research In Motion Ltd.’s BlackBerry and Hewlett-Packard Co.’s Palm products. That software, known as apps, gives people a reason—other than making calls—to use their phones.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Nov. 29, 2010, in the Wall Street Journal.)

By Ian Sherr

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Oct. 26, 2010, in the Wall Street Journal.)

By Ian Sherr

Acer Inc. needs a new ace in the hole.

For two years, Acer has relied on netbooks—tiny, stripped-down laptops—to propel growth. The Taiwan-based company’s products, especially its Aspire One, proved so popular, Acer vaulted over Dell Inc. to become the world’s second-largest computer maker by shipments behind Hewlett-Packard Co.

Now the netbook craze is petering out.

After tripling to $14.3 billion in 2009, netbook sales are expected to fall nearly 2% this year, according to data tracker International Data Corp. In 2011, the market is expected to shrink even further.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Oct. 20, 2010, on Dow Jones Newswires and WSJ.com.)