Tuesday, March 25, 2014

Apple Doesn't Need to Change

**UPDATED to include Twitter conversation w/ Pendola, Sozzi and CNBC's Jon Fortt on Page Two.

NEW YORK (TheStreet) -- Here's TheStreet's Brian Sozzi riffing earlier on what he perceives as the need for change at Apple (AAPL) retail outlets:

While I tend to agree with Sozzi on most issues, he missed -- badly -- here. He argues the Apple Store needs to evolve in response to what Microsoft (MSFT) and Sony (SNE) have done with their retail stores. Sozzi claims Apple Stores haven't changed since 2001 so this, coupled with whatever Microsoft and Sony are doing, requires a revamp. That trajectory of thought stunned me, especially coming from a guy like Sozzi, who knows retail inside and out. First, what prompts the notion that Apple should act in response to what anybody does, let alone Microsoft and Sony? Here's how things went down: Microsoft and Sony took the Apple Store concept and copied it. Microsoft deserves the most scorn for its patheticism (my word) in feebly mimicking Apple's design. There's no logical reason for Apple to change on the basis of Microsoft's failed attempts to copy it. That would be absurd. And a red flag that Tim Cook has allowed misguided, media-manufactured pressure get to him. Second, just because something hasn't changed in a while doesn't mean it needs to change. We're not talking about the big box or department store concept here. We're talking about hyper-dominant Apple Stores. Just like iPhones and iPads, they work. As such, most any change represents little more than change for the sake of change. Some things just work. They don't need to show dynamic evolution. They just require proper maintenance. When Angela Ahrendts takes over Apple retail she should focus on restoring the company's obsessive attention to detail and filling in dings to its image created and caused by its relatively low-level retail channel "partners." Despite the financial media's desire to fabricate otherwise, there's not a whole heck of a lot wrong with Apple right now. Relative to its counterparts in retail as well as tech, it's humming along. We're all waiting for new Apple products, but that doesn't mean we need to bide the downtime with calls for unnecessary change.

Twitter (TWTR) reaction on Page Two ... 

Stock quotes in this article: AAPL, MSFT, SNE 

Dude. Youre nuts. http://t.co/r8bdBXF7oE RT @BrianSozzi: Memo: @TheStreet #Apple pic.twitter.com/vRPP4FVzv8 Rocco Pendola (@Rocco_TheStreet) March 24, 2014

So, how humans consume content, goods, and services hasn't changed since Apple store design launched in 2001? @Rocco_TheStreet @TheStreet Brian Sozzi (@BrianSozzi) March 24, 2014

@Rocco_TheStreet @BrianSozzi Apple Stores have changed in important ways since 2001; pickup, self checkout, genius appts, classes Jon Fortt (@jonfortt) March 24, 2014 I don't think Apple brought in former pioneering Burberry CEO to sit there and keep the stores the same @Rocco_TheStreet @jonfortt Brian Sozzi (@BrianSozzi) March 24, 2014 2015: you will hear more about a new store prototype @Rocco_TheStreet @jonfortt $AAPL Brian Sozzi (@BrianSozzi) March 24, 2014 Product must dictate presentation. New watch? TV? New layout. Otherwise it's kind of pointless @BrianSozzi @Rocco_TheStreet Jon Fortt (@jonfortt) March 24, 2014 Apple doesnt make its money on streaming content; it makes it by selling hardware. The hardware sells itself. @BrianSozzi @jonfortt Rocco Pendola (@Rocco_TheStreet) March 24, 2014 Well, it looks settled. #Apple retail stores should be the same in the year 2025 as 2001 @Rocco_TheStreet Brian Sozzi (@BrianSozzi) March 24, 2014 If otherworldly performance continues yes. MT @BrianSozzi: #Apple retail stores should be the same in the year 2025 as 2001 Rocco Pendola (@Rocco_TheStreet) March 24, 2014 Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

Stock quotes in this article: AAPL, MSFT, SNE  Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

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