Apple`s Distribution Strategy

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APPLE Distribution strategies are a major key to success, which are maximizing sales and profits. Apple is utilizing from distribution strategies by using multiple channels, especially including direct or semi-direct sales and different distribution channels for different products. By pursuing this strategy, Apple increases its market coverage, lowers channel cost and provides more customized selling. Apple has 301 retail stores in ten countries and online stores serving to 36 countries where hardware and software products are sold. Moreover, it has 3000 retailers and 320 large distributions. Apple has been slowly adding other distribution channels with high sales volume. Selective distribution revealed itself at this point. A small number of retail outlets are chosen to distribute the products. For instance AT&T, Best Buy and Wal-Mart are selling Apple products in their stores. All of the phones require a new two-year service agreement from AT&T or a qualified upgrade. AT&T is the only provider of the iPhone in the US. The smartphone achieved big success in sales. But still AT&T was criticized because the iPhone did not cover in major urban areas like New York City. Apple also has its network of stores, which gives it a major advantage in distribution. Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world. Apple provides Apple Mac-expert retail floor staff to selected resellers' stores. It has entered into strategic alliances with other companies to co-brand or distribute Apple's products and services. For example, HP is selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops. Apple has also increased the accessibility of iPods through various resellers that do not

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