Attach Rates Revised for Apple Stores

April 7, 2006

Apple has reportedly tweaked the metrics is uses to guage employee and store performance to put more emphasis on ProCare service and less on .Mac sales. Previously Apple’s bonus and performance program set attach rates of 60% for the AppleCare extended warranty, 40% for .Mac accounts and 20% for ProCare. Attach rates indicate what percentage of computer sales are accompanied by the sale of other products. Employees who want to demonstrate excellent performance are expected to meet or exceed these rates. In the lastest revision, Apple did not change the attach rate for AppleCare, but did make changes to the other two: they lowered .Mac from 40% to 30%, and increased ProCare from 20% to 30%. There have been persistent reports that only 40% to 60% of .Mac accounts sold are ever registered by buyers, perhaps leading Apple to de-emphasize sales of .Mac. Increasingly crowded Genius Bars may have likewise encouraged Apple to convert more computer buyers to ProCare, which offers improved service benefits. [see previous]

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