Analyst Answers Retail Questions

May 7, 2006

In a research note that Piper Jaffray & Co. financial analyst gene Munster issued to clients this past week, he answered 22 questions about Apple’s business, including, “Why are the Apple retail stores so unique?” Munster explained that, “Apple is hoping the real relationship with the customer starts when the customer is buying the product and is at check-out, while with other retail stores, the relationship with the customer ends at check-out.” He says that ProCare is an example of one way Apple encourages visitors to return to the stores and to generate revenue. He expects a greater emphasis on Switching in Apple’s stores in the coming months, and a more even mix of Mac vs. iPod advertising. A full recap of Munster’s clients-only advice is on the AppleInsider Web site.

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