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Jon on CNBC Talking About Apple Retail

2011-05-16
the question is one of the other tech brands need to do to compete in the retail space joining us now is Jason Nolan senior IT analyst with RW Baird and jon rettinger president of techno Buffalo I mean it listen we can go back in hindsight and I was quoted saying some pretty crazy things myself I would regret but I guess I'll start with you John I mean does a Microsoft or an HP have any chance to make inroads here in your opinion sure so the bottom of the line is that their slim to none chance of making these inroads Apple has these halo flagship products that John mentioned you walk into an apple store wanting to get some hands-on time with the new iphone you want to see what the ipad looks like and while you're there you happen to take a look at the new macbook pro they also offer something that the other companies do not that's a vertical integration Apple controls everything from the software to the hardware so they have an ecosystem that works in tune companies like HP and companies like Dell offer fantastic desktop offerings but don't offer that vertical integration and that ecosystem that Apple can offer their consumers Jason are you as negative as he is when it comes to competitors like HP trying to do stores I mean is there any market out there that Apple hasn't dominated where they may be conveyed some inroads III agree I think HP and Dell should continue to use channel the channel for their their their consumer presence HP's 25% consumer Intel's twenty percent consumer they're not sure and the novice is out there that's the best buys of the world that's the typical retail front that's right that's where they should stay I don't think they have the the portfolio's to justify opening up standalone brick-and-mortar locations there are parts of the market that Apple doesn't address well the price sensitive buyers there's not a good hybrid device on the market right for both content consumption and productivity that's another area of opportunity for HP and Dell but I wouldn't say it justifies opening up retail branches to try to move those products what about Microsoft strategy here because it seems like they wanted to and then they're so tepid and their roll out here are these stores and we know what the zune did are they going to fall through with this are they going to bail so if you've ever been to a microsoft retail store they look like Apple stores of multicolored t-shirts it is almost an identical experience with the products being a bit different so you get a very similar experience but you get the feeling that they are following suit and the consumers mind they're following suit with what Apple's done they need something unique and they need to carve out their own niche a company like HP that just bought the palm brand has something like the touch pad coming out the pre three they might have these halo products to potentially make some inroads in the retail market but I do agree their best sticking with the channels that they're in right now my mother was so copying is the sincerest form of flattery great way to grow your business stuff Jason final thoughts here about what anything they could do or is Apple just going to dominate in the retail space is there any risk for Apple to fail in the retail space Apple is going to continue to dominate for buyers that watch this show right people that it can afford to buy those types of products but in a price-sensitive buyer in the States buyers and emerging markets people that want productivity via Microsoft Office synchronization adobe flash a file three USB ports there's an opportunity for other players to enter this market but i think apple continues to dominate the categories they already are dominating although it does need to be pointed out that a lot of people laughed at Apple when they started out so you really don't know what my prayer on the corner but thanks to Jason John for the conversation thank you
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