What should you make of recent earnings reports from Apple this past week? It looks like making larger screen smartphones was a good decision from Apple. Fresh off a monster earnings report — including the largest profit of any corporate company in history — Apple sold 74.5 million units in the fourth quarter alone.
While those numbers represent global sales, reviewing a recent Apple press release you’ll notice that 46% of 2014 sales were in the US. Since 2013 Apple has sold close to 350 million iPhones, or roughly 161 million in the US alone.
With an average price of around $500 – $600 in the US, why are people so ga-ga over Apple? The answer is complicated, but if you just study Apple ads you’ll see that they are focusing on a simple message – what they can do and how it makes you feel. What are consumers doing on all those smart phones they take everywhere they go?
According to a Flurry report (Flurry Five Year Report: It’s an app world. The web just lives in it.) people spend on average 2 hours and 7 minutes on smart phones – 80% of which is on apps. While the lions share of that time is on games and Facebook, the fact of the matter is people reach for their phones more than they reach for their wallets.
Where are you on your mobile app strategy?
When you add it all up you can’t afford to ignore such an enormous amount of financial evidence. Most retail industries, such as garden centers, annual sales revolve around a rather narrow window of opportunity. From our anecdotal evidence garden centers do anywhere from 48% to 55% of their total sales for the year in period stretching 6 to 8 weeks. While it is understandable that retailers concentrate their efforts around ramping up for Spring, often times they are too slow to change. What they don’t tackle up to that pocket of time (Spring) has to wait another entire calendar year.
Most people understand the math behind ‘dog years’ (7 human years to every 1 dog year), but few calculate how far they fall behind when they avoid adoption of new consumer trends. If you catch yourself trotting out tired old excuses, then you might run the risk of extinction measured in months.
I have been screaming from the mountain top (Ok, maybe just articles in Today’s Garden Center and rants in my office) that your participation in mobile technology is not a matter of if but when. In recognition of apps, beacons and mobile technology we developed the epunched app platform back in 2012 and every three to four months we have added more functionality – plant databases, synched websites, social media integration, iBeacon capability – in order to help retailers make their business more responsive and relevant to existing and prospective customers.
Will the crazy sales numbers Apple generates convince you that the future is now?
In an industry where everyone wants to be the first to be second, who knows. Change is hard.
We have the plan, and you don’t have enough time.
Contact us today. We’re here to help.