logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Where is Apple Going with the Burberry Hire?

  +Follow October 15, 2013 12:11PM
Share:
Tickers Mentioned:

On Oct. 15, Apple Inc. (AAPL) announced they had hired away Burberry CEO Angela Ahrendts to head up their retail and online divisions. Ahrendts is credited with turning Burberry’s image around by once again making the upscale brand exclusive and cool. Coupled with the hiring earlier this year of Yves Saint Laurent CEO Paul Deneve, it is looking more and more like Apple is shifting away from the 5C “affordable products” strategy, and towards fully embracing their high-end status.

Why Ahrendts?

Apple’s retail division has been enormously profitable for Apple, yet they can’t seem to pick someone to head it up. Ron Johnson departed in 2011 to begin his disastrous run at JCPenney Company (JCP) . After Johnson left, Apple hired on John Browett as his replacement. Browett’s tenure was ill-received, and his plan to save money by laying off Apple store employees was met with widespread scorn. He was let go in 2012. The role had been left vacant since Browett’s departure.

Unlike Browett, who focused on the bottom line, Ahrendts has a reputation for re-establishing a brand’s fashionable reputation. She engineered a successful breach into the Chinese high-end market, and pushed her company to fully embrace social media. Burberry’s shares have more than quadrupled since 2008.

As a fashion maven, Ahrendts hire also could signify Apple is moving in that direction as well. The company has long been rumored to be developing wearable tech like a smartwatch, so it would make sense to hire a fashion person to oversee diversification into that arena.

But make no mistake: Burberry is not priced for the masses. The hiring of Ahrendts also indicates the market Apple is after.

Altering the Emerging Market Strategy?

Following Apple’s concomitant launch of the lower-end 5C with their standard upper-end 5S, analysts grumbled that the 5C wasn’t priced low enough to grab emerging market dollars. At just $100 cheaper than the 5S, the 5C seemed to split the difference between high and low, and in the end not succeed in either. A low priced 5C was essential to Apple breaking into the teenage and coveted Chinese markets, but at that high a price – coupled with a gaudy color scheme design – the 5C just wasn’t going to cut it.

But Ahrendts’ success in China with a high-end product signals that the key to China’s heart might not be to lower prices on Apple products, but to establish Apple as the tech brand for affluent Chinese. Ishaq Siddiqi of ETX Capital in London said, "Ahrendts knows the emerging market world far better than most executives... that's why (Apple CEO) Tim Cook has chosen her."

The Fashionable Apple

Ahrendts hire has fueled speculation that Apple’s next big product will be a smartwatch. But the question for a smartwatch shouldn’t be “What does it do?” but “How does it look?”

Most speculation concerning the future of Apple products looks at them from a utility point of view. What’s this iPhone’s new feature? How big is the new iPad? But perhaps the next step in the evolution in Apple as a brand (called the top brand in the world) is to worry less about product features and worry more about the brand perception in the high-end world.

 In other words: rather than try to make Apple products that end up appealing to a select few of the all, make products that appeal to all of the select few.

Burberry’s shares on the London Stock Exchange lost 6 percent of their value in response to Ahrendts’ plan to leave. Their loss was Apple’s gain, with shares of the tech giant gaining .82 percent to hit $500.12 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for aapl
Tiernan Ray
18 Dec 14 14:46:02
Jabil Rises on Apple iPhone Quarter; Too Much of a Good Thing? - Tech Trader Daily - Barron's $JBL $AAPL http://t.co/axYwC0kguK
Breaking News
18 Dec 14 14:43:03
$AAPL: Apple Job Posting Suggests Worldwide Expansion of Apple Pay http://t.co/RvGPLNAUej http://t.co/xxXcfq4KXb
Breaking News
18 Dec 14 14:42:04
$AAPL: MacBook Air 2014: 5 reasons why shoppers should not buy a ... http://t.co/9jtOCWALe7 http://t.co/xojdqkB02X
Breaking News
18 Dec 14 14:42:04
$AAPL: Apple selects Brushstroke as its latest App of the Week to go free http://t.co/k2vLBZX4v7 http://t.co/7pYdQqI7V8
TheStreetOptions
18 Dec 14 14:40:13
@TheStreetOpts: Follow us, we don't bite, promise! We will however keep u entertained while trading $spy $aapl http://t.co/emyCXG0GTo
Media Sentiment
18 Dec 14 14:39:50
$AAPL received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 449
Trevor
18 Dec 14 14:39:23
RT @JTfreeze14: Fun day today with $AAPL and $LNKD calls
Dave Neville
18 Dec 14 14:35:28
Swiss Watchmaker Gets Serious About Apple Watch Threat http://t.co/3niBuTcY6P $AAPL
jonas quinn
18 Dec 14 14:35:27
$aapl closed at its #HOD $112.65
Todd Sullivan
18 Dec 14 14:35:23
McDonald’s increases sales by beaming offers to smartphones in iBeacon pilot http://t.co/tHCHnqjH7K $AAPL $MCD
Ravi Romo
18 Dec 14 14:35:04
$aapl==>> RT @businessinsider: Here's what people don't get about Apple Pay: It's not just changing payments http://t.co/qa1a9VQadH
Breaking News
18 Dec 14 14:35:02
$AAPL: How to Make Your iPhone Charge Wirelessly http://t.co/rLzaqIZSN9 http://t.co/MqimZWdgZZ
Breaking News Now
18 Dec 14 14:35:02
$AAPL: Here's What People Don't Get About Apple Pay: It's Not Just ... http://t.co/BeCJ0pBgxL http://t.co/C0yUZoV4za
TheStreetOptions
18 Dec 14 14:34:35
This is the life. $spy $aapl $dia http://t.co/xQsDuqRn9T
CC Lagator
18 Dec 14 14:34:29
The irony is if you did the $AAPL collar you could have bought more shares for your fake hedge fund at $107 http://t.co/dsoOzF0awN @Bestscrt
jonas quinn
18 Dec 14 14:34:20
What the fuck is this Deezer clogging up the $aapl stream? Get the fuck outta here!
Dave Neville
18 Dec 14 14:34:03
Apple No. 1 brand in wearables, only it doesn't have one yet http://t.co/qYZwW6RNJU #IBDBlogs via @IBDinvestors $AAPL $GOOGL
Breaking News Now
18 Dec 14 14:34:03
$AAPL: Apple's Cook makes 'substantial' donation for gay rights in US South http://t.co/1f7bc8Cvo1 http://t.co/jlzr1Vhine
Breaking News
18 Dec 14 14:34:02
$AAPL: Undercover video shows alleged worker rights violations at Apple ... http://t.co/T95D2rurbE http://t.co/8mYgmqV6XR
TV_Trading Ideas
18 Dec 14 14:32:28
AAPL broke downtrend channel $AAPL http://t.co/hhUGszty8m
Breaking News Now
18 Dec 14 14:32:03
$AAPL: Diagnose your kid's ear infection with your iPhone http://t.co/TnwuKOPi1O http://t.co/VpaAITuJxz
David Durand
18 Dec 14 14:31:12
$AAPL Pay: "@ToddSullivan: Apple Pay Now Supports Cards Representing 90% of U.S. Credit Card Purchase Volume http://t.co/nt3Ln27WRt"
AAPL Stock Alerts
18 Dec 14 14:30:02
Apple's Share Repurchases Have Benefited Shareholders: Follow-Up http://t.co/0LZc7aLy7S $AAPL
Chayton Falke
18 Dec 14 14:30:02
Free Video: Understanding The 30-minute Market Update http://t.co/2MCk1cEiiS #trading #startups #stock $AAPL #money #investor #angel
Tech Alerts
18 Dec 14 14:30:00
Apple And Amazon View Failure Very Differently http://t.co/nQMdV30XVS $AMZN $AAPL
TwaQ
18 Dec 14 14:28:45
RT @s_s_o0: $ADBE $LULU $AAPL $GOOGL $FB $TWTR $YHOO $BBRY #option #اوبشن اللي يبي دوره في الاؤبشن ريتويت نشوف العدد يشجع
PennyStock Zone
18 Dec 14 14:28:41
Tip #4 How to identify a HOT SECTOR? http://t.co/cFuOlMXLZp $AAPL $ANF $NTLS $KOLD $BOBE
MacHash
18 Dec 14 14:27:16
Fruit Ninja and all other Halfbrick Studio games are free right now http://t.co/BOpFuEjMjw #iDownloadBlog $AAPL http://t.co/U5JpQBqWui
Breaking News Now
18 Dec 14 14:26:03
$AAPL: Huntington to offer Apple Pay for customers http://t.co/c8u1ImFmcz http://t.co/3Wn5Ybzqif
Mohawk Investor
18 Dec 14 14:25:31
In this crazy 2 days this how I feel conquering the stock market. $AAPL $BABA $SPY $FB $TSLA raining $$$ money again http://t.co/N5QzHz9sB8
Astrid Walton
18 Dec 14 14:24:21
Would you like great research on stocks $AZO $NOC $ALTR $AAPL #investing http://t.co/gBANwSjgIE
Breaking News
18 Dec 14 14:22:03
$AAPL: BestRa1n Jailbreak IMEI Unlock iPhone 6,5S,5 iOS 8.1.2 Permanent ... http://t.co/jxNF7R5NIt http://t.co/AweZNh1NcC
Leighton Darby
18 Dec 14 14:21:59
Great #Stock Newsletter you must have $PBF $CME $ENR $AAPL #wealthmanagement http://t.co/2K6XJHtyui
Bertha Diaz
18 Dec 14 14:21:25
#Stock Watchlist you should be looking at $XOM $CBST $LM $AAPL #Research http://t.co/RrPrUTZlvK
Kimberlee Kerns
18 Dec 14 14:20:58
Are you hanging on to $JBL $ONXX $SNI $AAPL Click http://t.co/ZkQXpvep28
Scott Smith
18 Dec 14 14:20:27
Setups I liked today that we'll be watching tomorrow $VSLR $CVC $NLNK $W $OPK $AAPL $CMG and $SVXY More setups I like http://t.co/sHmewJPknQ
lexinerus
18 Dec 14 14:20:03
ReTw EVdeals1: Could Tesla Model S Get A Boost In Range — And Sales? http://t.co/zULou7njVf #IBDNews via IBDinvestors $TSLA $AAPL $MBL...
Th€ a¢¢omplice™
18 Dec 14 14:19:33
There was a 3rd Apple founder, Ronald Wayne, who sold his 10% stake for $800 in 1976. Today his share would've been worth $65 Billion. $AAPL
Arielle Messer
18 Dec 14 14:18:46
#Stock Watchlist you should be looking at $APA $T $FNF $AAPL #economy http://t.co/Y4tmENxGCh
ProVesting
18 Dec 14 14:18:08
$AAPL $MSFT $QCOM: Sino Turbulence Shows A Failed State In Motion http://t.co/3OWsJYznJC http://t.co/Zs7TLe7mLD
Breaking News
18 Dec 14 14:18:03
$AAPL: Toca Kitchen 2 by Toca Boca AB http://t.co/I0MNzqbjBL http://t.co/bC5783tUuu
TheStreetOptions
18 Dec 14 14:17:49
If we really did profit from our mistakes, I’d be extremely rich by now. $aapl $nflx
BUZZ Just-In
18 Dec 14 14:17:04
Track trending assets in 1 watchlist $NKE Dow Jones $CSCO $AAPL $SPX http://t.co/NeaOJTYzB1
Breaking News
18 Dec 14 14:17:03
$AAPL: Apple Spotlights the True Story Behind 'The Song' http://t.co/WCIjTBXtFO http://t.co/Fi7HKA3JO0
Breaking News Now
18 Dec 14 14:17:03
$AAPL: Here's What People Don't Get About Apple Pay: It's Not Just ... http://t.co/9vuQTFcI8u http://t.co/oP4akFkavU
srockets
18 Dec 14 14:16:37
@elad3 AFAIK, OS X won't recognize your signed binaries as signed until you pay $AAPL.
11.00
18 Dec 14 14:16:18
RT @s_s_o0: $ADBE $LULU $AAPL $GOOGL $FB $TWTR $YHOO $BBRY #option #اوبشن اللي يبي دوره في الاؤبشن ريتويت نشوف العدد يشجع
OIC
18 Dec 14 14:15:11
Today's Most Active #Options http://t.co/L3fW5mB7ig $SPY $SPX $AAPL $IWM $QQQ
Breaking News Now
18 Dec 14 14:15:02
$AAPL: Jabil Rises on Apple iPhone Quarter; Too Much of a Good Thing? http://t.co/I0MpsDxQyD http://t.co/qKFrFUJ0At
riyadh
18 Dec 14 14:13:19
RT @s_s_o0: $ADBE $LULU $AAPL $GOOGL $FB $TWTR $YHOO $BBRY #option #اوبشن اللي يبي دوره في الاؤبشن ريتويت نشوف العدد يشجع
				
				
  +Follow October 15, 2013 12:11PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.