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iMac Launch Report from Santa Clara
Written by Brett Harris

Bret Harris sends a detailed report of the iMac launch with notes on sales figures, USB availability and more. Love the comment at the close of the article :-)

"Mike,
I was one of several hundred User Group members that volunteered to help Apple with the iMac Launch this past weekend. Note that the following is my opinion and is influenced by my experience as a Mac Evangelist since 1986.

First of all, if you haven't already heard, this past weekend's iMac Launch was hugely successful. On Friday at Midnight, over a dozen San Francisco Bay area retail stores opened to sell the iMac including all 10 ComputerWare stores and the Elite Computers store in Cupertino. Most of these customers showed-up to take possession of pre-ordered units (not emphasized in press). It was reported that the pre-orders, in large part, were 100% pre-paid, not just the required $250 to hold. All week Apple was milking the local press for all it was worth floating press releases for pre-order figures, etc.

The CompUSA stores here did not participate in the Midnight Madness festivities. I worked at the CompUSA in Santa Clara (San Jose) along with three other MUG members (2 of which were previous Apple Employees, talk about hard core loyalty) and a contract sales winnie on the morning shift. The Apple provided software demos were pretty good (B+). Unfortunately, there was no internet connectivity for the sole iMac on demo [There was at the Richmond iMac demo I reported on in Sunday's news-Mike]. After all, this was the i (internet) Macintosh that came loaded with Explorer, Netscape, Earthlink, and super easy internet set-up software.

Because of limited launch supply of the iMac from the Sacramento assembly facility (running 3-shifts currently with managers on the assembly line), the strategy was to un-box only a single unit at each store for demo purposes (and sell all the rest). This relegated the four MUG members to the position of shills (probably the intended use anyway). No Apple employees showed-up to help but they may have been working weekend delivery truck duty. The CompUSA sales people were periodically calling-in to report sales and remaining stock quantities (inventory management was tight). Only about 8 to 10 boxed iMacs were stacked in the isle at any given time (always appeared that there weren't many left). This had the affect of eliminating any sense of procrastination on the part of buyers. Once somebody staked a claim on a box (impulse buying), a CompUSA sales guy would hoof it out to the parking lot to retrieve a shopping cart so they could safely transport their booty to checkout. It was reported that some retailers were only allocated 10 or 20 iMacs but I estimate that this CompUSA location sold about 80 over the two days. I believe that more iMacs were sold at this store Saturday and Sunday than all other Wintel desktops combined. CompUSA headquarters was reported to have been "thrilled" by Saturday sales across the United States. I did not witness the sale of any other Apple desktops or towers during the weekend. The concentrated retail channel strategy seems to be paying off as a big win for all parties including the consumer. All retailers have stuck to the firm (good margin) list price of $1299 for the standard iMac and Apple (evidently) will refrain from offering the iMac through the online Apple Store for two months further incentivising the retail channel to push the iMac hard and fast. Many retailers offer special promotions that add value to the iMac purchase such as additional 32MB of memory free, for example. ComputerWare offers Performa Users, a targeted customer for the iMac, a trade-in value of about $225 for their old 68000 Mac Performa. There weren't any third party vendors demo-ing anything during the launch, as Apple had desired and planned for, but this was because USB adapter kits and USB peripherals with Mac Drivers aren't available yet. The only printer that will work with the iMac today is the Epson Stylus 600 but evidently there are problems with the driver that currently ships with the $50 USB interface kit (oops). CompUSA did not think to hook-up their demo Stylus 600 to the iMac. Also, the iMation SuperDisk was not available for demo or sale at the store, which could have helped with the "floppy question". Floppy dependent Performa users (targeted for migration to iMac) lacking etherent are stuck trying to engineer a workable scheme for migrating to the iMac.

So why did Apple launch the iMac now? The answer is timing. It had to be launched now to catch "new school year" sales. Based on what I witnessed, here are my estimates for iMac sales thus far: 50/50 Male/Female buyers, mostly middle to upper class White and Asian background, 0% corporate sales, 50% of sales to a mixed-platform household, 20% Mac users who defected to the dark side and are now coming back home, 60% of all sales justified as "for use by students in new school year", 0% sales to experienced WINTEL users (we had a bouncer at the door for these guys anyway), 15% of sales to first-time/unsophisticatted personal computer users (retirement age) for purposes of easy internet access (finances tracking).

Some customers came from as far as 150 miles away because other stores had sold out and they were directed to this store. Although unconfirmed, it was reported that stores that ran out of floor stock dipped into pre-sold inventory to maximize launch sales. So if you paid for your iMac several weeks ago and did not race in to pick it up, you be waiting a few more days for it (relax, they'll make more).

Finally, in the rumor department, Apple may come out with varied color schemes of the iMac (next year?), mysterious expansion slot to be explained, possible big brother 17" model. My favorite experience of the two-day event was when an elderly man made his way in the front door, past the iMac demo croud and past a line of iMac buyers winding toward checkout to me, wearing my Macintosh "Think Different" polo shirt and asked "This is my first time in a CompUSA store, do you guys sell computers other than Macintosh?".

Cheers,
Bret Harris"

I posted a report w/photos of the iMac launch at the Richmond, VA CompUSA store. I got there late (1PM) and hear that the real party was going on at another Richmond Mac dealer. Still a good turnout and high interest in the iMac.


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