T.J. Maxx and Marshalls Selling iPad for $399 ($100 off)

This one is fun (and weird).

After calling a number of T.J. Maxx stores. Here's what I know.

Apparently a memo was sent around this morning to T.J. Maxx store managers indicating select stores were receiving iPads.  Not every store was on the list.  One manager that I talked to said it seemed like less than 50% of stores in her state got the single shipment of 10 iPads.  No word on if more shipments were coming. Selling price was $399 ($100 off).

By the way, one store had already sold their 10 iPads, another store had sold 5, both saying they are getting swamped with callers and people asking if the "iPad rumor" is true.

Online reports also say Marshalls (T.J. Maxx's sister store) is selling iPads.  The Marshall locations that I called had no clue what I was talking about.   It was sort of weird asking...excuse me, do you have iPads at Marshalls this evening?  The answer was hmmm no, we don't.  Apparently Marshalls in Florida have iPads in stock.

What is going on here?

T.J. Maxx and Marshalls are both U.S. nameplates for TJX Companies.  TJX is known for selling off-price well-known consumer brands ranging from clothing to home goods.  It would be very hard to believe that Apple is involved in some arrangement with TJX to sell iPad for $399.   If someone can buy a $399 iPad at T.J. Maxx, those $499 iPads at the Apple Store, Walmart, and apple.com now look a whole lot more expensive.

One theory I can think of is that TJX simply came in contact with a shipment of iPads and saw an opportunity to really cause a stir.  There are 900 T.J. Maxx stores in the U.S.  Assuming 350-400 of these stores got the 10 iPad shipment, we are talking about 3,500 - 4,000 iPads (then add in Marshalls).  Rounding up,  maybe we are talking about 5,000 - 10,000 iPads involved in this situation (assuming there is only one shipment cycle).

Maybe TJX had the opportunity to purchase 5,000 iPads from a third party for retail price and is now discounting each $100 to simply create a superb marketing campaign (it's working).  The interest in T.J. Maxx stores is through the roof tonight as the stores are getting calls inquiring about iPad (Black Friday only one week away).  5,000 iPads x $100 discount is the price of a solid commercial for TJX on network TV, so this marketing campaign isn't that expensive.

I want to see how this plays out.  Did Apple sign some agreement with TJX? Are there more $399 iPad shipments coming?   Hopefully the juicy details get leaked.

Apple's Phil Schiller Wants YOU to Buy iPad and Apple TV for Holidays

Phil Schiller making Apple's 2010
holiday wish list with Santa.
. 

Apple.com routinely ranks in the top 50 most visited websites on the web. On November 16, 2010, Apple.com saw enough traffic to take in a hypothetical $75,000/day in ad revenue (not including the $ millions in sales). The website is a big deal from a marketing standpoint.

Apple SVP of Worldwide Product Marketing Phil Schiller (and Steve Jobs) are ultimately in charge of what we see or don't see on Apple.com.  Taking a look at Apple's online site, we can see what Apple wants us to buy for the holidays: iPads, Apple TVs, and Apple accessories.  At the surface, this may not necessary seem too noteworthy, but diving a bit deeper, I find some interesting developments.




iPad

Apple's online website November 16, 2010

Apple TV

Apple's online website November 16, 2010

So Apple is highlighting two of its newer products for the holidays and both are priced to sell (let us keep the macbook air's pricing out of this discussion).  iPad's $499 base price is making it a compelling choice for many (with some families picking up more than one). Meanwhile Apple TV's $99 price tag is priced for an impulse purchase. Chances are good that you will walk into an Apple store and walk away with an Apple TV without ever intending to spend any money. $99 will do that to you.   The same behavior can't be said with a $1000+ macbook pro, which most likely involves weeks (or months) of debating and comparing before deciding to buy.

Few other interesting tidbits from Apple.com's holiday product placement:

1) We are still only at the first generation iPad.  iPad distribution  (Target, Walmart, AT&T, Verizon, Sam's) is massive for a first generation product. iPhone adoption really didn't take off until iPhone 3GS and iPhone 4. Apple's aggressive marketing for iPad continues. Apple wants to get as much of a first-mover advantage as possible before competitors enter the tablet space.  Will people part ways with $499+ during the holidays to buy iPad? It still remains to be seen. I think $499 is a lot to spend for one gift, but its tough to contain iPad's popularity.

2) Is Apple TV still a hobby?  Are good sales surprising Apple?  Steve Jobs mentioned 250,000 Apple TVs were sold in the first 18 days. Apple is marketing Apple TV more than the first gen Apple TV, but still less than other Apple products.  Google TV is struggling and content to view on Apple TV is still lacking.  I think Apple has a few ways in mind to take Apple TV forward.  Give it time and let a few million Apple TVs get sold before improving the experience.

So the company known for its Macs and iPhones wants us to buy iPads and Apple TVs for the holidays. All I know is most (if not all) of Apple's products will make popular gifts in the coming weeks.

How is this site doing?

After a few days (and postings), initial viewer stats for this site are available.

Page views are surpassing my expectations.

Nearly 50% of page views are from those outside the U.S.
Nearly 40% of page views are from Windows machines (11% from iPhone).
Nearly 40% of page views are from Firefox (20% from Chrome and Safari each).

Thank you to those visting this site. My ultimate goal is to have you check back periodically (and also to discuss any disagreement you may have with my arguments).

This site will not turn into some type of apple news aggregation, sorry.  There are plenty of other sites that do that and the world doesn't need another one. Instead, I am seeing a number of interesting observations occurring in tech land and they are largely going unnoticed.  I want to capture those here.

thanks for visiting.

2010 - Yet Another Apple Holiday Shopping Season PART 1 (Apple TV = Major Deal)?

In the coming days, I will spend some time discussing how (and why) this Holiday season will be another Apple Holiday, with Steve Jobs and Co. producing the products that comprise (yet again) the top spots of most children's (and adult's) wish lists.

If my memory serves me correct, this will be the third Holiday season (2008, 2009, 2010) in which Apple has been the clear benefactor of children's (and adult's) lust for tech toys (beyond iPods).  Prior to 2008, Apple's premium-priced products capped any widespread giddy holiday buying behavior except for the iPod lineup.

Apple TV - Interesting. Very Interesting.  Low Expectations + Popular = Upside Surprise?

The sleeper hit this Holiday season may very well be Apple TV.  I am now hearing normal folk (defined as those who don't know who Steve Jobs is) discuss Apple TV and what it does.  <-- A good sign.  Combined with very low expectations (for apple), any significant Apple TV sales figures will be looked at positively (if apple continues to disclose sales numbers beyond's Steve Job's initial 250,000 Apple TVs sold figure).

I am seeing signs that Apple TV's connection to the iOS ecosystem will only expand as time goes on (even without content providers completely on board)  Airplay appears to be a bigger deal than people are making it out to be.  And to think...Apple TV remains a hobby.

Apple's Big iTunes Announcement: The Beatles

The Beatles are coming to iTunes – WSJ reporting. The announcement wasn’t ready in time for the past iPod event. A press release would have been sufficient though for such news, unless Steve is still holding some surprises until tomorrow. A large portion of the population idolizes the Beatles but I think this whole “let’s put this big announcement on our website for one full day” was all Steve Jobs since he was one of the few people that experienced the now infamous decades long feud with The Beatles surrounding naming rights and pretty much silly stuff with no consequence to how many iPads are getting sold.
 
Now I need to find a nickel.

Apple Announces New Content Options For Apple TV - My Educated Wager

Just found a nickel so let me wager a bet on Apple's iTunes announcement for 11/16

1)This news is not getting an event but is getting a big one day spot on apple.com (and corresponding online media discussion. Tells me it is significant.
2)News on streaming or "cloud" based discussion could have been included at the past iPod event.
3)So what is something that is significant, but not enough signifcant for an event? Something that probably could have been placed at the end of a presentation but due to lack of timing, details couldn't be ironed out.

I wager the news is on new content options for apple tv, announced tomorrow in order to make apple TVs a wanted holiday gift item on par with iPod touches. I also suspect the news will be discussed in more detail (and used in some fashion) with second generation iPad introduced in 2011.

Windows Phone 7's Problem: Look at the Palm Pre

Summer 2009. The Palm Pre was released to the public. The Palm Pre was going to be the iPhone Killer. The Palm Pre was going to turn Palm around.

Palm Pre - Released Summer 2009

Instead, the Palm Pre turned into one of the more intriguing tech disasters in years, leading to Palm's fire sale to HP. Tech pundits placed its failure on Palm's exclusive agreement with Sprint (a network still known for those chirping walkie-talkie phones). Others pointed to Palm Pre's lack of apps.  The comparison was even made between the Palm Pre and a kitchen utensil able to chop cheese (ouch).  

All of those reasons are plausible, but there was a deeper issue at play. 

The Palm Pre failed because the Palm brand was weak, beaten down after years of mockery and jokes. People didn't give the phone any chance and simply moved to Apple and Android. While Palm was well known for its handheld pocket organizers and other innovative products, the company had run into a rough patch for the few years leading up to the Palm Pre.  WebOS was reviewed as a worthy competitor to iOS and a product full of potential. No one took the bait. 

Fall 2010.  The Windows Phone 7 line-up was released to the public. 

Microsoft CEO Steve Ballmer introducing
the Windows 7 Phone line-up. October 2010. 

The Windows Phone 7 platform failed because the Windows brand was weak, beaten down with years of mockery and jokes. People didn't give the phones any chance and simply moved to Apple and Android. While Windows was well know for its older operating systems and productivity software, the company had run into a rough patch for the few years leading up to Windows Phone 7.  The Windows Phone 7 UI was reviewed as a worthy competitor to iOS and a product full of potential. No one took the bait.

Now maybe I am being a bit premature, but you get my point.  Microsoft's (and Windows') brand has been destroyed to such a level that many people will not bother getting reacquainted with the company and its products, regardless of how good the features may be.  Few tech pundits are calling for this type of platform failure (especially only after one week of sales). 

Will Any Windows Phone 7 Units Sell?

The loyal Microsoft base will love these phones, but people with no preference will most likely head to the Apple Store or the slew of Android phones, keeping Microsoft to a market share of less than 5%-10%. 

Could I be wrong?  Unlike Palm, Microsoft has one big weapon to keep their battle going. Cash.  Tons of cash.  Palm had basically run of cash leaving it unable to advertise the Palm Pre (remember those ads with the creepy young woman?) and put money into quick software and hardware turnarounds. Meanwhile with heaps of cash, Microsoft is still supporting the failure known as Zune.

Speaking of the Zune, I think Windows Phone 7 will turn into the Zune of mobile phones: Always around, but hardly anywhere. 

Stay Tuned....

(I plan on spending some time with a Windows 7 Phone in the near feature and will post reactions).

Disagree with my statements...discuss in comments.