Apple uses gift cards for Black Friday deals; stresses value, not savings

“In an interesting departure from previous years, Apple is using a combination of cash and gift card discounts worldwide to attract shoppers to its on-line and retail stores on Black Friday,” Gary Allen writes for Forbes. “The gift card option focuses on creating more value for the same price, rather than giving shoppers a cash discount they could spend for other expenses. But beyond the practical differences, the discount change seems to signal a change in philosophy that directly affects Apple’s revenue stream.”

“The cash-off discount is standard in the retail industry, and is based on the attraction of obtaining a product at a cheaper price,” Allen writes. “That attraction doesn’t exist for a gift card discount, since shoppers will eventually spend the same amount of money. Instead, a gift card discount offers buyers marginally more products for the same price. The discount technique stresses value rather than savings.”

Read more in the full article here.

10 Comments

  1. As i already wrote in the previous post: Appel has done a wrong move with this “gift card” method.
    Anyway you turn it, it is a marketing failure.
    This could open a highway to some “Giftcardgate”, or something!

  2. Must be that stupid broad Arendts idea. No, thanks, I prefer cash to gift cards which is nonsensical anyway because I’m going to buy that one item and not one item more. Why should I accept a gift card? It’s my money, I decide what to do with it.

    This is a signal to give Apple stores a two fingered salute and walk into the nearest Best Buy and give them my patronage. Balls to you Arendts.

  3. Let’s see, on Thursday or Saturday you would pay the full price for a computer.

    On Black Friday you buy a computer at the full price and get a free gift card worth about, let’s say, $100. Give the card to a family member on Christmas Day and you saved $100.

    Is it that hard to understand?

    1. Another happy customer! That’s a greater discount than Apple usually offers, and doesn’t dilute the brand by enticing paupers and tightarses in with discount stickers.

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