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New hire adds style to substance at Apple

Tuesday, October 15, 2013 - 02:08

Oct. 15 - Apple is bringing in Burberry's CEO to shore up its retail operations- in hopes of bringing back the buzz of its glory days. Bobbi Rebell reports.

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Apple - poaching its latest acquisition. Burberry CEO Angela Ahrendts- who turned around the British luxury brand- the hot hire- taking the top retail job - charged with expanding Apple's retail and online stores. But Apple watchers- who have seen profits and margins slipping- hoping for so much more: S&P Capital IQ's Scott Kessler: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "There is going to be an emphasis not only on the retail stores but international expansion. If you look at Burberry, I think more than a third of their revenues originated from China alone. So I expect that to be a big theme for Apple in the coming years and we think this new hire is going to help that process." She's also going to help remind consumers why they should pay more for Apple products- even if fierce competitors like Samsung catch their eye- Forrester Research's Sucharita Mulpuru: SOUNDBITE: SUCHARITA MULPURU, PRINCIPAL ANALYST, FORRESTER RESEARCH (ENGLISH) SAYING: "Technology companies, especially now are selling aspiration and luxury, and selling an image, and Apple has actually, you know, been probably the best at doing that of all of the technology companies, and they need to keep doing that. I think that was the fear after Steve Jobs passed away, was who is going to keep that torch burn- who is going to keep that wonderful aspirational sensibility of the Apple brand. And she has probably I think one of the best culture carriers I could see for Apple." And while luxury fashion may be her first language- she also talks digital: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: 'You know Burberry has been we think pretty pro-active and innovative when it comes to digital and things like marketing so we expect Apple to maybe embrace some of those technologies in that context a little bit more." Kessler expects the move to revive Apple stock- which has lost more than 30 percent since September of 2012- He has a buy on it- with a $550 price target.

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New hire adds style to substance at Apple

Tuesday, October 15, 2013 - 02:08