Apple's Retail Army

Analysis of the article 'Apple's Retail Army, Long on Loyalty but Short on Pay'

Primary Source: http://www.nytimes.com/2012/06/24/business/apple-store-workers-loyal-but-short-on-pay.html?pagewanted=all&_r=0

Secondary Source: Classnotes

America’s love affair with the smartphone has helped create tens of thousands of jobs at places like Best Buy and Verizon Wireless and will this year pump billions into the economy. The Apple Store is the undoubted king, a retail phenomenon renowned for impeccable design, deft service and spectacular revenues. Worldwide, its stores sold $16 billion in merchandise. But most of Apple’s employees enjoyed little of that wealth. While consumers tend to think of Apple’s headquarters in Cupertino, Calif., as the company’s heart and soul, a majority of its workers in the United States are not engineers or executives with hefty salaries and bonuses but rather hourly wage earners selling iPhones and MacBooks.

The Internet and advances in computing have created untold millionaires, but most of the jobs created by technology giants are service sector positions — sales employees and customer service representatives, repairmen and delivery drivers — that offer little of Silicon Valley’s riches or glamour. Much of the debate about American unemployment has focused on why companies have moved factories overseas, but only 8 percent of the American work force is in manufacturing, according to the Bureau of Labor Statistics. “In the service sector, companies provide a little bit of training and hope their employees leave after a few years,” says Arne L. Kalleberg, a professor of sociology at the University of North Carolina. “Especially now, given the number of college kids willing to work for low wages.”

In other areas, Apple has been a leader. Stores in a variety of fields have adopted the company’s retail techniques, like the use of roving credit-card swipers to minimize checkout lines, as well as the petting-zoo layout that encourages customers to test-drive products. The problem for Apple Store employees, they said, wasn't just the pace. It was the lack of upward mobility. There are only a handful of different jobs at Apple Stores and the most prestigious are invariably sought after by dozens of candidates. And a leap to the company headquarters is highly unusual.