Apple's retail VP Jerry McDougal calls it quits

Jerry McDougal in happier times

There seems to be a subtle change in the atmosphere at Apple. With the stock down 31% from its all time highmade on the day that the Apple iPhone 5 launched, and as Wall Street analysts lower their target on the company's stock, there is a new feeling in the air around Cupertino. And now, some of the tech titan's executives are leaving the company. On Tuesday, Apple VP of Retail, Jerry McDougal, resigned. McDougal was considered to be a possible choice to fill the vacant office with title Senior VP of Retail on the door.

McDougal will be replaced by Jim Bean, formerly VP of Finance. Meanwhile, Apple is still looking for someone to replace John Browett, the man that was at the top of the totem pole at Apple's retail division. You might recall that Browett joined Apple last year after a stint at retailer Dixons and was quickly awarded a pay package worth as much as $61 million before getting canned by Apple.

"Retail has an incredibly strong network of leaders at the store and regional level, and they will continue the excellent work they’ve done over the past decade to revolutionize retailing with unique, innovative services and a focus on the customer that is second to none. Jim Bean is moving to Retail to help support our store teams. Jim has been at Apple for 15 years and is a great leader who understands our culture and focus on customer service."-Steve Dowling, Apple spokesman

Apple's pricing magic revealed

Have you ever wondered why phones and tablets often get hugely discounted merely weeks or months after release, and the iPhone and iPad retain their prices perfectly flat for nearly their whole yearly existence? How does Apple manage to prevent large chains like Best Buy and Wal-Mart to discount its products when even giants like Samsung cannot?

If you have ever wondered about the pricing magic that Apple does to keep its huge profit margin intact, an interesting article at MacWorld gives an explanation to at least a part of your questions.

First of all, Apple treats stores that sell its products differently from other companies. How? Every manufacturer gives its “manufacturer suggested retail price" or MSRP to retailers, and retailers can then come up with a price. However while all manufacturers allow for a wide gap between the wholesale price paid by the retailer and the MSRP, Apple does not.

The actual gap between wholesale price and MSRP for Apple products is a mystery surrounded with the veil of secrecy typical for Cupertino. And retailers cannot tell the numbers as they are bound by non-disclosure agreements.

“Apple, however, extends only a tiny wholesale discount on its Macs and iPads to your retailer of choice. The actual numbers are a closely guarded secret, protected by confidentiality agreements between Cupertino and its resellers, but the difference probably amounts to only a few percentage points off the official price that you find at Apple's own stores. With such a narrow gap to tinker with, most retailers can't offer big discounts and still hope to turn a profit,” MacWorld explains.

This alone however does not do the trick. Apple actually provides considerable monetary awards to retailers selling their products at or above a set price. This works like a post-sale subsidy, and keeps the pricing flat.

Overall, this strategy works brilliantly for Apple. The company has an equal policy towards all retailers, and it avoids the risk of having one single retailer offer huge cuts, grab the majority of sales and then blackmail Apple for discounts. Instead, Cupertino has its huge margin and the retailers are happy with their monetary incentive. Not a bad business model, is it?

-Phonearena

Movie 'jOBS' by Ashton Kutcher to Be Released in April

Open Road Films has announced that it is the distributor for the Ashton Kutcher-led film jOBS, and that the movie will receive a full release in April of this year, reports Deadline.

Directed by Joshua Michael Stern, written by Matthew Whitely, shot by Oscar- winning cinematographer Russell Carpenter and produced by Mark Hulme, jOBS details the major moments and defining characters that influenced Steve Jobs on a daily basis from 1971 through 2000. jOBS plunges into the depths of his character, creating an intense dialogue-driven story that is as much a sweeping epic as it is an immensely personal portrait of Steve Jobs’ life. The filmmakers were granted unprecedented access during shooting to the historic garage in Palo Alto, that served as the birthplace to Apple Inc. jOBS stars Ashton Kutcher, Dermot Mulroney, Josh Gad, Lukas Haas, J.K. Simmons and Matthew Modine. Inferno Entertainment is handling international sales on jOBS.

Rumor : Next iPhone coming with a lot color options

Apple is said to be planning to offer customers more choices with the launch of its next-generation iPhone, including multiple colors and sizes, with an earlier-than-expected debut in the May-June time frame.

Analyst Brian White of Topeka Capital Markets said in a note to investors Wednesday that his checks within the industry have indicated the so-called "iPhone 5S" will come in a variety of colors beyond the current black and white. He expects that the next iPhone will be available in a total of eight colors: the pink, yellow, blue, green, purple, silver and slate shades currently found on the iPod nano, and a (Product)Red model with proceeds benefiting AIDS research.

Beyond the new colors, White also said his industry checks found that a new model could become available in multiple screen sizes. Apple currently sells the 4-inch iPhone 5 alongside the 3.5-inch iPhone 4S and iPhone 4, but the company has never offered multiple screen sizes for a single model.

"We believe this is about to change with the next iPhone offering different screen sizes that we believe will allow Apple to better bifurcate the market and expand its reach," White said. "This eventually opens up the possibility for a lower-priced iPhone (i.e., iPhone mini) with a smaller screen size that could allow Apple to further penetrate markets such as China and open up opportunities in India."

The possibility of different iPhone screen sizes also opens up the opportunity for Apple to build a handset with a larger display. Apple's chief rival, Samsung, has found some success in the market with its Galaxy Note series, which features a 5.5-inch screen with its latest model.

The launch of the iPhone 5 in September marked the first time that Apple has changed the screen size of the iPhone. The new 4-inch screen is slightly taller than the previous 3.5-inch screen, but remains the same width, allowing the handset to be operated with one hand.

As for new colors, White expects that expanded options will also eventually come to the iPad lineup, though no timeframe was given. The iPad mini launched in late October with design cues borrowed from the redesigned iPhone 5 and iPod touch, including an anodized aluminum back, but the device lacks the array of color options found in the iPod touch lineup.