Apple Banks on Physical Stores as Economies Reopen

Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. REUTERS/Gonzalo Fuentes/File Photo
Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. REUTERS/Gonzalo Fuentes/File Photo
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Apple Banks on Physical Stores as Economies Reopen

Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. REUTERS/Gonzalo Fuentes/File Photo
Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. REUTERS/Gonzalo Fuentes/File Photo

Apple Inc is expanding retail operations as the United States emerges from the pandemic, betting that a combination of strategies developed before and during COVID-19 will make its stores more popular than ever, its retail chief told Reuters.

Apple is doing this as the retail industry works out what the post-pandemic future will look like, including consumers who have become used to ordering almost everything online.

For Apple, the answer is keeping what helped it through the pandemic, and doubling down on its pre-pandemic strategy of in-store events and experiences beyond shopping.

The express counters that popped up to help customers more efficiently pick up online orders, for example, will become regular features of Apple's 500-plus stores around the world, all of which have reopened as of June 14.

The iPhone maker is also adding a new "Creative Studios" program, starting in Los Angeles and Beijing, that aims to teach young people from underrepresented communities to use Apple products to create music, films and photography. That adds to a broader array of classes based out of the stores designed to bring in customers in contact with Apple more frequently.

"We're looking at this moment right now as a way to really begin again, and begin again in every way," Deirdre O'Brien,

Apple's senior vice president of retail and people, told Reuters as the company prepared on Thursday to open a new store at the renovated Tower Theater in downtown Los Angeles, Apple's second new US retail outlet since the beginning of the pandemic.

Apple boomed during the pandemic, hitting $2 trillion in market capitalization in August 2020 and setting records for sales of iPhones and several other categories.

One of the retail-related weak spots in its financial results, analysts said, was a slowdown in sales of AppleCare, a device insurance plan that is often an upsell during a store visit but easier for consumers to skip online. Apple also experienced supply chain missteps over the past year, delivering its iPhone 12 later than usual last year and saying in April that the global semiconductor shortage would cost it several billion dollars in sales.



8.5 Million Computers Running Windows Affected by Faulty Update from CrowdStrike

A technician works on an information display near United Airlines gates at Chicago O'Hare International Airport in Chicago, Friday, July 19, 2024, after a faulty CrowdStrike update caused a major internet outage for computers running Microsoft Windows. (AP Photo/Carolyn Kaster)
A technician works on an information display near United Airlines gates at Chicago O'Hare International Airport in Chicago, Friday, July 19, 2024, after a faulty CrowdStrike update caused a major internet outage for computers running Microsoft Windows. (AP Photo/Carolyn Kaster)
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8.5 Million Computers Running Windows Affected by Faulty Update from CrowdStrike

A technician works on an information display near United Airlines gates at Chicago O'Hare International Airport in Chicago, Friday, July 19, 2024, after a faulty CrowdStrike update caused a major internet outage for computers running Microsoft Windows. (AP Photo/Carolyn Kaster)
A technician works on an information display near United Airlines gates at Chicago O'Hare International Airport in Chicago, Friday, July 19, 2024, after a faulty CrowdStrike update caused a major internet outage for computers running Microsoft Windows. (AP Photo/Carolyn Kaster)

As the world continues to recover from massive business and travel disruptions caused by a faulty software update from cybersecurity firm CrowdStrike, malicious actors are trying to exploit the situation for their own gain.
Government cybersecurity agencies across the globe and even CrowdStrike CEO George Kurtz are warning businesses and individuals around the world about new phishing schemes that involve malicious actors posing as CrowdStrike employees or other tech specialists offering to assist those recovering from the outage.
“We know that adversaries and bad actors will try to exploit events like this,” Kurtz said in a statement. “I encourage everyone to remain vigilant and ensure that you’re engaging with official CrowdStrike representatives.”
According to The Associated Press, the UK Cyber Security Center said they have noticed an increase in phishing attempts around this event.
Microsoft said 8.5 million devices running its Windows operating system were affected by the faulty cybersecurity update Friday that led to worldwide disruptions. That’s less than 1% of all Windows-based machines, Microsoft cybersecurity executive David Weston said in a blog post Saturday.
He also said such a significant disturbance is rare but “demonstrates the interconnected nature of our broad ecosystem.”
What's happening with air travel? By late morning on the US East Coast, airlines around the world had canceled more than 1,500 flights, far fewer than the 5,100-plus cancellations on Friday, according to figures from tracking service FlightAware.
Two-thirds of Saturday’s canceled flights occurred in the United States, where carriers scrambled to get planes and crews back into position after massive disruptions the day before. According to travel-data provider Cirium, US carriers canceled about 3.5% of their scheduled flights for Saturday. Only Australia was hit harder.
Canceled flights were running at about 1% in the United Kingdom, France and Brazil and about 2% in Canada, Italy and India among major air-travel markets.
Robert Mann, a former airline executive and now a consultant in the New York area, said it was unclear exactly why US airlines were suffering disproportionate cancellations, but possible causes include a greater degree of outsourcing of technology and more exposure to Microsoft operating systems that received the faulty upgrade from CrowdStrike.
How are healthcare systems holding up? Health care systems affected by the outage faced clinic closures, canceled surgeries and appointments and restricted access to patient records.
Cedars-Sinai Medical Center in Los Angeles, Calif., said “steady progress has been made” to bring its servers back online and thanked its patients for being flexible during the crisis.
“Our teams will be working actively through the weekend as we continue to resolve remaining issues in preparation for the start of the work week,” the hospital wrote in a statement.
In Austria, a leading organization of doctors said the outage exposed the vulnerability of relying on digital systems. Harald Mayer, vice president of the Austrian Chamber of Doctors, said the outage showed that hospitals need to have analog backups to protect patient care.
The organization also called on governments to impose high standards in patient data protection and security, and on health providers to train staff and put systems in place to manage crises.
“Happily, where there were problems, these were kept small and short-lived and many areas of care were unaffected” in Austria, Mayer said.
The Schleswig-Holstein University Hospital in northern Germany, which canceled all elective procedures Friday, said Saturday that systems were gradually being restored and that elective surgery could resume by Monday.