Believe the rumors: Apple will soon stop selling software at its retail stores

In December I asked: "Should Apple stop selling software in its retail stores?" I reasoned that the Mac App Store greatly diminished the need for Apple retail stores to carry boxed software, which takes up valuable shelf space. In early January, Apple released the Mac App Store, which is part of Mac OS X 10.6 (aka Snow Leopard). I expected Apple would soon go all digital, removing packaged software from its stores. Late last night, MacRumors claimed Apple is preparing to do just that: "Based on what we've heard from our sources, however, Apple is planning on making the move to all digital sooner than expected at their retail stores. Apple is working towards eliminating boxed software and presumably focusing sales through the Mac App Store."

I can't attest whether or not the rumor is true, or vouch for MacRumors sourcing, but it's what I expected Apple to do, which is why I asked the question. Not everyone agrees this is the right move. In December, Stephen Baker, NPD's vice president of industry analysis told me that "only 43 percent of online software buyers want a digital download only; 30 percent want a box and 22 percent want a download and a box." He didn't see how Apple could meet consumer preferences by going digital download only. I see it differently: 43 percent represents a helluva lot of people, and right now Apple only needs to be concerned with Mac owners.

There's also the issue of leverage and exposure. Smaller publishers are likely to get more exposure from placement within the operating system than inside the retail store. Late last month Pixelmator made headlines after announcing $1 million in sales after only 20 days in the Mac App Store. Additionally, by pulling boxed software from retail stores, Apple exerts leverage on bigger developers like Adobe and Microsoft to distribute their products through the Mac App Store.

Over the years Apple and Microsoft have offered special bundles -- discounts on Office for Macintosh purchased with a new computer. How can there be a bundle deal without boxed software available in the retail strore? Easy. Provide buyers a discount with their shiny new Mac, which can be redeemed when purchasing Mac Office.

Ten years ago next month, Apple released Mac OS X 10.0, with a scarcity of native applications. The company hadn't yet opened one retail store. My how times have changed. Built-in software store is barely 30 days old, but transformative. It's not a question of if Apple stops selling packaged software from its retail stores but when.

By the way, one comment from my December post deserves calling out. Calc_Yolatuh writes: "Given that nasty art-museum feel they've already got, perhaps the extra whitespace will serve to further crush the spirits of their customers. Actually if they go 100 percent online, I won't even have to walk past their stores anymore." You wish. Not until Apple can materialize/teleport physical purchases is that going to happen.