Why Apple Hired Burberry's Angela Ahrendts

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Oct. 21 (Bloomberg) -- Scott Galloway, a professor at NYU's Stern School of Business, discusses why Apple hired Burberry's Angela Ahrendts with Mark Crumpton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

And why does this make her the likely successor to tim cook?

She is saying she has been told she is the successor.

They made $26 million last year.

That is a nonstarter, so you know there is something else.

The conjecture is that she was offered the successor spot.

I think what they told her that in the next few years, apple will be the dominant luxury fashion brand, and they want her to spearhead those efforts.

Literally and offer too good to refuse?

This is an exciting time to be apple.

This is the best brand in the world, and it trades at a multiple of eight times.

Michael cores -- kors trades at 18. it is said that it is the equivalent of the modern day movie producer.

If the movie flops, the whole company falls under a cloud.

People are doing a product functionality trade-off, and they are looking at luxury.

They are looking at brand, and apple has the best brand right now.

This is a no-brainer, right?

Air is a lot of risk here.

There is a merchandising strategy.

Ask yourself this.

You go in pick out some sunglasses, and it is google and apple, and i think a lot of people are going to pick the apples sunglasses.

Because?

Apple has a better brand.

It says something about you that is progressive.

There is more history around merchandising and retail.

This is a brand that says something about you.

It is a brand that everybody wants to say that this is the crowd or brand that i've heard around.

Luxury, if you will, is sort of the perfect storm.

What drives them is the wealthy and emerging middle class in less -- markets.

Apple wants to be around these global trends as opposed to trying every year that what have you done for me lately business which is technology.

Are you surprised that it took this long for apple to understand that it is the brand rather than the product?

Apple, to their credit, they get brand.

If you look at the key features of a lifestyle or luxury brand, it is a strong link to a founder, a great heritage, focus of design, vertical retail.

I think for a long time, apple has understood the fundamental dynamics of building an aspirational brand, and this is an opportunity for them to really mind that.

-- to really mine that.

I think it could be ugly, and the firms with the more wearable accessories, they could have a very serious player in the form of apple sooner than they think.

I do not think it worked -- will be one release.

A lot of analysts say what impact does it have on some of the bigger players that have gotten used to some very fat margins.

About 20 seconds.

Could steve jobs have made this move?

Gosh, i have no idea.

This seemed like an obvious move, and steve jobs at the end of the day was never a product guide.

He was a marketing guy.

At the end of the movie "2001: a space odessy," they talk about

This text has been automatically generated. It may not be 100% accurate.

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