Future growth of Apple Stores limited?
updated 01:10 pm EDT, Wed August 3, 2005
Growth of Apple retail?
While the iPod has contributed to Apple's recent resurgence, its retail initiative has also contributed significantly to the company's bottom line over the past few years. A columnist at TheStreet.com notes that although Apple has managed to post some incredible retail growth numbers, by the number of "desirable" locations and also by typicall retail store limitations: "The benefits [of Apple Stores] go beyond just raw sales and income figures, analysts say. Apple launched the stores at a time when other retailers were cutting back on shelf space they had devoted to Apple products, or had stopped carrying them altogether...But the longer-term costs may be more of an issue. The company has been able to show such rapid growth from retail partly because of the relative youth of its stores; more than half the stores are less than two years old....Typically, in the retail industry, individual stores show their greatest sales growth in the first four years before that growth starts to tail off."










Y'know...
08/03, 01:36pm reply
Sometimes doesn't it seem like these analysts and pundits sit around smoking clove cigarettes and peering through the foul-smelling smoke, coming up with "what-if" scenarios? Then they go back to the office and do some "research" to prove their half-baked (pun intended) ideas. Of course, one can find statistics to support any what-if, so they feel justified in publishing their scenarios.
Hey, economics is not a science. Apple's retail initiative may show slower growth in the next few years, or they may not. Everything ends, of course, but if the slow down begins sooner rather than later, it's because of what's happening in the economy, with Apple products, etc. Not because of statistics.
ADeweyan
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Joined: Mar 2004
of course
08/03, 02:15pm reply
of course your same stores sales growth (not sales, but the rate of growth) taper off after four years, and this isn't any kind of problem at all.
as for desirable locations tapering off...well yes, apple is currently going for the country clubber crowd, but there is a whole 90% of the rest of the country out there, and those people do buy computers too, even macs.
Jonathan-Tanya
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Joined: Oct 2004
Like they said with iPod
08/03, 02:36pm reply
A few weeks ago some analyst was spouting off that the iPod had long since saturated it's market and it's nothing but a downhill slide for Apple. Then the AAPL quarterly numbers come out, moving totally in the other (upward) direction. I guess MacNN missed that analyst's retraction...
Apple has lots of room to grow, lots of untapped customers out there, and plenty of interesting and innovative and affordable products in the pipeline.
and oh yeah..... Windows sucks.
presearch
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Joined: Aug 2001
Umm, well
08/03, 06:39pm reply
Actually, the folks outside of the high income areas where Apple sells don't really buy many iBooks or iPods. I suspect Apple is running into a wall, unless they change their pricing/margin expectations.
And I haven't noticed a big downturn in the economy. In fact, last I looked overall retail was up recently.
wrecklass
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Joined: Mar 2005
What?
08/03, 07:31pm reply
What do you mean the folks outside of high income areas don't buy iBooks or iPods? You mean all of my friends and family who are just normal people, like school teachers and retired military and carpet installers - didn't actually buy those Apple computers I saw them using? Or their iPods? Are they just on loan?
I didn't know that people who don't live in ritzy malls colouldn't go there and shop...
Anyway - my problem is that we have THREE Apple stores now in Portland, Oregon. Two of them are right next to eachother practically. And we have a good number of independant Apple stores as well. Apple has been well represented in Portland for a long time.
Yet they still haven't opened not a single store in New Mexico. And New Mexico, Albuquerque in general, is very lacking in Apple retail availability.
Maybe now that Apple is using Intel - they will put an Apple Store in "inteltown" (otherwise known as Rio Rancho, NM).
ValkRaider
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Joined: Aug 2001
There's a lot more than
08/04, 01:53am reply
I think it has to do with how the stores are run, the upkeep, how you display and keep up your demos. The Apple Stores all get A's in these areas which gives customers a richer more satisfying experience. Knowledgable sales and service of course are also key in there success. Location may have some impact but what I've mentioned above I think is more important. Age has nothing to do with it either. As long as they maintain how they run things I don't see how that would effect them in any way. There visability is really helping people who have never looked or touched a Mac really see there not as some PC people make them out to be. The iPod of course also is helping out the curious as well.
horvatic
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Joined: Apr 2002