Conference Call: Apple retail update
updated 06:10 pm EST, Wed January 17, 2007
Apple retail update
Apple today revealed that its retail stores saw record sales during the quarter, posting revenues of $1.1 billion. The company opened five new stories during the quarter for a total of 170 retail stores. With an average of 169 stores open during the quarter, the Cupertino-based company said that average store revenue was $6.7 million. The company's fast-growing retail segment sold 308,000 Macs during the quarter, representing 60 percent year-over-year growth, Apple said. Interestingly, despite the drastic increase in Mac sales, overall revenues for the stores decreased due to lower iPod revenues and lower iPod sales. The company said that the decrease in iPod sales was due to expanded distribution points for iPods and more availability of iPods from other sources (last year, most of the iPods were only available from the Apple Stores).
Almost 28 million visited the Apple stores during the quarter, representing about 13,000 customers per store each week of the quarter. Apple's same-store revenue and visitor numbers compare favorably to the prior September quarter during which Apple saw about 20 million visitors, who generated an average of $4.6 million per store.
Last quarter, the company saw more than 50 percent of its retail sales to "switcher," a term used for those new to Mac platform. The company did not provide specific numbers for the December quarter, but noted Apple CEO Steve Jobs prior announcement that 50 percent of sales of all Macs during the quarter were to those "new to the Mac platform," the first time the company hit that milestone.
The company said it ended the quarter with over 6,600 employees in its retail segment (21,500 overall headcount). It expects to open seven new retail stores in the March quarter and between 35-40 stores during fiscal 2007 (Oct '06 through Sept. '07).The company said it ended the quarter with over 6,600 employees in its retail segment (21,500 overall headcount). It expects to open seven new retail stores in the March quarter and between 35-40 stores during fiscal 2007 (Oct '06 through Sept. '07).
