updated 05:55 pm EDT, Wed July 25, 2007
Retail surges for Apple
With Apple CFO Peter Oppenheimer stating that Apple's retail operations experienced an "outstanding quarter," the company posted a 53% increase in year-over-year unit sales for the segment. In fact, Oppenheimer says it's the right time to begin measuring retail segment in the same manner as other Apple business segments. "We have determined that it is the right time to begin measuring our retail segment operating performance in a manner that is generally consistent with the way we measure Apple's other operating segments. Therefore, beginning with the June quarter, we are using cost of sales for Apple's products sold through our retail stores, that are similar to those used for Apple's other operating segments," Oppenheimer said. "We are also changing the way we measure AppleCare and .Mac sales through our retail stores. Historically, revenue and cost of sales were recognized by the retail segment at the time of sale for AppleCare and .Mac. We are now recognizing revenue in cost for these products over the lives of their respective agreements, consistent with the accounting treatment for our other segments." He added "We believe all these changes will allow greater comparability of results between our various operating segments
Sales through retail channels were $915 million representing 33 percent year over year growth. As a segment, retail stores generated $184 million compared with $122 million in the year-ago quarter. In aggregate, the stores sold 330,000 Macs during the qtr, representing 53 percent year over year unit growth.
During the quarter, Apple remodeled 13 stores opened 18 new stores, ending with 185 retail outlets. The company also announced plans to open 12 stores in the September quarter, to end with 197. With an average of 180 stores open in quarter, Apple posted $5.1 million in average revenue per store.
Apple also claims that 50% of Mac buyers in the quarter were new to the platform. In aggregate, 21.9 million people visited stores during quarter -- that's 9,000 customers per store per week
As a side note, the new OnetoOne education initiative launched during the quarter now has more than 270,000 members.