updated 02:10 am EDT, Tue August 21, 2007
Apple stores growing
Though Apple's retail stores operated at a loss for the first seven quarters they were open, they have gradually become a critical component to the company's bottom line in terms of real, directly generated revenue. Garnering a profit of only $1 million in the fourth quarter of 2003, Apple's most recently completed fiscal quarter shows retail profits totaling $184 million. In some quarters, the retail component of Apple's business has brought in nearly 20% of total revenue. A number of new Apple retail stores are opening internationally in coming weeks, continuing the company's aggressive expansion in light of the segment's tremendous growth.
A number of new Apple retail stores are opening internationally in coming weeks, continuing the company's aggressive expansion in light of the segment's tremendous growth. Apple's first Scotland-based retail store in Glasgow is scheduled to hold its grand opening on Saturday, August 25th beginning at 9:00 a.m. local time. The company has also begun recruiting staff to run its first Australian Apple Store, which was officially announced for earlier this year after reports surfaced in early February. Apple is also looking to hire for new several new stores in the UK, including Exeter, Milton Keynes, Glasgow, Reading and Brighton. It already has nine stores throughout the UK.
The green path of the below chart show's the retail contribution to Apple's revenues, starting when the first stores opened in May, 2001: the blue area guesses what Apple's results would look like if they had not opened retail stores, and not developed other additional sales outlets.
[Graph courtesy of ifoAppleStore]