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http://www.macnn.com/articles/01/12/27/apple.to/

Apple to lose money on retail stores

updated 02:00 am EST, Thu December 27, 2001

 
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Apple has disclosed in a filing with the Securities and Exchange commission that it expects to lose a "small" amount of money on its retail store outfit, which has increased steadily in size to 27 stores over the past year. The company blamed the economic effects of September 11th's attacks for the shortfall.


by MacNN Staff

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  1. asterizk

    Fresh-Faced Recruit

    Joined: Jan 2001

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    12/27, 01:20am | report spam | Reply |

    not a total surprise

    Well, it wasn't a complete surprise. I think Apple announced this already a little while back. No biggie, I think the stores will do well over the longer term.

  1. robguz

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    Joined: Nov 2002

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    12/27, 08:27am | report spam | Reply |

    Not the point

    I doubt the stores will ever make money directly. They are basically the most expensive way to buy equipment. What they are good for is advertising up close and personal which will put people over the edge into buying more and upgrading sooner, but not necessarily at the stores. Unfortunately, there doesn't seem to be an easy way to track this. For example, I've been planning for a while to get a new system in January, but the fact that I have an Apple store that I have been to several times, and the ability to see the gorgeous flat panel displays in action has pushed me to spend another $1000 on the 17" screen when I have a perfectly good and bigger year old 19" CRT at home. The Apple Store has also helped in that they made repairing my ibook a cinch by extending my warranty two days and repairing it for free. To celebrate, I went and spent $400 on an Airport setup. If Apple wants the stores to be competetive, they at the very least need to lower prices on peripherals to be as cheap as the catalogs. for example, a LaCie CDR was $100 more than I could get at any of a dozen resellers. I would have preferred to get it at the Apple Store, and may have even done so if it was $20 more, but $100 more, no thanks.

  1. \0

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    12/27, 09:56am | report spam | Reply | delete

    First Year

    This is expected. Since Apple had to make the huge investment to get the stores ready, it's hard to recoup those "losses" in a mild year (can you say, "recession"?) This is typical of automotive companies when they release a new model because of the retooling costs.

    Go Apple. I think 2002 will be profitable, although not by much.

  1. bhcs

    Fresh-Faced Recruit

    Joined: Feb 1999

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    12/27, 10:30am | report spam | Reply |

    Apple Stores

    I expected there would be some loss involved with opening all the new stores. The flooring alone in each store is over a million bucks :) They will not do well in some areas and will have smashing success in others. I love the store in our area and hope it succeeds, but I don't honestly see it staying here more than a year. This is a very depressed area and will remain so. I wish all the stores well and hope they become a permanent fixture.

  1. \0

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    12/27, 10:48am | report spam | Reply | delete

    re:I doubt the stores wil

    Ummm. I will bet on the guy that helped build the expansion of target and now is building apple's strategy over your doubts any day of the week.


    considering the times we live in and the scope of the project a small loss in within reason I would say.

  1. \0

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    12/27, 10:52am | report spam | Reply | delete

    "loose" versus "lose"

    If I see any of you inappropriately use "loose" when you mean "lose", such as in "Apple will loose money", you're going down, buddy.

  1. The Ginger Rat

    Mac Enthusiast

    Joined: May 2001

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    12/27, 11:14am | report spam | Reply |

    re: "loose" versus "lo

    Thank God! I am not a big fan of the Grammar Police, but this bothers me on every forum I read. Stop it!

    I will be interested in seeing the magnitude of the losses, and what actual revenues are once building costs are removed. I would really also like to know just how much rent Apple is paying for some of these sites.

  1. \0

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    12/27, 12:43pm | report spam | Reply | delete

    See????

    None of this would've ever happened if Uncle Steve would just listen to me. I tells him, "Uncle Stevie, you gots to sells mammo-, uh, memera-, I mean meh-mo-rah-bee-lias and stuff! Yew know, like pens and watches and cups and stuff!" And he says, "Billybob, I's can't just sells those like that. The committee gots to agrees on it. But seeing as we isn't doing red hot, and since we have so much empty space, maybe yer right, son."

    "Son?!?!" I gasped. "Yew mean yer my Daddy, too?!?!"

    ...to be continued...

  1. TheJoshu

    Mac Elite

    Joined: Oct 1999

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    12/27, 01:53pm | report spam | Reply |

    Re: See????

    Eep.

  1. \0

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    12/27, 02:04pm | report spam | Reply | delete

    Advertise, Apple

    Not to insult apple, but they havent had one commercial for these stores. The success of Gateway Country's is that they actually advertise. And if apple does finally decide to advertise on TV, news paper, etc. at least make it direct. not like most commercials where you had the airport base station flying around the screen with people left with wha?

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