or Connect
AppleInsider › Forums › General › General Discussion › Apple plans massive retail expansion for 2011
New Posts  All Forums:Forum Nav:

Apple plans massive retail expansion for 2011

post #1 of 47
Thread Starter 
On the heels of a record breaking quarter, Apple's retail operations are set to dramatically expand over the next fiscal year, with 40 to 50 new locations slated to open worldwide.

The company currently operates 317 stores, 84 of which are outside the US. This quarter, Apple's retail operations brought in $3.57 billion in revenue, and increase of 75% over the previous year.

The stores also sold 874,000 Macs, up 30%. The company also reiterated that its stores continue to sell about half of those computers to customers new to the Mac. Apple reported a 52% increase in revenue per store, and a 62% increase in visitors, with a record number of 74.4 million customers entering retail locations.

After an expansion slowdown during the recession, Apple opened 24 new retail stores during the fourth fiscal quarter of 2010, 16 of which were overseas. This included flashy new flagship locations in Beijing, Shanghai, London and Paris.

The company noted that its four new stores in China are the highest trafficked in the world and among the highest performing. Apple also added Spain as its eleventh country with retail stores, after opening new locations in Barcelona and Madrid.

Apple's 2011 fiscal year, which began this month, will be "a great opportunity to continue growth," chief financial officer Peter Oppenheimer said, with 40 to 50 new stores planned (half of which will be outside the US) and a new wave of replacements planned for the company's existing, aging stores in the US.

Apple's retail program began in the US in May 2001 (expanding to 231 stores), then expanded to Japan in 2003 (now 7), the UK in 2004 (now 28 locations), followed by retail locations in Canada in 2005 (currently 18). In 2007 Apple expanded into Italy (which now has 4 stores), with locations in Australia (now 9), China (now 4), Switzerland (now 3) and Germany (now 4) all initially opening in 2008. The first store in France opened in 2009 (there's now 5), and Spain's two stores opened this year.
post #2 of 47
When are they going to do a replacement store for Manhattan Village (Los Angeles/South Bay)? Store is too small for the location... although I hope they can get another spot in the mall as it is a good location for me...
post #3 of 47
"The company noted that its four new stores in China are the highest trafficked in the world and among the highest performing. "

Now that is a real important point for the investor. It indicates that China really is a growing market. Since Macs have virtually 0% market share, there is enormous groth potential. In fact, it is the question I would have had at the conference call: "Does 'highest performing' include Macs? or just the iPs?"

Can't wait to see the regional sales breakdown.
post #4 of 47
Quote:
Originally Posted by jmmx View Post

"The company noted that its four new stores in China are the highest trafficked in the world and among the highest performing. "

Now that is a real important point for the investor. It indicates that China really is a growing market. Since Macs have virtually 0% market share, there is enormous froth potential. In fact, it is the question I would have had at the conference call: "Does 'highest performing' include Macs? or just the iPs?"


moscow is next
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #5 of 47
i admit i'm not in the retail sector and wonder if a 16% increase in retail outlets over the span of a year constitutes an aggressive move.
post #6 of 47
Quote:
Originally Posted by aaarrrgggh View Post

When are they going to do a replacement store for Manhattan Village (Los Angeles/South Bay)? Store is too small for the location... although I hope they can get another spot in the mall as it is a good location for me...

What an amazing problem to have eh? BTW how are those MS stores doing? I seem to remember they started in CA.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #7 of 47
Quote:
Originally Posted by jmmx View Post

"The company noted that its four new stores in China are the highest trafficked in the world and among the highest performing. "

Now that is a real important point for the investor. It indicates that China really is a growing market. Since Macs have virtually 0% market share, there is enormous groth potential. In fact, it is the question I would have had at the conference call: "Does 'highest performing' include Macs? or just the iPs?"

Strange (/sarcasm) ... didn't all the trolls on AI state categorically that no one in China would buy a genuine Apple product because a) They could not afford it ... and b) They would rather buy look a likes anyway.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #8 of 47
"The company currently operates 317 stores, 84 of which are outside the US."

Er, if by "currently" you mean at the of the fiscal quarter, you are correct. If "currently" includes today, that number sits at 319.
post #9 of 47
Quote:
Originally Posted by digitalclips View Post

What an amazing problem to have eh? BTW how are those MS stores doing? I seem to remember they started in CA.

One of them is not doing too bad, not sure about the other one.
See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
Reply
See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
Reply
post #10 of 47
Quote:
Originally Posted by newbee View Post

One of them is not doing too bad, not sure about the other one.

Now, now: let's not be cruel - they have 4 stores now.
post #11 of 47
I hope there's more stores soon in my neck of the woods.
http://www.grammarbook.com/punctuation/quotes.asp

Never argue with idiots, they'll bring you down to their level and beat you with experience. - a bumper sticker

Never quote idiots, they just clog up...
Reply
http://www.grammarbook.com/punctuation/quotes.asp

Never argue with idiots, they'll bring you down to their level and beat you with experience. - a bumper sticker

Never quote idiots, they just clog up...
Reply
post #12 of 47
Quote:
Originally Posted by emacs72 View Post

i admit i'm not in the retail sector and wonder if a 16% increase in retail outlets over the span of a year constitutes an aggressive move.

I was just going to comment on that.

Apple has been opening 40 stores a year for some time now. That's their normal expansion rate. If they open 50 stores instead, that would be a 25% increase. While I would consider that to be a good increase. I wouldn't classify it as 'massive".

The difference though, is that Apple committed to opening at least half of those overseas. That's a change.

In fact, they committed to opening a total of 25 stores in China by the end of 2011. That would mean that almost 20 new stores would be opening in China next year. THAT would be massive!

http://www.chinatechnews.com/2010/07...re-in-shanghai
post #13 of 47
And then Ireland, there are now 16.

Good one, Ireland. You're so funny, har, har.

Quote:
Originally Posted by melgross View Post

Apple has been opening 40 stores a year for some time now. That's their normal expansion rate. If they open 50 stores instead, that would be a 25% increase. While I would consider that to be a good increase. I wouldn't classify it as 'massive".

Just what I was thinking. Daniel Eran frothing about the mouth again. Here's the title for you Dan:

Apple plans it's usual retail expansion - continues to ignore Republic of Ireland.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
post #14 of 47
Quote:
Originally Posted by Ireland View Post

And then Ireland, they are now 16.

Good one, Ireland. You're so funny, har, har.



Just what I was thinking. Daniel Eran frothing about the mouth again.

"Apple plans it's usual retail expansion. Continues to ignore ROI."

Yeah. Opening a hundred stores next year would be massive.

Actually, it wouldn't, it would be nuts.
post #15 of 47
Quote:
Originally Posted by melgross View Post

Yeah. Opening a hundred stores next year would be massive.

Actually, it wouldn't, it would be nuts.

100? I wouldn't even call it "massive". I'd say the word would be "big-expansion".
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
post #16 of 47
Quote:
Originally Posted by Ireland View Post

100? I wouldn't even call it "massive". I'd say the word would be "big-expansion".

I think Apple is stretching it with 50.

Every year they're asked about their expansion plans, and if they're going to speed them up. Apple always replies that they do careful research into each site first. I'm not so sure how many sites they could do proper research on. They likely reject as many sites as they accept.
post #17 of 47
I am ecstatic about Apple's continued retail growth and expansion. But a little part of me wonders how much is too much. At what point does all this brick and mortar become an unsustainable drag? When does it become top heavy? I don't know, that's why I am asking.

I remember those Gateway stores that popped up all over the place, then just as quickly went out of business. Clearly there seems to be a lot more potential internationally, especially in China. I am guessing that in order for stores to flourish there has so be sufficient demand, especially for new products, not just legacy ones. What happens if Apple hits a flat spot with the latest and greatest? Can they "adjust" the number of stores without getting into trouble financially or PR-wise?

Someone brought up the Microsoft stores earlier. I, too, wonder how they are doing. The new Windows 7 phones will at least give them some new MS branded devices to feature. This may justify their hanging on a bit longer. But clearly they are not exploding like the Apple Store has. But MS, like Apple, has plenty of cash to keep their retail "hobby" going forever if it wants to.
A.k.a. AppleHead on other forums.
Reply
A.k.a. AppleHead on other forums.
Reply
post #18 of 47
We're annoyingly served by a distributor who's just relinquished exclusivity and suffer a 2 day wait for anything from the NZ Apple Store via Apple Australia, with a markup to match. Surely someone can tell Steve that New Zealand is not a state of Australia and yes, there are more people here than Tasmania, or WA, in fact any state except NSW and Victoria...
post #19 of 47
Quote:
Originally Posted by Robin Huber View Post


I remember those Gateway stores that popped up all over the place, then just as quickly went out of business. Clearly there seems to be a lot more potential internationally, especially in China. I am guessing that in order for stores to flourish there has so be sufficient demand, especially for new products, not just legacy ones. What happens if Apple hits a flat spot with the latest and greatest? Can they "adjust" the number of stores without getting into trouble financially or PR-wise?

Someone brought up the Microsoft stores earlier. I, too, wonder how they are doing.

I remember when the Gateway stores opened. Not a good analogy, since Gateway manufactured nothing - they were only trying to get a leg up on Dell, which didn't work (and look where Dell is now anyhow - sad, unless they get bought out by Oracle or HP that is.)

The Microsuck store that opened at the beautiful Sony Metreon Complex in San Francisco was quickly relegated to looky-loos and gamers eager to spend hours on the XBox - not exactly condusive to robust sales, and it just as quickly closed. I can't remember whether they had something like the Genius Bar (but it would have surely been named the Duped and Clueless Bar, and would have been inundated 24/7 with frustrated MS Box buyers asking endless questions about error codes ad nauseum).

The Sony store met the same fate, beset with gamers playing free PlayStation games all day, while browsers quickly passed through - it closed shortly also, and Sony sold its interest in the whole Metreon, which went bust, and was only saved by the huge theater complex within (now AMC). I've always thought an Apple store there would really be a great edition, and provide an anchor tenant, but they opened a few blocks away near Market street, and are doing landoffice business, as you would expect.

So Apple's stores are where folks come to the mountain to get inspired, educated, and have a great time (can't wait for the "Lounge" to appear here in Palo Alto, but doubt they can spare the square footage, since it is crouded every waking minute of every day I've ever been there).

As long as Steve keeps providing the integrated products that are easy and fun to use, folks will visit the store to see what all the excitement is, in my opinion.
post #20 of 47
Quote:
Originally Posted by Robin Huber View Post

I am ecstatic about Apple's continued retail growth and expansion. But a little part of me wonders how much is too much. At what point does all this brick and mortar become an unsustainable drag? When does it become top heavy? I don't know, that's why I am asking.

I remember those Gateway stores that popped up all over the place, then just as quickly went out of business. Clearly there seems to be a lot more potential internationally, especially in China. I am guessing that in order for stores to flourish there has so be sufficient demand, especially for new products, not just legacy ones. What happens if Apple hits a flat spot with the latest and greatest? Can they "adjust" the number of stores without getting into trouble financially or PR-wise?

Someone brought up the Microsoft stores earlier. I, too, wonder how they are doing. The new Windows 7 phones will at least give them some new MS branded devices to feature. This may justify their hanging on a bit longer. But clearly they are not exploding like the Apple Store has. But MS, like Apple, has plenty of cash to keep their retail "hobby" going forever if it wants to.

Gateway had several problems with their stores.

The first, and one of the biggest, is that they did what Apple is working very hard NOT to do. They put their stores wherever there was a vacancy. The lowest rent areas. These stores weren't very attractive.

The second was that you couldn't usually actually BUY anything at the stores, just look and order, and sometimes not even order. Usually, you had to go to a computer in the store, go to their web site, and order there.

Lastly, their people weren't all that helpful, or even friendly, from what I remember.

Apple's stores are very profitable. So far, they are the envy of the industry. $3.47 billion in sales this quarter. They are in very good areas, and are very heavily trafficked. Lines to buy are always pretty full.
post #21 of 47
Quote:
Originally Posted by fearless View Post

We're annoyingly served by a distributor who's just relinquished exclusivity and suffer a 2 day wait for anything from the NZ Apple Store via Apple Australia, with a markup to match. Surely someone can tell Steve that New Zealand is not a state of Australia and yes, there are more people here than Tasmania, or WA, in fact any state except NSW and Victoria...

There has to be a few million people within an hour from the store, or there may not be one.
post #22 of 47
Quote:
Originally Posted by AppleInsider View Post

...chief financial officer Peter Oppenheimer said, with 40 to 50 new stores planned (half of which will be outside the US) and a new wave of replacements planned for the company's existing, aging stores in the US.

What if they open 50 new stores and expand 100 existing stores?
That would be MASSIVE!
post #23 of 47
Quote:
Originally Posted by fearless View Post

Apple Store New Zealand

According to ifoapplestore.com Apple sent their retail representatives to New Zealand a year and a half ago. Maybe they think that there isn't room for a lot of stores so they are looking for the perfect location. They have been looking for a site in Berlin for a much longer time and still no news.
post #24 of 47
Quote:
Originally Posted by digitalclips View Post

What an amazing problem to have eh? BTW how are those MS stores doing? I seem to remember they started in CA.

I heard they suffered a massive blue screen of death which killed their customers and employees.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #25 of 47
Quote:
Originally Posted by columbus View Post

Now, now: let's not be cruel - they have 4 stores now.

Oh, dear... I just love how the in-store images they chose all look completely barren of customers. Ouch!

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #26 of 47
Quote:
Originally Posted by Marktrek View Post

According to ifoapplestore.com Apple sent their retail representatives to New Zealand a year and a half ago. Maybe they think that there isn't room for a lot of stores so they are looking for the perfect location. They have been looking for a site in Berlin for a much longer time and still no news.

Bummer! Will someone tell The Steve that the place is beautiful and he would really like it?
Maybe that will get us past the 'must have a few million within an hour of the store' rule that Mel mentioned before.

We believe in quality, not quantity here anyway.
..... the greatest fame comes from adding to human knowledge, not winning battles.
Paraphrased from Napolean Bonaparte, 1798
Reply
..... the greatest fame comes from adding to human knowledge, not winning battles.
Paraphrased from Napolean Bonaparte, 1798
Reply
post #27 of 47
I think rosewood tables with dark maroon carpeting for a more warm, rich and inviting look!

Keep the glass and the aluminum, but right now I feel I'm walking into a Finnish "Crate & Barrel" lately!

Oh, well!
post #28 of 47
Quote:
Originally Posted by jmmx View Post

"The company noted that its four new stores in China are the highest trafficked in the world and among the highest performing. "

Now that is a real important point for the investor. It indicates that China really is a growing market. Since Macs have virtually 0% market share, there is enormous groth potential. In fact, it is the question I would have had at the conference call: "Does 'highest performing' include Macs? or just the iPs?"

Can't wait to see the regional sales breakdown.

First, there are not 4 new stores in China. The article is wrong. Only 3 are new - the Sanlitun location has been open for over 2 years. But jmmx is completely off base. Macs are all over the place in the major cities, as are the iPhones, long before they were officially sold here. They are both brought in on the gray market in huge numbers as there is a 17% tax imposed on Apple products in China because they are a foreign company. This is even though they are made in China. As to highest performing products, Macs are the most significant factor. Unfortunately, many, if not most, are installed with MSFT Windows buy consumers as Apple has done a very poor job of educating the market on the advantages of OS X over Windows.
post #29 of 47
Quote:
Originally Posted by Robin Huber View Post

I am ecstatic about Apple's continued retail growth and expansion. But a little part of me wonders how much is too much. At what point does all this brick and mortar become an unsustainable drag? When does it become top heavy? I don't know, that's why I am asking.

I remember those Gateway stores that popped up all over the place, then just as quickly went out of business. Clearly there seems to be a lot more potential internationally, especially in China. I am guessing that in order for stores to flourish there has so be sufficient demand, especially for new products, not just legacy ones. What happens if Apple hits a flat spot with the latest and greatest? Can they "adjust" the number of stores without getting into trouble financially or PR-wise?

Someone brought up the Microsoft stores earlier. I, too, wonder how they are doing. The new Windows 7 phones will at least give them some new MS branded devices to feature. This may justify their hanging on a bit longer. But clearly they are not exploding like the Apple Store has. But MS, like Apple, has plenty of cash to keep their retail "hobby" going forever if it wants to.

What the heck are you asking when it comes to Apple's risk of opening too many stores? Try to study up on what is going on before you ask such stupid questions. Apple has the highest sales per square foot of any retailer in the world!!!!!!! That says it all.
post #30 of 47
so how do i get a iphone on a plan
i have jumped from apple store to telstra( australia ph network) and back and back again x4 and still no phone.
pimply kids with blue shirts at apple stores tells me i have to line up in the morning before the fancy apple store opens and wait. first in best dressed....take a number and be allocated at some point throughout the day to sit with a plan /ipone guy to conduct the exercise....yeh right. Meanwhile 6 other pimply kids are walking around with the "can i help you tune whilst wiping down ipads". So i go in later and still cant fit me cos you gotta come back tommorow and do it again....apple stores are managed like shit. they would have pushed through double the phone deals in that day i was there. telstra shops are just as bad saying no we dont have any phones so therefore come back another day and TRY again......yeh right. there is not one sales guy that said. yes sir i will fit you in the next half hour or took my details and made a definite booking for the simple process to happen. Apple your forgetting tomanage the store people to provide a customer service....dont just look good with ya shiny shop fittings.
post #31 of 47
Quote:
Originally Posted by melgross View Post

There has to be a few million people within an hour from the store, or there may not be one.

No, I know of a store with only about 200,000 folks within an hour's drive.
.
Reply
.
Reply
post #32 of 47
Quote:
Originally Posted by Hiro View Post

No, I know of a store with only about 200,000 folks within an hour's drive.

Such as? This is basically what Apple has been saying.
post #33 of 47
Quote:
Originally Posted by melgross View Post

There has to be a few million people within an hour from the store, or there may not be one.

Auckland City with a population of 1.5 million is also neighoured by a city 40 minutes away with a population of 400,000 - population density isn't the issue here. Several cities in Australia which are smaller than Auckland have Apple Stores, and these cities are miles away from any other city, meaning that a city of only 1 million is considered large enough. Besides, Zurich where I live, has 2 Apple Stores and a population of 300,000.....
post #34 of 47
Quote:
Originally Posted by FreeRange View Post

First, there are not 4 new stores in China. The article is wrong. Only 3 are new - the Sanlitun location has been open for over 2 years. But jmmx is completely off base. Macs are all over the place in the major cities, as are the iPhones, long before they were officially sold here. They are both brought in on the gray market in huge numbers as there is a 17% tax imposed on Apple products in China because they are a foreign company. This is even though they are made in China. As to highest performing products, Macs are the most significant factor. Unfortunately, many, if not most, are installed with MSFT Windows buy consumers as Apple has done a very poor job of educating the market on the advantages of OS X over Windows.

I wanted to follow up on this (I live near the Sanitun store). American news really gives a distorted view of China, and so therefore people don't realize some of the reality here.

China is still firmly a developing country, but the difference in development between 3 of the 4 centrally-administered cities (Tianjin, Beijing, Shanghai) and the outlying areas is stark. The richer cities have average incomes on par with some of the poorer U.S. states (think Alabama, Mississippi, etc.).

Further, China's middle class is growing very fast. It's still very small, as a percentage of population...(no one knows exactly...perhaps 10% closing on 20%?). Let's use that as an example. If 10% of the Chinese people could be considered middle class, the percentage sounds tiny, but the number is 130,000,000 people. Double that to 20% and you're starting to talk about a middle class that's equivalent to the entire American population.

The fact is the nouveau-riche here in China want to show off their newfound wealth a little bit. And Apple products, though rejected by the mainstream (my online banking in China, for example, only works in Windows), are still nevertheless seen as status symbols. The geeks I know here with a bit of money buy a macbook, and an iphone, and a nano, and an ipad...to go along with the thinkpads they already have.

This market is going to be huge for Apple; they are smart to expand here rapidly.
post #35 of 47
Quote:
Originally Posted by SpamSandwich View Post

I heard they suffered a massive blue screen of death which killed their customers and employees.

I actually lol'd.
post #36 of 47
Quote:
Originally Posted by melgross View Post

There has to be a few million people within an hour from the store, or there may not be one.

There are - a couple. More people than sheep where we are...
post #37 of 47
India please?
"Don't be a dick!"Wil Wheaton
Reply
"Don't be a dick!"Wil Wheaton
Reply
post #38 of 47
Quote:
Originally Posted by Futuristic View Post

India please?

In my opinion, Delhi, Mumbai, Bangalore, and Kolkata could each support one Apple Store.
Mac user since August 1983.
Reply
Mac user since August 1983.
Reply
post #39 of 47
Quote:
Originally Posted by digitalclips View Post

What an amazing problem to have eh? BTW how are those MS stores doing? I seem to remember they started in CA.

lol. you are right! i totally forgot they had one!
post #40 of 47
Quote:
Originally Posted by mcarling View Post

In my opinion, Delhi, Mumbai, Bangalore, and Kolkata could each support one Apple Store.

I agree, although I would add Hyderabad to the list as well.
"Don't be a dick!"Wil Wheaton
Reply
"Don't be a dick!"Wil Wheaton
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Apple plans massive retail expansion for 2011