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Apple has more retail stores in Pennsylvania than China

post #1 of 17
Thread Starter 
A new profile on Apple's retail presence in China argues that the company has far too few brick-and-mortar locations to meet rabid demand for products among the nation's 1.3 billion people.

With just six stores in Greater China, Apple has one retail location per 216 million Chinese people, Reuters highlighted on Wednesday. In comparison, the state of Pennsylvania has a total of eight stores for a population of 12.7 million people.

Former Apple retail chief Ron Johnson said in early 2010 that Apple had plans to open a total of 25 retail stores in China. The company declined to explain why it failed to meet that original target, but Wednesday's report noted that growth could be held back by red tape involving new stores.

Demand for Apple products in China is only expected to increase as the company this week reached a settlement to use the iPad brand in China. That's expected to clear the way for the company's new third-generation iPad to go on sale in mainland China.

In cities where Apple has not yet expanded its retail presence, there are even some high-profile knock-off stores designed to look just like Apple's own retail operations. At one such store in Kunming, China, the location features a winding staircase and employees wearing blue t-shirts with Apple logos and name tags.

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Apple Store Sanlitun in Beijing, China | Copyright: 变脸.


The company's first Chinese store opened in Beijing in 2008, just prior to the Olympic games. The company's second store also arrived in Beijing in June of 2009.

Market analysts such as Chris Whitmore of Deutsche Bank see Apple having "enormous" potential in China. In April, he predicted that Apple will sell at least 35 million iPhones in China in 2013.
post #2 of 17

Of course, I suppose it could also be argued that they have too many stores in Pennsylvania... (kidding)

post #3 of 17
Quote:
Originally Posted by BlueDjinn View Post

Of course, I suppose it could also be argued that they have too many stores in Pennsylvania... (kidding)

Considering I live in Pennsylvania, and the closest one is about 2 hours away from me, I'd argue Apple needs a few more. At least another store-within-a-store that's closer to Altoona. Best Buy in Altoona isn't authorized to sell Macs, meaning I have to travel to Best Buy in State College (PSU-main, 40 minutes away) if I want to buy a Mac or Mac accessories locally. 

post #4 of 17

If Reuters wanted to know what was up with Apple Retail in China, they should have read the article from M.I.C. Gadget at this link-

http://micgadget.com/24345/upcoming-china-apple-stores-hong-kong-shenzhen-chengdu-guangzhou-dalian/

 

It is an interesting world we live in when a large (and apparently uninformed) news organization like Reuters doesn't have the resources to compete with a Chinese blog!

 
post #5 of 17

When it comes to growth, Apple isn't as aggressive as some companies would be.  Apple deliberates and takes its time.  A company needs to have balanced growth and I think Apple is succeeding at that.  There's no point in putting more stores in China if production can't meet demand as it is.

post #6 of 17
Quote:
Originally Posted by JerrySwitched26 View Post

aschina-080718-1.jpg

 

Very nice architecture here.  I like the "revealed" girders on the upper right, and how they echo the revealed portion of the grey mass through the clear glass.  The grey mass also forms a bridge to the older building on the left, with the shape of the bridge echoing the square shape of the connected older building. The new window mullions also echo the ones in the glass portion of the new building.

 

It is simple, playful and effective.


 Why aren't the corners rounded? ;)

post #7 of 17

You can technically add another one as one of the first Apple Store withing a store on Walmart opened last month (Pics). I live in PA and I have 1 official Apple store 6 miles away 2 inside Bestbuy and one inside walmart all 3 withing 8 miles. 7 More official Apple store withing 50 miles. Its good around here.

post #8 of 17
Quote:
Originally Posted by Constable Odo View Post

When it comes to growth, Apple isn't as aggressive as some companies would be.  Apple deliberates and takes its time.  A company needs to have balanced growth and I think Apple is succeeding at that.  There's no point in putting more stores in China if production can't meet demand as it is.

 

 

Quote:
Originally Posted by NapyBlue View Post

If Reuters wanted to know what was up with Apple Retail in China, they should have read the article from M.I.C. Gadget at this link-

http://micgadget.com/24345/upcoming-china-apple-stores-hong-kong-shenzhen-chengdu-guangzhou-dalian/

 

It is an interesting world we live in when a large (and apparently uninformed) news organization like Reuters doesn't have the resources to compete with a Chinese blog!

 

 

The upshot remains - Apple seems quite shy of its own goal of 25 stores in China by end of 2012. Has the plan changed because that was Ron Johnson's goal and Cook didn't/doesn't agree? Or is it a supply issue as indicated by Odo? Or is it the challenging logistics of operating in China and of retail expansion in general?

post #9 of 17
Quote:
Originally Posted by NapyBlue View Post

If Reuters wanted to know what was up with Apple Retail in China, they should have read the article from M.I.C. Gadget at this link-

http://micgadget.com/24345/upcoming-china-apple-stores-hong-kong-shenzhen-chengdu-guangzhou-dalian/

 

It is an interesting world we live in when a large (and apparently uninformed) news organization like Reuters doesn't have the resources to compete with a Chinese blog!

 

Thank you for sharing the link... Very interesting.  It looks like there will be some significant store openings in China by Q1 2013 

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #10 of 17

Wait, are they just counting the real Apple Stores in China? Or are the including all the fake ones?

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #11 of 17
Quote:
Originally Posted by Suddenly Newton View Post

Wait, are they just counting the real Apple Stores in China? Or are the including all the fake ones?


Ah, good point. So Mr. Johnson was talking about 25 real and fake Apple stores. Is the total ≥ 25 even with the fake ones?  Or was he counting JC Penney stores too?

post #12 of 17

Sam,

 

Your headline reads "Apple has more retail stores in Pennsylvania than China".

 

You probably meant "Apple has more retail stores in Pennsylvania than in China".

 

"...Pennsylvania than China" suggests that Apple has more stores in Pennyslvania than China has stores in Pennsylvania.

 

Best regards,

Mike Herrinton

post #13 of 17

Hmmm. Pennsylvania has about 2 million residents per store. How about using a state with fewer residents per store. New Jersey's population about 8.8 million people and 11 stores, for about 800k residents per store. NJ also has more stores than China. 

post #14 of 17
And more than in Ireland where we have NONE!
post #15 of 17

You would think the capital of the state would get some love. Living between Hershey, PA and Harrisburg, PA (The Capital) the closest is the park city mall for me. Only a good 40 minute ride to get a case replacement. 

post #16 of 17
and in the United Arab Emirates, one of the richest countries in the world, we have a grand total of none.
post #17 of 17
well... i was told that one of the stores in Shanghai has the 2nd best sales numbers next to NYS..
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