Even Apple Stores Struggle

We don’t see much data out there on the sales figures of Apple Stores. But a Barron’s article (via Seeking Alpha) quotes an analyst saying that same-store sales at the computer giant’s 250 stores dropped 17.4% year over year in December.

We find this odd, considering that in its latest quarter, Apple posted record revenues and profits. It seems they sold more computers, iPods and iPhones than ever.

So what’s going on here?

The article says that traffic at the stores was only down 1.8% Are people just going into these ultra cool stores just for the experience and not purchasing anything? Were Apple’s stores just intended as marketing vehicles in the first place?

Maybe people are just buying Apple’s products at other retail outlets where things are lower priced.


5 Responses to “Even Apple Stores Struggle”

  1. 1 James February 2, 2009 at 7:50 am

    The Apple stores favor high end enclosed malls where all store sales are down. The stores themselves were and are great marketing vehicles, and like the Bose stores feature a great product from a single company.

  2. 2 BB Not Helping February 2, 2009 at 11:32 am

    When a store like Apple store is averaging $2,000 psf in sales a 17.9% drop year over year is not something to worry about. It’s all relative. We worry about a restaurant doing $500 psf dropping 17.9% not Apple Stores…

  3. 3 Chris Rodriguez February 2, 2009 at 3:00 pm

    Apple has shown record sales and profits because they sell digital products (music and iPhone apps) and have a $0 cost for these goods. They simply provide the distribution channel and have no inventory or development costs. Pure profit.

  4. 4 Larry Ice February 3, 2009 at 12:39 pm

    Look around. You will NOT find deep discounts on Apple products anywhere – unless you’re shopping discontinued products. Apple has a very strict pricing policy with its retail outlets so that, other than avoiding sales tax, you won’t find a wide disparity in price when shopping in an Apple store, at Apple online, or at Best Buy or any other retailer. Good for them. So – I disagree with the suggestion that people are just buying Apple goods at cheaper outlets. I think people are just generally cutting back on discretionary spending, but that in the long run, Apple will be just fine! They are a well run company that makes great products. And – they have a very strong balance sheet and no debt.

  1. 1 WHAT? Microsoft is Opening Stores? « Counter Culture Trackback on February 13, 2009 at 7:05 am

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