Categories

Teenager stores

The Apple stores are now 13 years old.[1] In the first full year of operation (2002) the stores generated revenue of $282 million. In the last full year (2013) the revenues were $20.228 billion. Quarterly sales during the last seven years are shown below:

Screen Shot 2014-05-20 at 5-20-11.16.21 AM

Additional details regarding average visitors per employee per quarter, average visitors per store per quarter, average retail profit/employee and visitor, average revenue per store, employment and visits correlation, employment per store and in total, stores open over time, visitors over time, average revenue per visitor, capital asset purchases and estimated cost structure per visit are shown below:

Screen Shot 2014-05-20 at 5-20-11.19.51 AM

The Apple store concept has reached teenage years and it seems a good time to renew their character.

Notes:
  1. The first store at Tysons Corner in  McLean, VA opened on May 19 2001 []
  • Sacto_Joe

    In 1984, my wife began selling Apple products through an Apple-only dealership. It has been an amazing journey to watch. But one thing never changed, and that is the excitement of the retail employees. That is the true rock upon which the success of the Apple stores is built. The same kind of excitement is found in those who purchase Apple products. That excitement is the true magic of Apple. Long may it grow!

    • gprovida

      Aside from pejorative fanboy junk or religious comparisons, Apple users new and old have been delighted with their experience versus alternatives and this has translated into the enthusiasm that few consumer products or companies have achieved. To be a vendor, retail sales, support specialist, etc., in this situation is great – a partnership with customers versus adversary.

    • stefnagel

      Ten years ago, I was delighted by the success of the iPod. But my expectations were measured: I hoped only that iPod cash would support continued development of the Mac OS. I remember stories saying that Apple could not afford OS development. Today we wonder if Apple will continue the Mac at all.

      Insert irony icon here.

      • twilightmoon

        The Mac is the development platform upon which all their other products are created. I see Apple continuing to develop the Mac so long as it is profitable and so long as they use it themselves to create the rest of their products. They dropped the XServe because it did not sell in the volume required to be profitable to continue development. That is to say that it may have been above break even, but Apple has a finite amount of engineers. So even a product that they can make a profit on may not make enough money to soak up engineers to continue development. If Apple had access to an unlimited number of engineers, it might be possible to double or triple their product footprint, but in the real world they choose to keep their product footprint very small so they can highly manage all of it.

        Macs are safe for the foreseeable future, but there could come a day when the iPad or some other product could sell in volume and replace enough of the capabilities of the Mac to finally put that product out to pasture, but not for awhile, certainly.

  • Sacto_Joe

    The other thing about this article I found interesting was the first chart, entitled Apple Retail Revenues. It clearly shows that something systemic happened to Apple revenues in 2010-2011. The pattern markedly changed, with huge spikes during the Winter quarter becoming the norm.

    It would be useful to add a smoothing line in that shows us the overall growth in revenue on a yearly rather than a quarterly basis. One might then be able to estimate what the impact would have been on revenue if Apple HADN’T moved its release dates for the iPhone substantially closer to the holiday seasons….

  • Mayson

    One question I have after.reading reports of declining same store sales. Apple have recently instituted pickup at stores of items ordered online. How are these counted: are they counted as store revenue or just as online. I could imagine that this might skew the revenue per store somewhat.

    • http://www.asymco.com Horace Dediu

      Revenues per store reflect Apple’s product mix changes. If you see the Average revenue per store graph you’ll note that each rise (seen on the trailing 4 quarter average line) is coincident with the introduction of a new category and each plateau (not discernible decline so far) is coincident with a lack of new category launches.