Apple’s retail stores generate huge sales

“The party inside [Apple’s Midtown Manhattan] store and in 203 other Apple stores around the world is one reason the company’s stock is up nearly 135 percent for the year. By contrast, high-flying Google is up about 52 percent, while the tech-dominated Nasdaq index is up 12 percent,” Katie Hafner reports for The New York Times.

“The popularity of the iPhone and iPod and the intended halo effect those products have had on sales of Apple computers are behind Apple’s vigor. But the company’s success in retailing, as other competitors struggle to eke out sales growth, has been the bonus,” Hafner reports.

“Apple now derives 20 percent of its revenue from its physical stores. And the number is growing. In the fourth quarter in 2007, which ended Sept. 30, Apple reported that the retail stores accounted for $1.25 billion of Apple’s $6.2 billion in revenues, a 42 percent increase over the fourth quarter in 2006,” Hafner reports. “Apple stores generate sales at the rate of about $4,000 per square foot a year, according to a report last year by Sanford C. Bernstein analysts. As other electronics makers like Dell, Nokia and Sony still struggle to find the right retail formula, Apple seems to have perfected it.”

“Apple stores encourage a lot of purchasing, to be sure. But they also encourage lingering, with dozens of fully functioning computers, iPods and iPhones for visitors to try — for hours on end,” Hafner reports.

“‘Whenever we ask consumers to cite a great retail experience, the Apple store is the first store they mention,’ said Jane Buckingham, president of the Intelligence Group, a market research firm in Los Angeles. ‘Basically, everything about it works. The people who work there are cool and knowledgeable. They have the answers you want, and can sell you what you need. Customers appreciate that. Even the fact that they’ll e-mail you a receipt makes you feel like you’re in a store just a little bit further ahead of everyone else,'” Hafner reports.

Full article here.

[Thanks to MacDailyNews Reader “Winston” and “Citymark” for the heads up.]

22 Comments

  1. Good thing they’re not trying to connect a Mac running Leopard to a server running Tiger. Because it’s about bloody impossible. And don’t try to change permissions on a folder, OH NO! Because it will lock you out of it. And if you can actually MOUNT the server… oh wait, YOU CAN’T! Where is the mount point? Not on the desktop. If it in “PLACES”? NOPE! Not there either!
    FIX THIS P-OS, APPLE!

  2. @Leopard Hater

    You had me until you said the Desktop should be the “mount point”… you dufus. The desktop is a folder inside a user’s home folder. Not a place to be “mounting’ drives, at least not in the correct sense of the word on a UNIX-based OS.

  3. @ Leopard Hater:

    Sure there seems to be issues when networking between Leopard and Tiger, I have encountered some issues myself. But after updating to 10.5.1 these issues have practically dissappear. I suggest you update all of your machines (to 10.5.1 and to 10.4.11).

    10.5.2 promises to fix all of the remaining issues.

    Now, if you can count to 10 and chill out a bit, you’ll find out there’s a few workarounds even in 10.5.0.

    For example: the Network icon can be accesed by pressing Command + Shift + K.

    Also, some of the issues are Router related. My internet connection was dropping after a few minutes even pre-Leopard (10.4.11). I updated the router’s firmware and now all is well.

    Check your router’s firmware, mine’s last updated dated back to 2004. That’s was when iPods weren’t able to play videos.

    I garantee you are going to change your nickname to “Leopard lover” if you follow my directions.

    Regards,
    fef, Leopard’s passionate lover

  4. @ Leopard Hater
    @ ChrissyOne
    @ CoolFactor

    You can configure the Finder to show (or not to show) mounted disks on the desktop.

    Simply, on the Finder, go to menu Finder > Preferences > General > “Show these items on the desktop” – and click whichever you like.

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