“Apple Inc., which counted on China for more than 15 percent of sales last year, will open its 10th store in the country’s mainland this week,” Bloomberg News reports.
“The retail space is set to open Jan. 10 at China Central Mall in Beijing’s Chaoyang district, the company said in a statement on its China website today,” Bloomberg News reports. “Chief Executive Officer Tim Cook has pledged to double outlets to 22 in Greater China to meet demand in the world’s most populous country. The new store brings the nationwide total to 13, including three in semi-autonomous Hong Kong.”
“The company has trimmed its initial plan for adding stores,” Bloomberg News reports. “Former head of retail operations Ron Johnson, who left Apple in 2011, had set an earlier target of 25 stores in China by February 2012.”
Read more in the full article here.
Great news for apple, the expansion is booming
There is still the perception on Wall Street that almost no one in China can afford Apple products despite the fact that Chinese consumers had asked for more Apple stores. Since there is quite a reduction in the number of intended Apple retail stores, it’s possible economic conditions have changed drastically in China over the past year or so.
It’s not the “economic conditions”.
Since the time that Apple set its target of 25 stores, over a couple years ago, the strategy changed from a mix of Apple stores like in the US, to only showcase stores like in NYC. That being the case, it takes longer to find the right property. As in NYC, Apple can wait years for the property they are interested in, to become available. Look at Shanghai’s 3 stores. One is centered between 3 of the World’s tallest buildings with an entrance reminiscent of the 5th Ave Cube. The other 2 are in big locations on the two most famous shopping streets in the city. The strategy is exactly like in NYC.