Fewer cars are parked at malls – bad for Apple?

“Apple could be the electronics retailer most exposed to a troubling retail trend, according to JPMorgan,” Anita Balakrishnan reports for CNBC. “Fewer cars have been parked at U.S. retailers over the past month than over the same period last year, according to satellite imagery of parking lots analyzed by Orbital Insight and JPMorgan.”

“Because Apple does so much of its annual business over the holidays, lukewarm consumer demand would impact Apple more than other hardware makers, JPMorgan analyst Rod Hall told CNBC’s ‘Power Lunch’ on Friday,” Balakrishnan reports. “‘It’s possible that consumer trend will recover and get better as the year wears on here, but if it were to be weak, that would negatively affect Apple,’ Hall said. ‘We’re not saying this is the only data point you ought to be focused on. We just think this it’s very interesting that that activity level is down year over year.'”

“To be sure, fewer drivers doesn’t necessarily mean fewer buyers, as shoppers continue to move online. This year, both Black Friday and Cyber Monday saw record-setting revenue, lifted by online sales,” Balakrishnan reports. “[On Black Friday], an Apple Watch was sold every 13 seconds and an iPhone 7 was sold every 30 seconds in the U.S. on eBay, for instance… Though most analysts expect iPhone 7 sales to rise, Hall said that JPMorgan expects handset sales overall to fall 11 percent compared to last year. Personal computers are even more at risk, and could also see a disproportionate impact from a shopping slowdown, Hall wrote.”

Read more in the full article here.

MacDailyNews Take: Pap.

Betteridge’s Law of Headlines remains soundly unbroken here.

Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013

[Thanks to MacDailyNews Reader “RK” for the heads up.]

35 Comments

    1. That’s the most absurd click bate i’ve ever seen, this anita and jpm should be investigated by sec as clearly they are shorting aapl. there’s no conceivable link between aerial snapshots to in store sales much less online sales…. very stupid

  1. I seen this CLOWN from JPM on cnbc. What a reach for bashing the stock. I can’t believe these A-holes have more influence the the actual CEOs, conference call.
    Well, when a conference call comes on, the company shines for about 1-2 weeks, then the Analcysts come on the remainder of the quarter and expounds their customized BS.

        1. Really. The only reason I stop in one any more is to check out new hardware. The last time was to check out the iPad Pro and Pencil a couple of months after they intro’d.

          Apple Stores appear to be a “go to” place for young people. Lots of families, too… with bored (usually) SOs standing around and kids playing with any iPhone or iPad within reach.

          The last time I went there were a ridiculous number of people standing around in groups looking over hardware or just talking with staff. That’s pretty much how it’s been for a few years now.

      1. I spent too much time at a mall yesterday, so I conclude; fewer cars at malls means less human hours spent at malls. This equals healthier/happier humans. Make culture great again.

    1. That was my thought if a thought on the matter was needed to be had.

      Bottom line is the article should look at the impact at the other mall stores in a truly weak position but that wouldn’t give them the web-bait headline they need.

  2. I mostly buy at the online Apple Store. Especially at the launch of new product, it’s faster. The physical store is for when I need service or I want to look at accessories before I buy. Anyway, the stores around me are always packed.

  3. 1. More people probably are ordering through the carrier these days because of the carrier deals.

    2. The new Macs and Apple Watches were/are on back order. Why go to the store to purchase?

    Yesterday was day 85 of sales for the iPhone 7/7 Plus. According to Mixpanel the iPhone 7/7 Plus had 20% usage. Last year, on day 85 of sales, the iPhone 6s/6s had 13.56% usage. The iPhone 7/7 Plus percentage rate of increase has slowed over the last week or so, but it also slowed around this time last year as well. The percentage will probably begin to move back higher next week and have a significant spike around Christmas Day like last year.

    The iPhone 6s/6s Plus at the beginning of the December quarter had 32.38% usage. The 6s/6s Plus usage is now at 35.78%. This is a better percentage increase than the second tier phone (iPhone 6) did in the December 2015 quarter.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.