“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.]
Parking for Apple Store Village Pointe in Omaha is a PITA. I would go there more often if it wasn’t.
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
Everything in a Apple Store can be purchased at the Apple site,
buyers know that, don’t want to go to the mall, go online…
And given Apples’s new “vapor-wear” marketing approach, the stores aren’t stocked with the new products.
I’ve always purchased iPods and iPads online, as I desire the engraving feature.
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.
fake news
Apple stores are so busy, nobody goes there anymore.
right on Yogi Berra!!
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.
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.
When MDN posts an article like this it should be clearly tagged ‘Fake News’!!! 🖖😀⌚️
I did not take shit today. Fewer sales for Apple?
Insufficient information. Do you shop online while you’re on the loo?
The day ain’t over yet so there is still hope…
Most certainly. Apple does best when you’re “full of it”.
Apple stores are also service centres, fewer people in them could mean less money spent on servicing products, it could also be a good sign for them.
Could be that all those cars occupants are only going to the Apple Stores.
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.
We know the Microsoft store has lots of empty space and no waiting.
That’s crazy. It’s a well known fact that when people go to a mall they go into very single store and spend equal time and money in each.
The tree huggers have finally gotten through to the masses and now they are all carpooling. Now doesn’t that just make you feel all warm and fuzzy inside? 😉
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.
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.
Grasping at straws.
Yeah, EVERYTHING is bad for Apple.
(On the other hand, the only people driving to malls these days are people going to the Apple Store.)
Ironically I did notice an significant drop in mall traffic the times I visited our local mall while the Apple Store was closed for its major renovation. It was that way the entire time while they were shut down. I don’t have any access to the data but I’d be curious how many retailers in the mall noticed any change during that time. I suspect they all cheered when they reopened.
Well if it gets really busy and parking space is limited, you could always park in the Microsoft Store.
Russia must have hacked the sattelites too.
Augusta, GA was the first mid-market Apple Store. It was crowded the day it opened and remains so today. It’s a courtyard (outside) store. It is a destination store at Augusta Mall. The parking is most scarce near the Apple Store. Apple is raking it in at this location. I don’t know how the rest of the mall does.
Shop at malls: Fight for parking or walk 1/2 mile, wait in huge lines, deal with asshole people, dodging left and right. Waste your precious day. Online: click, buy. 5 Minutes. Not really so hard a choice now, is it?
Ample make apple de cramped cars of Uber Ample can’t mrake a car the tesla czar is bayter dan da Ample Carr. Cars dang don’t park in mall because aple headphongs are avlprhf in wifi over amazon but alpe can’t even make sori caompleyr with Alexa or cortanglo
Ordered online, store pickup:
I Looked online for two weeks to find a space gray 42 and rose gold 38 for same day/same store pick up. Friday they were available for pick at the Palo Alto (Stanford) store, I ordered immediately. The parking lot was 75% full but the Apple Store seemed very busy. Maybe 200 shoppers at the dinner hour. We were greeted within a minute handed off to a person who scanned our QR code and had the watches in another 15 minutes. There were about 5-10 people ahead of us picking up merchandise. I ordered online w/store pickup so I had the watches by Christmas.
Fewer update products that have indefinite lead times. Stores filled with outdated products. If Tim keeps exiting products like routers, displays etc there will be no reason to have Apple stores. Do you really think Tim and current executives would have ever built expensive Apple stores or a campus like that? No. who is getting fired for no wireless ear buds? Who gets fired for not forecasting enough to 7plus phones. Who gets fired for not updating products for 4 years? Who gets fired for no streaming? No 4K on Apple TV? The company is run by people completely disconnected from what made the company great.
The retailer affected most would be the Windows Store co-located to an Apple Store. In Pentagon City Mall Apple Store, currently being renovated, there is a nearby Windows Store. Even during the busiest times, the Windows Store has more employees than there are customers. Granted, this is just one store. However, it’s not that difficult to extrapolate the effects of this “not enough cars are parked” argument.