Information provided by sources reveals there are few common factors among Apple’s highest-grossing stores that might explain why their revenues or sales of service-related products are at the top of the charts. Instead, each store has its own operations and revenue personality, dependent upon the staff, customers, regional demographics, size of the store, and to some extent the region where the store is located. Categorizing a specific store, or trying to copy a store’s success to others is very elusive, say those in the know. For example, the chain’s top performers in the United States include the Tysons Corner (Virg.) store, the first store to open back in 2001. But other successful stores have been open less time, are both large and small, and are scattered across all regions of the country. read more…
An eBay seller is offering two sample sheets of Rex Ray holiday wrapping paper that were commissioned by Apple in 2002 for purchase at their retail stores. The designs are called “Pods” and “Fields,” and are abstract in style. The wrapping paper sold for $5 a roll, or was free with a purchase over $50. But the ungeni reports that the paper didn’t fly off the shelves, even when offered free. Both eBay items are 33″x50″ and mounted on plastic as if they’ve been displayed. Coincidentally, the items have been posted for nearly four days without any bids ($800 minimum bid). It’s not clear how the pieces were acquired by the seller. Update: The wrapping paper auction ended with no one bidding on the wrapping paper.
For the first time since it was introduced on June 29th, the iPhone is available at every Apple store. The company sold 270,000 iPhones during the last two days of June, and AT&T activated 146,000 of those phones during the same period. Since then availability hit a low of just two stores, but has slowly increased to the point that Apple felt comfortable to distribute iPhones to its 18,000 employees as a gift. There are five stores closed for renovations, and which are listed as “red” on Apple’s iPhone availability Web page. But presumably those stores would have iPhones if they were open.
The U.S. Trademark and Patent Office has approved Apple’s application for a trademark on the One to One education and training service offered in its retail stores. In its application date July 20th, the company says the term was first used “at least as early at 05/02/2007. In its application, Apple describes the service as, “Education and training services,” and gives examples of the service, including “maintenance and consulting services” and “computer diagnostic services.” In line with Apple’s usual secrecy procedures, the trademark was first filed in Trinidad/Tobago on March 21, 2007, a common procedure among companies to establish “first use” rights to a term without publicly revealing the trademark. Download (pdf) the trademark here.
Apple has changed how it measures revenue performance by its retail stores, dropping a method that compared figures to U.S. channel partners, and switching to a method that compares results to other Apple segments. The company also began accounting for AppleCare and .Mac revenues over the life of the products, rather than logging the revenue immediately. The changes tend to increase the profit that stores report, but also decrease reported revenues as they’re spread over a longer period of time. read more…
Apple’s retail stores helped carry the company to increased revenues and the largest number of Mac sales in history. The stores posted revenues of $915 million for the third quarter of fiscal 2007, short of a record but an increase from both the previous year and quarter. Using newly-announced accounting rules for the retail operation, profit increased to $184 million for the quarter, a new record. Sales of computers at the stores reached a new high, with 330,000 Macs sold in the stores during the quarter, a 53% increase from last year. Overall, the company reported revenues of $5.41 billion, with a profit of $818 million. But analysts were universally surprised that just 270,000 iPhones were sold at Apple and AT&T stores during the first weekend before the quarter ended. Some analysts had speculated that 700,000 iPhones were sold during the quarter. During a conference call, CFO Peter Oppenheimer said Apple will open 12 more stores in the current quarter, ending the fiscal year with 197. read more…
Apple is sending localized e-mail to registered product users that promote their local Apple store, including the iPhone, back-to-school deals, and the One to One service. It’s one of the few promotions or advertising that Apple does for the retail stores. This e-mail has direct links for personal shopping assistance, signing up for workshops, checking iPhone availability and local store event calendars.
Thanks to Terry and Michael for the photos of the Orland Square (Ill.) retail store grand opening last Saturday. The store features the now-standard stainless steel interior and wall-mounted display counters.
Apparently trying to beat the holiday selling season, even more Apple stores are closing for floor plan changes and renovations. Both the Jordan Creek (Iowa) and Danbury Fair Mall (Conn.) stores are closed from July 23rd to 27th for a floor plan changes. The Valley Fair (N. Calif.) store has morphed into a mini-store while extensive renovations are made behind the plywood. Thanks to Mike for photos that show the barricaded storefront and the small-store space, and the sign explains, “Full featured. Not full-size.”
Apple’s store-within-a-store project has blossomed in italy, with the first “Apple Shop” opening inside the Mondadori Multicenter in central Milan. Photos on the the setteB.IT Web site show the Shop’s installation, and the finished sales area. The exterior of the department store has black-and-white signage, and the 960 square-foot Shop looks exactly like an expanded Best Buy installation: a black-painted wall with an LCD screen flanked by two back-lit logos, and wood display tables. But the layout includes a Genius Bar-like area with black stools, and a laid-down wood floor. According to setteB.IT, the Shop is one of six or seven that will be installed in various Italian stores this year, including MediaWorld in Rome. The Shop project now includes 13 retailers located in Italy, Germany, France, the UK and Amsterdam.
Steve Jobs’ thank-you gift of an iPhone for all Apple employees is in-progress, with retail employees now receiving their devices. The iPhone gift not only demonstrates Steve’s appreciation for years of hard work, but it will also put iPhones in the hands of enthusiastic employees who will promote the device to curious onlookers.
The relocation of the Mac Resource (Huntsville, Ala.) reseller store has created a great opportunity for a collector or just plain Apple store nut to buy an original fruit-colored neon Apple logo sign. The bidding on eBay started at $2,500, and the buyer is expected to pay for crating and shipping the five-foot tall sign, or arranging for a direct pick-up. Mac Resource will open a new 16,000 square-foot store in mid-August. Check the latest bidding war here (Sign later sold for $5,000).
It may seem an unlikely place to sell Apple products, but the Foxwoods Resort Casino (Conn.) is betting that the new MGM Grand hotel and resort opening there next year will be the perfect location for an authorized Apple reseller. The resort bills itself as the “world’s largest casino,” operated by the Mashantucket Pequot Tribal Nation in upstate Connecticut. The resort announced today that they’ll soon open an Apple product kiosk in the retail area of the existing resort/casino. Then, when the $700 million, MGM-branded expansion is finished next Spring, it will include a full-size Apple reseller store, providing product sales, service and repairs.
Now, over two weeks after the iPhone was introduced, customer demand for the device and Apple’s supply chain has synchronized, so that just 16 stores are listed as out-of-stock. Early iPhone sales were so heavy that availability plummeted to just two stores on July 5th, but it has slowly been rising since then. There’s no discernible pattern of ups-and-downs that might indicate when iPhone deliveries are made to the stores. Geographically, there have been several states nearly or completely depleted of iPhone stocks over the past 18 days, but never in any pattern. The Domain (Austin, Tex.) has been particularly hard hit, having no iPhones for at least 14 days since the iPhone was introduced. Several other individual stores have been chronically out-of-stock, including Pioneer Place (Ore.), Flatiron Crossing (Colo.), Derby Street Shoppes (Mass.) and Aspen Grove (Colo.). read more…
The location of the future Lakeside Shopping Centre (UK) Apple store has been identified as the 5,000 square-feet that retailer Woolworths just relinquished after a downsizing. Apple will officially occupy space #245 on the second level, the left portion of the former Woolworth space, and adjacent to Carphone Warehouse. The trademark black construction barricade has just gone up, and the store could be ready by the holiday shopping season.