Apple’s retail stores achieved new records for sales, profit and visitors during the holiday quarter, helping the company reach overall goals that defied the overall personal computer market. Revenue for the stores was $6.1 billion, up 59 percent compared to the same quarter of 2010, while profit soared to $1.8 billion, up 30.8 percent. Sales of Mac computers at the stores reached a new record of 1.1 million, with about half new to the Mac. Visitor traffic of 110 million in the pre-holiday period established a new record. Overall, Apple reported records in almost every category—revenue, profit and sales of iPhones, iPads and Macs. Only iPod sales declined during the quarter, as customers shifted to the more versatile iPhone. Revenue for the quarter was $46.33 billion, and profit was $13.06 billion. Sales of the iPhone were up 128 percent compared to the same quarter of 2010, and Mac sales were up 26 percent. Sales of iPads increased 111 percent from the year-ago quarter, but sales of iPods declined 21 percent. In a conference call with analysts, CEO Peter Oppenheimer mentioned the new EZ Pay and Personal Pickup services at the stores, and how they’ve streamlined purchases. But he gave no specific figures for how many customers used the services during the quarter. Oppenheimer did not mention any new retail stores that are opening soon, or how many would open during fiscal 2012.
Check the financial charts and graphs for comparison information.
During a question-and-answer session, an analyst acknowledged Apple’s sales focus in China and Brazil, but asked when Apple might “more aggressively” address markets in India and Russia with a retail presence. CEO Tim Cook replied, “We have a ton more energy in the China market today. That doesn’t mean that there is a lack of effort or focus on the others. It just means that it’s less than what we’re investing in China today.”
Cook said that Brazil is second on the company’s list of focused energy. “I think there’s a huge opportunity for us there,” he said. But he quickly added, “I don’t want to signal that that means that Apple Retail would be there, because I don’t envision that occurring in the near term.
As for India, he said revenue was up over 300 percent during the last quarter, “but that’s on a small base.” He said Apple is beginning to see traction in other regions, “but we recognize we have to focus to deeply understand the point that we can really get to a large revenue figure like Greater China currently is.”
Cook’s remarks seemed to squelch speculation about Apple locating stores in India, within the same week that more favorable regulations were passed by the India government. Both Russia and India are already served by carrier and retail partners, he said. Although sales have improved in both countries, Cook said, they are still well below the revenues generated by China.
Oppenheimer said per-store average revenue was $17.1 million during the quarter, up 43 percent year-over-year. On average, each store hosted 22,000 visitor per week during the quarter.
Oppenheimer said Mac sales were up substantially in all geographies, but particularly in Asia, where it was up 58 percent year-over-year. Those results raise the possibility of an increased focus on the region for more retail stores. Japan, in particular, has had a new store open since 2006.
Oppenheimer also said sales of iPhones was strong in all segments. He did not mention the shut-down of sales at Apple’s retail stores in China or how that might have affected overall sales.
Describing the new Easy Pay service, Oppenheimer said it has, “significantly enhanced our ability to handle such high customer traffic levels.” He said the Personal Pickup service allows on-line purchases and then pick up at a retail store within one hour, “making shopping for Apple products that much easier and faster.”
None of the analysts asked about, and neither Oppenheimer or Cook mentioned, the absence of a replacement for former Sr. V-P Retail Ron Johnson, who left for JC Penney last November.
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Good job Apple! As a shareholder I want to thank everyone and their families for all their hard work this last year. You have truly created a great company.
With that being said Apple needs to do the right thing and award its employees (Retail needs to be rewarded), investors and suppliers (fix the treatment of the people at Foxcon). If the do all these thing they will be awarded as one of the greatest companies of all time…