Report: Apple retail stores outsell PC stores 10-to-1

Posted by Dennis Sellers Apple ico Jan 8, 2008 at 5:39pm

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A new report from Bernstein Research says that Apple retail outlets outsell PC-focused stores by as much as ten to one. The report says the typical Apple retail outlet sales an average of 21.4 Macs daily (or 8,000 Macs per store per year), compared to less than two for specialized electronics stores.

“We estimate that the stores, which collectively represent just 2.5 per cent of the Mac’s global distribution points, drove more than one third of its market share gain during the year,” Bernstein Senior Analyst Toni Sacconaghi said.

Bernstein’s report says that the average Apple retail space grew its Mac sales by 26 percent year-over-year. Additionally, the report says that iPod sales in retail outlets have fallen by about half in the last year. The research says that the cost of delivering Apple’s designed customer experience in stores is climbing faster than in-store profit margins.

“We ultimately believe investors should look to maintain a market-weight in Apple, as we see explosive, yet balanced, risk on both sides,” says Sacconaghi.

Bernstein’s report also notes that Apple is one of the most efficient retail store. Apple’s retail space earned an average of approximately US$4,500 per square foot for fiscal 2007.

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Dennis Sellers

Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit.  He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.

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