Apple talks China retail plan, cash hoard with investors
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pApple’s retail plan for China, its massive stockpile of cash, and the environment were all topics of discussion during the company’s annual shareholder meeting on Thursday. Though it was a fairly average shareholder meeting, these tidbits helped reassure investors that China’s plan for Asia is as serious as the company says and that Apple’s plan for its money is to keep investing in talent./p
pOne of the biggest tidbits of news out of the meeting was that Apple plans to open “up to” 25 retail stores in China in the near future. The company’s first store was a href=”http://arstechnica.com/apple/news/2008/03/apple-moves-first-china-store-down-the-road-opens-in-summer.ars”opened in Beijing in 2008/a, not long before the 2008 Olympic Games took place there. Apple has always said that it has big plans for the Chinese market, so the news isn’t so much a surprise as it is a commitment to expanding Apple’s presence in a huge market. According to a href=”http://www.cnbc.com/id/15840232/play/1/video/1424724283/”CNBC/a, the time frame for these stores to open is within the next 24 months./p
pOn top of the China news, Steve Jobs defended Apple’s $40 billion cash hoard by saying that it gives the company “tremendous security and flexibility,” according to the a href=”http://finance.yahoo.com/news/Apple-CEO-Jobs-favors-apf-120261537.html?x=0amp;.v=6″Associated Press/a. By flexibility, he means it lets Apple a href=”http://arstechnica.com/apple/news/2010/01/apple-looking-to-spend-some-of-its-multi-billion-bankroll.ars”strategically buy companies/a like Lala and Quattro in order to acquire talent and expand its business operations. “Who knows what’s around the next corner?” Jobs reportedly said. /p
pApple’s board also discussednbsp;a recent sustainability proposalnbsp;with shareholders. Jobs told investors that the company had taken numerous steps with suppliers to use nontoxic materials and reduce waste, though environmentalists still wanted more out of the company. Extra measures might have included a detailed report out of Apple or even a sustainability committee, but those proposals were voted down by shareholders./p
pA a href=”http://news.cnet.com/8301-31021_3-10459872-260.html”few jabs/a at Apple board member and environmental frontman Apple Gore took place, as well as numerous a href=”http://brainstormtech.blogs.fortune.cnn.com/2010/02/25/inside-apples-shareholders-meeting/”observations/a about the health and appearance of Steve Jobs, but otherwise it was largely a run-of-the-mill meeting. In the past, Jobs has a href=”http://arstechnica.com/apple/news/2008/03/steve-jobs-names-possible-successors-talks-cash-reserve.ars”speculated about possible successors/a (COO Tim Cook and CFO Peter Oppenheimer, of course), but it seems this time around that no one is wondering whether Jobs is here to stay#8212;at least for a while longer./p
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Palo Alto will be prototype for revised Apple Store design
Apple is planning to build a new Palo Alto store to serve as a “prototype” for future Apple Stores, featuring a completely transparent front and an indoor atrium “feel.” The revised, more open design will serve as a “commons for [Apple's] community to gather,” according to documents filed with the City of Palo Alto’s Architectural Review Board.
Though Apple is not named in the filing, uncovered by Silicon Valley Mercury News, the architect for the project is Bohlin Cywinski Jackson, who also designed the 5th Avenue Apple Store in New York. That store is well known for its large glass cube entryway for the underground retail area, open 24/7. Palo Alto planning manager Amy French told the Mercury News that it is her understanding that the location will be a new Apple Store.
“Apple is pretty secretive about that kind of stuff,” ARB chair Alexander Lew told the Mercury News. “But at the same time, when you look at it, the design is pretty unique—I think a lot of people have kind of guessed [that it's an Apple Store],” he said.
The filing notes that the project will replace the façade of the current unoccupied retail structure at 340 University Avenue with a glass front that will make the street “part of the store’s interior” so that “the energy of the store is shared directly with the street and the larger community.”
In addition to the open glass façade in front, the roof will be modified to include large, open skylights. The natural light coming in will help three large trees, planted near the rear of the store, to grow inside. These features, along with materials choices and other energy efficiency design cues, will qualify the remodeled building for LEED certification.
The renovated location will occupy 10,700 square feet. The existing Palo Alto Apple Store, located just a block away, is about 6,500 square feet. The added space will include plenty of room to offer training for businesses and individual consumers.
The ARB recommended that the city approve Apple’s proposed renovations in a unanimous vote.
Reports: Apple retail down, Apple online up for Black Friday
Black Friday has come and gone and, while it’s still early, numbers and speculation regarding the consumer-fest have begun to trickle in from analysts. According to comScore, hat tip to Silicon Valley Insider, Apple enjoyed 39 percent growth in sales this year compared to last. As a whole, comScore says that e-commerece was up 11 percent from last year, making Apple’s mark over three times greater than the average e-com reseller—rather impressive.
Apple offered deals throughout its online store the day after American Thanksgiving in the company’s usual fashion, which may explain some of the good news. While everything on the Internet was roses and ponies, real world brick and mortar sales were down according to Gene Munster of Piper Jaffrey (again hat tip Silicon Valley Insider). Munster terms the performance “down slightly” from last year, but also calls it a 36 percent decrease. Apple, like many other retailers, had their retail stores open extended hours during the post-holiday shopping spree, hoping to pull in all the business it could during a slow economic period.
Apple reveals telling retail statistics at new store preview
If you’re Apple, you don’t just open a brand new store in Manhattan. You hold a press event showing off the facility and brag about how awesome your retail strategy is first. The store—which, according to Fortune, is located on the site of a former Victoria’s Secret—is impressive. It features an enourmous glass facade and is cube-shaped with the exception of a rounded roof. It is the fourth such store in New York City, and it opens its doors to the general public on Saturday.
Not to be overshadowed by the impressive building, Apple’s SVP of retail Ron Johnson shared some rather impressive numbers with the members of the press who were on hand. To start, Apple has done $6.6 billion in retail store sales this year and has seen 170 million visitors worldwide. If that wasn’t enough, Apple also earns $26 million in sales per store and $4,300 per square foot of retail space.
Apple also shared that it has received 100,000 applications for employment submitted at its retail stores worldwide, and that 10,000 people have applied to work in the newest store. 9,800 of those were rejected, making us glad we didn’t have to sort through that pile ourselves. Gizmodo and Fortune have even more information about the event, so make sure to check out their coverage for the nitty-gritty details.
Apple Store tries "reserve and pick up" for holiday shoppers
If you’re planning on buying some iPods or stock configurations of any Mac as a gift this holiday season, Apple has added an additional buying option aimed at making life easier. In addition to ordering online and having items shipped to you, you can now reserve a selection of items online to be picked up at a convenient retail store in mid-to-late December.
First you must choose a state and store—it appears the service is only available to US customers at this time—then you can choose from a selection of iPods and computers. In addition to the full array of iPods, stock configurations of Apple’s full line of notebooks and desktops are available to reserve. Choosing to reserve an iPhone merely gives the user a message about getting an iPhone Gift Card. Oddly, there are no options to reserve a matching display for a Mac Pro, or even for gift-friendly items like mice, keyboards, Time Capsules, or similar accessories.
Microsoft is supposedly stealing Apple retail staff
Microsoft is reportedly trying to hire away Apple’s retail employees by bribing them with… wait for it, better wages. “People that have spoken to The Loop on condition of anonymity confirm that Microsoft has contacted a number of Apple’s retail store managers to work in their stores. In addition to ’significant raises,’ the managers have also been offered moving expenses in some cases.” It doesn’t end there: once the ex-Apple managers have jumped ship, they are asked to contact their top sales employees at their old workplaces and offer them similar positions at Microsoft’s retail stores, also with higher pay.
Microsoft is supposedly stealing Apple retail staff
Microsoft is reportedly trying to hire away Apple’s retail employees by bribing them with… wait for it, better wages. “People that have spoken to The Loop on condition of anonymity confirm that Microsoft has contacted a number of Apple’s retail store managers to work in their stores. In addition to ’significant raises,’ the managers have also been offered moving expenses in some cases.” It doesn’t end there: once the ex-Apple managers have jumped ship, they are asked to contact their top sales employees at their old workplaces and offer them similar positions at Microsoft’s retail stores, also with higher pay.
5th Ave Apple Store still rockin’ through the recession
While retail stores nearby are reporting that sales are down as much as 20 percent, one 5th Avenue retail location in New York is still selling gear like gangbusters. That store is Apple’s underground, open 24/7 5th Avenue store in Manhattan. The store is pulling in at least $350 million a year according to recent estimate by New York real estate broker, though we have heard it might be as high as $440 million.
Apple doesn’t release sales numbers for individual stores, but its retail operations have been integral to its continued success throughout the recent economic downturn. Though the company is starting to see a slowdown in sales of iPods, sales of higher-priced iPhones have mostly supplanted those sales. At least one analyst believes Apple is on track to move 2.7 million Macs this quarter—not record breaking, but up there among Apple’s best quarters. And this is from the company that Microsoft’s ad campaign has tried desperately to cast as “overcharging” for its products.
5th Ave Apple Store still rockin’ through the recession
While retail stores nearby are reporting that sales are down as much as 20 percent, one 5th Avenue retail location in New York is still selling gear like gangbusters. That store is Apple’s underground, open 24/7 5th Avenue store in Manhattan. The store is pulling in at least $350 million a year according to recent estimate by New York real estate broker, though we have heard it might be as high as $440 million.
Apple doesn’t release sales numbers for individual stores, but its retail operations have been integral to its continued success throughout the recent economic downturn. Though the company is starting to see a slowdown in sales of iPods, sales of higher-priced iPhones have mostly supplanted those sales. At least one analyst believes Apple is on track to move 2.7 million Macs this quarter—not record breaking, but up there among Apple’s best quarters. And this is from the company that Microsoft’s ad campaign has tried desperately to cast as “overcharging” for its products.
Microsoft taps former Apple exec to find prime locations
Microsoft has hired George Blankenship, a retail veteran with history at Gap and Apple, to help it identify the best spots for its upcoming retail stores. Blakenship most recently served as vice president of real estate at Apple, charged with identifying locations for its highly visible—and successful—Apple Stores.
Microsoft has confirmed that it has hired Blankenship as an independent consultant, perhaps in an effort to avoid any non-compete agreement he may have with Apple. Though the company has insisted that it isn’t trying to copy Apple’s successful strategy, hiring a former Apple exec to find suitable locations—some right next to Apple Stores, according to Microsoft COO Kevin Turner—suggests otherwise.
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