Apple Store Caselet Edited Version

8/8/2019 Apple Store Caselet Edited Version

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Learning from the science and philosophy undergirding the retail business of Apple 1

Apple turned conventional retail ideas on their head. When it entered the retail business many

observers were skeptical.

“Sorry Steve, Here ’s why Apple Stores Won ’t Work, ” BusinessWeek wrote with great certainty in 2001.“It’s desperation time in Cupertino, Calif., ” opined TheStreet.com. “I give [Apple] two years before they ’returning out the lights on a very painful and expensive mistake, ” predicted retail consultant DavidGoldstein. 2

But the strategy has worked. The numbers speak.

In 2005 average annual per-store revenue reached $22.5 million, equal to per store numbers of six retailers (Ann Taylor, American Eagle, Abercrombie & Fitch, Pottery Barn, Gap and

Anthropologie) combined, notwithstanding that the referred brands sell different and low-priced products. (Last 8 years results later)

The space productivity of Apple stores, sales per square foot, is very high.

Saks generates sales of $362 per square foot a year. Best Buy stores turn $930 - tops for electronicsretailers - while Tiffany & Co takes in $2,666. Apple is at $4,032. 3

The Apple strategy has learning for all retailers. Apple applied its customer-centric acuity todevelop, engineer, and execute a retail strategy to deliver a distinctly different buying andconsuming experience.

Let us start from the beginning. What motivated Apple to open retail stores?

In 2001 Apple Computer decided to open retail stores that would display their entire line of computer products, software and peripherals. The decision was triggered by the decliningmarket share of Apple in the computer market. Apple was being sold through traditional retailchannels for which Apple was just ‘another’ computer brand. Photos (Figure…. from Best Buy,CompUSA, and The Good Guys communicate the challenge of Apple, its inability to ‘manage’the customer touch-point, and enable customer’s experience the distinctiveness of its products.

Apple wanted more control over the retail selling experience for its products.

Figure …. Apple in third -party retailers

1 Source of information is http://www.ifoapplestore.com unless otherwise noted2 http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm 3 http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm



CompUSa

Best Buy

The Good Guys

To quote Steve Jobs,

"I started to get scared," says Jobs. …Jobs is describing what he saw circa 2000. The company wasincreasingly dependent on mega-retailers - companies that had little incentive, never mind training, toposition Apple ’s products as anything unique. “It was like, ‘We have to do something, or we ’re going to bea victim of the plate tectonics. And we have to think different about this. We have to innovate here. ’”4

In the Form 10-K filed with the SEC in 2001 and 2002 Apple is specific about its strategic visionof the future evolution of the computer business, its challenges and competitive space, and therole of the retail strategy.

Apple ’s vision of the future of personal computing: the concept of the digital hub.

4 http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm

http://www.ifoapplestore.com/stores/best_buy/pages/8_mp3_long.htm

http://www.ifoapplestore.com/stores/best_buy/pages/6_laptop_long.htm

http://www.ifoapplestore.com/stores/best_buy/pages/3_medium.htm

http://www.ifoapplestore.com/stores/compusa/pages/12_endrow.htm

http://www.ifoapplestore.com/stores/compusa/pages/15_aisle1.htm

http://www.ifoapplestore.com/stores/compusa/pages/19_aisle5_close.htm



















































…The Company believes that personal computing has entered a new era in which the personal computerfunctions for both professionals and consumers as the digital hub for advanced new digital devices suchas digital music players, personal digital assistants, cellular phones, digital still and movie cameras, CD andDVD players, and other electronic devices. The attributes of the personal computer, including its ability torun complex applications, possess a high quality user interface, contain large and relatively inexpensive

storage, and easily connect to the Internet in multiple ways and at varying speeds, can individually addvalue to these devices and interconnect them as well … 5

Apple articulates its unique capabilities to deliver a ‘digital hub strategy’ .

Apple is the only company in the personal computer industry that designs and manufactures the entirepersonal computer —from the hardware and operating system to sophisticated applications. Apple ties itall together with its innovative industrial design, intuitive ease−of−use, and built−in networking, graphics,

and multimedia capabilities. Thus, the Company is uniquely positioned to offer digital hub products andsolutions. 6

And the role the retail strategy will play in delivering a unique competitive position in theindustry.

…Before the end of the first quarter of 2003, the Company estimates that over 30% of the U.S. populationwill live withi n 15 miles of one of its stores…

One of the main goals of the retail initiative is to bring new customers to the Company and expand itsinstalled base through sales to both first time computer buyers and those switching from other computingplatforms. By operating its own stores, the Company is able to better control the customer retailexperience. The stores are designed to enhance the presentation and marketing of personal computingproducts…

…the stores provide a forum in which the Company is able to present entire computing solutions to usersin areas such as digital photography, digital video, music, children's software, and home computing …7

In 2001, after Apple had launched the iPod and the retail initiative, Apple had identified keychallenges of the retail business.

The Company ’s retail initiative requires a substantial investment and commitment of resources and issubject to numerous risks and uncertainties. Since May of 2001, the Company has opened 27 retail storesin the United States and anticipates opening more stores in calendar 2002. The Company ’s retail initiativehas required substantial investment in equipment and leasehold improvements, information systems,inventory, and personnel …The Company would incur substantial costs should it choose to terminate this

initiative or close indi vidual stores…

…Potential risks and uncertainties unique to retail operations …lack of consumer acceptance of theCompany ’s retail approach; failure to attract new users to the Macintosh platform; inability to sell

5 Form 10-K 2001 and 2002 accessible at https://www.apple.com/investor/6 Form 10-K 2001 and 2002 accessible at https://www.apple.com/investor/7 Form 10-K 2001 and 2002 accessible at https://www.apple.com/investor/



third−party hardware and software products at adequate margins; failure to manage relationships with

existing retail channel partners; …8

In 2002 the retail stores had already begun to attract non-Mac users.

…Recent survey results …indicate that approximately 40% of customers buying systems in its stores do notcurrently own a Macintosh. 9

Apple entered the business when Gateway was shutting its stores. Apple stores had to beprofitable from the start. They were not viewed as an adjunct distribution and marketingstrategy.

…Steve Jobs specifically, intended the stores from the very first day to turn a solid profit, and not to besimply a marketing or advertising gesture …

“This has never been a marketing venture for Apple, ” Johnson explained. “Steve was very clear from dayone, we didn ’t need stores for marketing. Apple had a great brand, we had great awareness. We had todrive sales and profits for our retail stores. ”

…We’re only going to add stores that deliver incremental volume and incremental profit to our retailstrategy. ”

Each store location had to be profitable. Market saturation was not a goal. The cautiousness of retail expansion as stated by Fred Anderson, the then CFO of Apple.

…Apple requires each prospective store location to be profitable…

“I want to leave you with the thought that we ’re very cautious about this, ” Anderson said. “The goal is not

to saturate the market with stores. ”

Apple established the boundary conditions of their retail business. They didn’t want to be just‘another’ store.

“The world doesn’t need another store,” he (Jobs) said. If someone wants to just pick up a product andbuy it, other companies do that well – “We don’t need that,” he said.

Apple defined the meaning of ‘another’ store in operational t erms; the way a manufacturerdefines a retail account from a wholesale perspective, someone who moves boxes. Ron

Johnson 10 explains.

“The commonly accepted thing retailers did was sold stuff. ” So if you put Gateway ’s vision into words, itwas selling boxes. They used to call it ‘moving metal. ’ They sold computers. If that ’s your vision, you ’re

8 Form 10-K 2001 and 2002 accessible at https://www.apple.com/investor/9 Form 10-K 2001 and 2002 accessible at https://www.apple.com/investor/10 Ron Johnson Sr. VP Retail led the retail design initiative of Apple



going to lead to a certain set of conclusions. It will lead you to low cost and competing on price, locating inremote parking lots. Every three years when they want to buy a computer they'll come visit me. You'lllead to a certain set of decisions.”

The store had to be designed around the customer experience. Apple deviated from the

‘traditional’ interpretation and scope of what constitutes ‘ customer experience .’ The emphasiswas on what customers use computers for, their lifetime experience with the product, and not just the in-store experience, limited to the experience of selection and purchase.

The first objective was to design the stores around the customer experience, but in a completely differentway. “We didn ’t think about their experience in the store, ” Johnson said. “We said; let ’s design this storearound their life experience. ” Most retailers focus on how do you find the right item, how do you select itand how do you get it out of the store. “We said there ’s a bigger idea. Let ’s design it around thecustomer ’s life, not the moment when they ’re in the store. ”

Apple sought to create the lifetime experiences of product ownership in the store.

We said we want our stores to create an ownership experience for the customer. It ’s about the lifetimethat you own your product that provides value to the store …and not the transaction itself. “That ’s whatwe try to create, ” he said. Further, at most retail stores, the purchase ends the relationship with the store.At Apple stores, “We like to think that ’s where it begins, ” Johnson said.

Steve Jobs was fully aware of the risks and challenges of retail diversification. Ron Johnsonremembers his hiring meeting with Steve Jobs.

Steve ’s first three words when he hired me and his first three words when he talked to analysts and pressabout retail. He said, ‘Retailing is hard. ’ Jobs also said that the company was always going to live by the

perspective that retail isn ’t easy, and we ’re going to operate with a little bit of fear, because retailing is ahard business.

Apple’s first challenge was the narrow product lin e.

…Johnson … (narrated)… an early strategy meeting with Steve Jobs about the store. “I sat in a room withSteve, and he put on the table Apple ’s product line. And we had four products, two portables and twodesktop computers. The iPod wasn ’t created yet. ” So immediately … (I)…knew Apple would have just fourproducts to fill the 6,000 square-feet stores. “And that was a challenge. But it ended up being the ultimateopportunity, because we said, because we don ’t have enough products to fill a store that size, let ’s fill itwith the ownership experience. ”

So where does retail stores fit this schema, of limited product variety and intent of offering an‘ownership’ experience by serving a diversity of evolving customer needs over time? Apple hadto define its store offerings.

It started with the right stuff, stocking just the right assortment. Ron Johnson explains.



…if the store only carried the right stuff? ” he asked. “Why confuse customers with a lot of merchandise? ” He recalled proud buyers at Target who were stocking and displaying 31 toaster models. He wonderedwho the expert store was on food preparation, and learned it was Williams Sonoma - which only stockedtwo toaster models. “Retail...It ’s not about broad assortment. It ’s about the right assortment. ”

A decision was made to allow the customers use and experience the products in the Applestore before buying. This was not the traditional way electronic goods were retailed. Apple nowhad an opportunity to enable PC customers experience Apple, something that had not beenpossible hithertofore in third party retailers.

Johnson continued … “And we don’t want the store to be about the product, but about a series of experiences that make it more than a store.”

“…the most important thing we set in our design criteria, ” Johnson said, “is we wanted to create verydistinct experiences for customers…”

This is exemplified by the following statement.

“What if you could test drive everything before you bought? ” Johnson asked …Looking back to (the year)2000, people were living a dial-up world, he recalled. And no one in computer retailing was letting youload up software, connect digital cameras and actually try out the merchandise at their computer stores.

Apple took a decision to offer hands-on training, assistance, and even repairs in the store. Thedominant service engagement model of the industry was phone support.

… he said. “ In a high-tech world, wouldn ’t it be nice to have some high touch? ” …Troubleshooting overthe phone isn ’t easy.

… “So we quickly moved from a buying experience to an ownership experience - Genius Bars, theaters,and face-to-face help and friendly people. But we had a liberty that most retailers don’t have that is (astore) overstuffed with products …”

What if you had next-day repairs? “I can go a couple of days with a wrinkly shirt...especially at Apple, ” Johnson said. “But how do I go eight to 10 days when my computer ’s down. ” Back in 2000, repairssometimes took two weeks, he noted. “That's not enriching someone ’s life. What if we offered repair of computers faster than the dry cleaner could starch your shirt? ”

The store categories were created around products and solutions. The store was positioned as adigital hub.

Johnson …turned to the store features …the world of computing has gone digital, because people want todo “digital things, ” including music, movies and photos. "The world of computing is moving into the digitalhub," he said… it’s not about showing people products, Johnson said, “It’s (about) showing completesolutions. ”



Apple store have product zones …but more importantly, they have solution zones, where products arepaired with software and peripherals for specific purposes. This allows the stores to display and explainhow hardware and software combine to create digital solutions for customers.

Based upon store positioning as a digital hub, and a high-touch solution orientation, the initial

store designs had the following categories.

The stores were originally arranged into six areas by the type of application:

Home - general desktop (iMac) and laptop (iBook) computers and applications. Pro - top-end desktops (G4/G5) and laptops (PowerBooks), LCD displays. Photo - iPhoto, digital cameras. Music - iPods, speakers, computers running iTunes, midi keyboards, etc. Movies - iMovie, iDVD, digital camcorders. Kids - computers running kid-level software. Genius Bar - a counter with stools that is staffed with experts on all things Apple. Buy - the point-of-sale counter. Theater - a screen with an audience area. Studio - a where experts will answer application-oriented, creative questions. “ etc. ” - includes printers, scanners, hard disks, and miscellaneous supplies.

The store layout that emerged is as under, the store space divided into four quarters, each fordifferent products and solutions.

... 25% at the front of the store is devoted to products, 25% to music and photos, 25% for the Genius Barand movies, and 25% at the back of the store is devoted to accessories and other products.

Apple was going into a new business. There was uncertainty about what would work. The storedesign needed to be adaptable and flexible to accommodate emerging needs of customers. Thedesign needed to have a possibility to reconfiguring the store layout; shifting categories aroundand adding products and services.



The design has to be flexible to allow the proper display of current and future products, and fit into thespace at all locations and sites …

… “We want to upgrade our store just like Apple upgrades its operating system. ” A year ago …added theStudio bar to help people who wanted to …do something with their computer - edit a movie, print aphoto book or create music. “If you’re on your own, it ’s really hard, ” he explained. So Apple opened theStudios and staffed them with photographers, musicians and filmmakers.

The subtle changes in the layout, the positioning of categories within the store, over time aresuggestive of how Apple reconfigured store layouts to reflect their strategies and consumerresponses to layouts.

The figure … shows the first store layout. In the first reconfiguration of displays (the red noting)G5s went back into the store, and iPods and entry level computer products came up frontreflective of the emerging importance of iPod and iBooks in the Apple strategy of sales in thestores.



Observers of Apple store described the changes as under. The first change was a relocation of products.

The ‘home’ and ‘pro’ sections are no longer defined by iMacs and iBooks, and G5s and PowerBooksrespectively. Instead, this front section is entirely oriented towards the store ’s most popularproducts, the iMac and Mac mini, along with iPods and the less expensive Apple laptop, the iBook.

The ‘movies ’ and ‘music ’ sections now focus on the heavier hardware, the G5 and PowerBooks, alongwith the Mac mini, some iPods. The ‘music ’ section does keep its audio focus by including a G5 andiMac connected to music keyboards.

The remaining sections appear to be the same: ‘photos ’ continues to display computers and digitalcameras; the Genius Bar remains the same. The ‘etc ’ section has speakers (used to be printers atsome point?), and the ‘kids’ section still has the low, round display table. Software and books are atthe back of the store with the point-of-sale counter (at most stores).

The second changes in late 2005 described below, was a repositioning of categories (see rednoting in Figure…).

The ‘home ’ and ‘pro ’ sections were relocated to the two front-left bays respectively, at most stores theyare labeled just ‘mac ’. The two right-front bays were labeled as ‘music ’ sections. The ‘movies ’ and ‘photos ’ sections were combined into a single ‘iLife’ section. The other sections of the stores remained the same.



Since 2006 the Apple stores follow a somewhat now-standard layout (the left figure …) , with aGenius Bar, Studio Bar and iPod Bar, without a theater, a general ‘mac ’ section (2 bays) and an‘iPod ’ section (2 bays). In 2007 more floor plan changes occurred (the right figure …) . The cashwrap disappeared. The Genius bar was relocated to the rear of the store, and studio bar

became studio nooks. POS activities were switched to a combination of the handheldcomputers and the Genius Bar.

Apple store layout changes have evolved to achieve a more strategic allocation of space for thedifferent categories. The layout of the categories started with a company-centric approach,how the company wanted to position the store based upon their then understanding of customer needs. Apple has continued to tweak the layout based upon two impulses, entry of new products (e.g. iPods) and customer response to categories (e.g. studio bar). The dynamicresponsiveness of Apple manifested in a changing layout is indicative of a more customer-centric approach.



This customer-centricity is reflected in the store planning phase. Apple completely redesignedthe store after the first prototype was ready. Steve Job explains the customer orientation thatwas embedded in the store design.

“One of the best pieces of advice Mickey 11 ever gave us was to go rent a warehouse and build a prototypeof a store, and not, you know, just design it, go build 20 of them, then discover it didn ’t work, ” says Jobs.In other words, design it as you would a product. Apple Store Version 0.0 took shape in a warehouse nearthe Apple campus. “Ron and I had a store all designed, ” says Jobs, when they were stopped by an insight:

11 Mickey Drexler, present CEO of J Crew, erstwhile CEO of Gap, and board member of Apple.



The computer was evolving from a simple productivity tool to a “hub ” for video, photography, music,information, and so forth. The sale, then, was less about the machine than what you could do with it. Butlooking at their store, they winced. The hardware was laid out by product category - in other words, byhow the company was organized internally, not by how a customer might actually want to buy things.“We were like, ‘Oh, God, we ’re screwed! ’” says Jobs.

… “So we redesigned it, ” he says. “And it cost us, I don ’t know, six, nine months. But it was the rightdecision by a million miles. ” When the first store finally opened, in Tysons Corner, Va., only a quarter of itwas about product. The rest was arranged around interests: along the right wall, photos, videos, kids; onthe left, problems. A third area - the Genius Bar in the back - was Johnson ’s brainstorm. 12

Apple store design experience serves as an important lesson of retail business. One, storedesign must have implicit flexibility built into the design to enable changing the layout of theproducts and categories, inexpensively and without requiring changes in fixtures and fittings.Two, building a prototype should precede launch. It is impossible to visualize the store in three-dimensions from engineering drawings. The cost of the prototype is not a waste even for a

small retailer. The prototype becomes the showroom for developing visual merchandisingstrategies and staff training.

…heart of retail design …difficult to get it right first time out… (development occurs)… through learningand prototyping store design …

Before going public build a mock- up…des ign and construct a full-scale mock-up of the store prototype in awarehouse…May have to reengineer the design …why…(because a)…retail store investment is a long termcommitment

… Original prototype store was too big for some markets, so they designed a prototype store that is 50%smaller …

Apple decided to locate stores in high foot-traffic locations.

Apple ’s “break-through ” decision was to locate their stores in the most expensive, highest-trafficlocations. “We wanted people to see our brand, ” and where people didn ’t have to drive six miles to visit,but rather walk six feet. Their real estate selections are places where people gather, such as high-endmalls, hip streets and so-called “lifestyle ” and “destination ” centers...

Steve Jobs explains the reasoning underlying the decision, accessibility and convenience. 13

…if we put our store in a mall or on a street that they ’re walking by, and we reduce that risk from a 20-

minute drive to 20 footsteps, then they ’re more likely to go in because there ’s really no risk. So wedecided to put our stores in high-traffic locations …”

The strategic goal of store locations; enable non-Mac users easily experience the Mac.

12 http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm 13 http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm

http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm






“It was very simple. The Mac faithful will drive to a destination, right? They will drive somewhere special just to do that. But people who own Windows - we want to convert them to Mac. They will not drivesomewhere special. They don't think they want a Mac. They will not take the risk of a 20-minute drive incase they don't like it.

Apple store architectureWhen Apple was conceptualizing its retail stores, the electronic superstores were designed, theaisles, fixtures, lighting, and flooring, based upon the ‘low margin’ nature of the business and anunderlying assumption of ‘commoditization’ of technology. Apple sought to position itself inthis market. Ron Johnson explains the architectural intent of Apple.

(How to make the atmosphere) … inviting, approachable, forward-looking, warm, interactive andintelligent.

How has Apple implemented this? At the overall level Apple stores are uncluttered and focused

on customer experience. (See the three photos of Apple stores taken from Apple website. 14)

Apple store Vancouver

14 Each Apple store has an individual Web page, with an accompanying photo.http://www.ifoapplestore.com/stores/storefront_catalog_2.html



Apple store – stone ridge mall

Apple store – South center

The store is made ‘inviting, approachable, and warm’ by using lighting and colors, the color of the floor, tables, and walls. Ron Johnson explains.

The interiors are very common, he said. “Apple is never about being tricky. It’s about being common.” So

they use natural materials like stone, wood, glass and stainless steel, using a neutral palette, and“incredible” lighting.



The facade of Apple stores is a mix, either bead- blasted, matte stainless steel …or semi-polished Indianalimestone …

The entrances are either wide open or with swing doors.

The storefronts are usually all-glass, with a back- lit Apple logo … In some cases the swinging doors are in

the middle, but in some cases a logo wall is in the middle, and two doors flank it on either side. …

The interior fixture layout, with a clear central aisle, and colors of the fixtures and flooring givea feel of a boutique.

The interior layout and design of the stores…. the dark gray floors …sandstone floor tiles … and blondwood display tables …

.. use light-colored maple wood tables that create islands of merchandise and present a much “warmer”customer experience.

The ‘interactive and intelligent’ objective of the Apple store has been implemented through thefollowing store characteristics.

Large front windows with interactive displays using a cable, wire and slot system. Merchandise is displayed …for hands -on, real-world use. (See photo) 15 A “Studio” bar where customers receive assistance with software, including iLife and other

software. A "Genius Bar" where customers can ask questions and solve tech problems. (See photo) A children's area with low-seating and kid-type software on the computers. (See photo of kids in

front of the Accessories wall) An open Airport wireless network, so visitors can bring in their laptops and download e-mail, do

video chats, etc. A schedule of in-store events and instruction (See photo)

Perhaps the most important of the above features is the “ hands on use .” The computers on display in an

Apple store aren’t some type of artificial display —they’re hooked up to video camcorders, digital

cameras, iPods, music keyboards, etc. so the visitor can actually create something, burn it to a CD/DVD,and get a feel for the hardware and software.

15 All store photos are from http://gallery.me.com/ifoman#100492&bgcolor=black&view=mosaic&sel=0



In-store experience

Let us compare the in-store experience of the Apple store with a mass-market electronicretailer like Best Buy.

Best Buy is positioned as a ‘ retailer of consumer electronics, home office products,entertainment software, appliances an d related services… and serves customer needs with end -to- end…technology solutions with world -class partners.’ 16 A customer in a Best Buy store has

the following perspective of the store, of its scale and diversity. Best Buy is a destinationelectronic super-store for all consumer needs, and is required to carry widest range of categories, brands, and products to meet all consumer needs. The customer will see a diversityof categories and brands. He has to search and find a way to the destination aisle.

16 From the Annual Report 2010 and June 2010 presentation at the AGM http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=IROL-IRhome



The customer in-store journey follows a sequence as under:

Identify location of category / brand Locate category / brand search brand / product compare brands evaluate buy

The customer in an Apple store goes through the same steps except each step is easier in an

Apple store. All categories are visible on entry. They are easier to find and easy to experience by‘test driving.’ The difference is stark. The customer moves into a brightly lit clear line -of-sightspace that has no high fixtures and aisles to be ‘entered’ into to search for products (see photosbelow). The effortless movement into a public open space evokes no uncertainty or psychicstrain on customers.

Metrics to track store performance

Apple tracks the following key metrics to evaluate the performance of the stores.

o The retail sales tracked and reported every four minutes…o …the impact of new product introductions or other announcements o Traffic Visitor traffic is tracked at 15-minute i ntervals… o Conversiono Average weekly volume per storeo The percent of sales of CPUs and iPodso Beyond the box revenues (iPod, 3rd party, AppleCare),o New to mac - % computers buyers new to the Macintosho Employee turn-over



o Customer satisfactiono Operating expense per store per weeko Store build-out costs

So have the stores been successful? The following table shows the performance of last 8 years.In 2010 nearly 233 million customers visited Apple stores and average sales per store was $33.8million. 17

Trackingmeasure

2003 2004 2005 2006 2007 2008 2009 2010

Storevisitorsmillion

13.9 25.2 50.7 81.1 102.4 146.8 170.3 233.3

Averagestorerevenue $million

9.38 15.5 22.5 23.7 23.4 30.2 25.9 33.8

Revenue$m

621 1185 2350 3358 4120 6312 6567 9800

Profitretailsegment$m

(7) 39 159 198 573 1337 1392 2364

17 Data from http://www.ifoapplestore.com and Form 10-K SEC filings from https://www.apple.com/investor/

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010

Store sales

Linear (Store sales )



-50

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010

store visitors

Linear (store visitors )

-2000

0

2000

4000

6000

8000

10000

12000

2003 2004 2005 2006 2007 2008 2009 2010

Profit

Sales

Apple Store Caselet Edited Version

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