April 29, 2024

Apple's offline store business growth slows down, consumers like online shopping

According to foreign media reports, despite the fact that it is still the most popular retail store, Apple's store revenue growth is declining. The Apple Store was once a sacred place for retail sales growth: In the first half of fiscal year 2011, Apple’s store business revenue grew by 90%. In the past two quarters, revenue growth slowed significantly. In the last quarter, despite the opening of 40 new stores, the number of products sold by Apple stores was the same as last year.

In the last quarter, customers delayed the purchase of the iPhone due to the iPhone 4S release, but this can only partially explain the reason for the weak sales of specialty stores: Apple's total revenue increased by 39% despite the increase in store sales.

Apple's overall performance is higher than retail sales. In fact, stores have dragged down the growth of business.

Like other offline retailers, Apple's store revenue growth rate is declining. More and more consumers experience products at Apple Stores and then buy them online.

Industry sources pointed out that Apple should not give up its store business. In terms of service and brand image enhancement, compared with rivals such as Dell, Hewlett-Packard, Acer and RIM, the store has made Apple an invaluable advantage. Other brands of laptops and tablet computers have problems. Users need to scramble to call a service phone. It is not certain that the problem can be solved. After the product has passed the warranty period, the user can only solve the problem by himself. Apple users only need to walk into the nearby Apple Store to get expert help.

In addition, the store has high profitability. The profit margin of the Apple Store business in fiscal year 2011 was 23.4%, a decrease of 1.1 percentage points from the previous fiscal year, but still higher than most other retail stores.

As consumers increasingly use online shopping, Apple's retail business will also meet this trend. Consumers will go to the Apple Store to experience the product and then purchase Apple products online.

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