New Apple Store

  • Posted: 14 August 2011 12:29 PM

    I was lucky enough to finally get an Apple store in my hometown on Saturday. The big news here is that Apple’s new store is right in the backyard of RIM and not in a typical large sized market. There are plenty of Apple stores 1 hour away in Toronto - why did Waterloo get an Apple store? Is it really demographics, or is it making a statement?

    YouTube of opening


    WSJ Story

    There seems to be a real surge in store openings lately.

    While we often disagree on what Apple should do with its cash, I think most of us agree on the top two expenditures:

    1. Increase manufacturing capacity
    2. Open more Apple retail stores around the world


    Has anyone seen or put together a graph of the pace of store openings? It seems to be increasing and we may be getting our #2 wish, but I haven’t seen the numbers to actually show the pace of openings to be greater than before. Is it really the case?

    Hong Kong store

    [ Edited: 14 August 2011 01:12 PM by cranium ]      
  • Posted: 14 August 2011 02:07 PM #1

    cranium - 14 August 2011 03:29 PM

    I was lucky enough to finally get an Apple store in my hometown on Saturday. The big news here is that Apple’s new store is right in the backyard of RIM and not in a typical large sized market. There are plenty of Apple stores 1 hour away in Toronto - why did Waterloo get an Apple store? Is it really demographics, or is it making a statement?

    There’s a need to bring Apple products to the residents of the US suburbs to the north. Consider it a form of foreign exchange. Would you please send down more of that maple syrup to the States?  :wink:

         
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    Posted: 14 August 2011 02:07 PM #2

    I think the pace is slower.  However, the new stores are bigger.  Many older stores are being remodeled.  And then there is Foxconn plan (Hon Hai) for stores in China.

    Apple’s strategy in Waterloo ?  Fundamentally, that’s where some customers are.  Apple’s strategy vs Rimm in Waterloo ?  same thing.

         
  • Posted: 14 August 2011 02:16 PM #3

    cranium - 14 August 2011 03:29 PM

    There are plenty of Apple stores 1 hour away in Toronto - why did Waterloo get an Apple store? Is it really demographics, or is it making a statement?

    Looking at the demographics of Waterloo, there’s an important high tech sector of the local economy and proximity to colleges and universities. I’d say an Apple retail store is a good fit for the location. With college students included in the count, the population is over 125,000.

    My local Apple store opened a few weeks ago and fits a similar pattern. It’s a city of about 175,000 residents and near college and university campuses as well as convenient freeway access within a few miles to serve the communities to the north.

         
  • Posted: 14 August 2011 02:18 PM #4

    Tetrachloride - 14 August 2011 05:07 PM

    I think the pace is slower.  However, the new stores are bigger.  Many older stores are being remodeled.  And then there is Foxconn plan (Hon Hai) for stores in China.

    Actually, the pace of store openings has quickened. The pace had slowed during the depths of the Great Recession but Apple was busy securing long-term lease contracts at very attractive rates. The new store openings are evidence of the hard work performed over the past couple of years.

         
  • Posted: 14 August 2011 03:11 PM #5

    Demographics is key. My home town (Exeter, UK) has Apple-ish demographics and an Apple Store, despite being half the population of nearby Plymouth, which Apple explicitly left for a local reseller to service. Surprisingly, customers of the Plymouth store usually think it’s an Apple managed store.

         
  • Posted: 14 August 2011 03:12 PM #6

    DawnTreader - 14 August 2011 05:18 PM

    Apple was busy securing long-term lease contracts at very attractive rates.

    Another great use of Apple’s cash hoard. It’s a buyers market and Apple was one of the few buyers who had the capital to take advantage of it.

         
  • Posted: 14 August 2011 04:05 PM #7

    FalKirk - 14 August 2011 06:12 PM
    DawnTreader - 14 August 2011 05:18 PM

    Apple was busy securing long-term lease contracts at very attractive rates.

    Another great use of Apple’s cash hoard. It’s a buyers market and Apple was one of the few buyers who had the capital to take advantage of it.

    Exactly. When all of the savings are combined over the long lease periods, the circumstantial discounts could run into the ten figures. What isn’t understood about Apple’s cash is that the funds are accumulating not only because of rising revenue but also due to extraordinary cost management. In the June quarter operating expenses were below 9% of revenue.

    Many of the leases acquired over the past two years are on terms unimaginable 10 years ago and most likely will not be available again on those terms for at least a generation.

         
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    Posted: 16 August 2011 12:45 AM #8

    cranium - 14 August 2011 03:29 PM

    I was lucky enough to finally get an Apple store in my hometown on Saturday. The big news here is that Apple’s new store is right in the backyard of RIM and not in a typical large sized market. There are plenty of Apple stores 1 hour away in Toronto - why did Waterloo get an Apple store? Is it really demographics, or is it making a statement?

    Waterloo is in the centre of southern Ontario.  It makes sense to open one there. Think of all the people within 30-45 mins of Waterloo. It serves more than just the people of Waterloo.  Who wants to drive the 401 in traffic to Toronto?

    Being close to Rim is just a side benefit?

         
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    Posted: 16 August 2011 03:27 PM #9

    I live 3.5 miles from an Apple Store, but a new one is opening this Saturday that’s only 2.7 miles away. Free t-shirt to the first 1,000 people who show up for the 10 am opening. I’ve never been to a grand opening, so I think I’ll go see what all the fuss is about. :-D

         
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    Posted: 16 August 2011 09:28 PM #10

    Can we get one in the Maritimes? Please? Halifax or Fredericton?

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  • Posted: 17 August 2011 11:55 AM #11

    DawnTreader - 14 August 2011 05:18 PM
    Tetrachloride - 14 August 2011 05:07 PM

    I think the pace is slower.  However, the new stores are bigger.  Many older stores are being remodeled.  And then there is Foxconn plan (Hon Hai) for stores in China.

    Actually, the pace of store openings has quickened. The pace had slowed during the depths of the Great Recession but Apple was busy securing long-term lease contracts at very attractive rates. The new store openings are evidence of the hard work performed over the past couple of years.

    As good as Ron Johnson was, he wasn’t building retail out fast enough and may be a clue to his departure.

         
  • Posted: 17 August 2011 12:13 PM #12

    Here’s a rendition of a new Apple store planned for Santa Monica (Third Street Promenade).  All glass ceiling—very nice. 

         
  • Posted: 08 November 2011 12:43 PM #13

    DawnTreader - 14 August 2011 07:05 PM
    FalKirk - 14 August 2011 06:12 PM
    DawnTreader - 14 August 2011 05:18 PM

    Apple was busy securing long-term lease contracts at very attractive rates.

    Another great use of Apple’s cash hoard. It’s a buyers market and Apple was one of the few buyers who had the capital to take advantage of it.

    Exactly. When all of the savings are combined over the long lease periods, the circumstantial discounts could run into the ten figures. What isn’t understood about Apple’s cash is that the funds are accumulating not only because of rising revenue but also due to extraordinary cost management. In the June quarter operating expenses were below 9% of revenue.

    Many of the leases acquired over the past two years are on terms unimaginable 10 years ago and most likely will not be available again on those terms for at least a generation.

    I remember long ago, when Compaq was the darling of WS because they were the only computer (PC or Mac) that had OpEx under 20%.  Manufacturing costs aren’t the only reason prices on computers have come down.

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