Apple To Open 25 Stores In 2001, Break Even In 2nd Quarter, Profit In 2002

by , 12:35 PM EDT, May 15th, 2001

Apple officially launched its new chain of retail stores today with a new store in McLean, Virginia and another store in Glendale, California. The company also announced that the retail operations would break even in their 2nd full quarter of operations, and more importantly, turn a profit in 2002. "We expect the retail business to break even during the holiday quarter ending December 31. We expect a slight profit for fiscal '02," Chief Financial Officer Fred Anderson said to reporters at the opening event. The company has also issued a press release which says it will open 25 stores during 2001 and outlines the focus of the stores. According to Apple:

Apple® today announced that it will open 25 retail stores across the U.S. in 2001, with the first two stores opening this Saturday, May 19, at Tysons Corner in McLean, Virginia, and the Glendale Galleria in Glendale, California.

"The Apple stores offer an amazing new way to buy a computer," said Steve Jobs, Apple's CEO. "Rather than just hear about megahertz and megabytes, customers can now learn and experience the things they can actually do with a computer, like make movies, burn custom music CDs, and publish their digital photos on a personal Web site."

Knowledgeable salespeople will be able to demonstrate Macs® running innovative applications like iTunes and iMovie(TM), as well as Mac® OS X, Apple's revolutionary new operating system. All of the Macs are connected to the Internet, and several are connected to digital lifestyle products that complement the Mac experience, such as digital cameras, digital camcorders, MP3 players, and handheld organizers.

The Apple stores will carry over 300 third-party software titles for professionals and consumers, including some of the best educational titles for kids. Many of the computers in the store will be running popular third-party applications such as Microsoft Office and Adobe Photoshop.

The Apple store is organized into sections to make it easy for both first time and computer savvy customers:

Apple's retail stores will carry inventory for every Apple and third-party product displayed to ensure immediate fulfillment.

Apple's stock was trading higher at press time at 23.59, up 0.30 (+1.29%).

The Mac Observer Spin:

The fact that Apple is anticipating its retail operations to break even in only the 2nd *full* quarter of operations, which is actually the 3rd quarter of operations, is amazing. Retail outlets are expensive to set up, expensive to run, and a big pain in the rear end. Gateway, for instance, has opened hundreds of retail locations and been forced to shut down some 37 of them in recent months because they weren't profiting. Apple, on the other hand, is obviously making sure that each and every one of their stores be financially profitable in and of itself. It's an interesting approach and the Street is sure to take notice. Apple never ceases to amaze us.