Apple to Expand Retail Stores


Apple's annual filing with the SEC reveals that Cupertino will continue to invest heavily in its Retail Store outlets, Sacramento Business Journals reports.

Although the Retail Stores reported a relatively small annual loss ($22 million), the Stores have delivered consistent revenue growth, reaching 119% this year. In their first year of operation, Apple Retail lost $48 million. Apple also sees the Stores as a viable means of attracting new customers, as well as 'switchers'. Recently, Apple opened its first international store in Tokyo.

Apple will invest $160 million in capital expenditure in fiscal 2004, with over half going to its retail segment.

Analysis: Originally, in 2001, Fred Anderson said that Retail would break even in its first year and make money after that. 9/11 and the US recession put paid to those forecasts, but the sector is still showing very strong growth, and they'll yet make money for Apple in the medium-to-long term. The same can't be said for Gateway Stores.