Apr 30, 2012

Look no further than Apple to explain the retail woes here

Apple is often ignored by retailers and analysts looking to explain the current malaise hitting the electronics retailing sector in Australia.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

Apple is often ignored by retailers and analysts looking to explain the current malaise hitting the electronics retailing sector in Australia. But since the first Apple retail shop opened here in June 2008, Apple has pinched close to $A2 billion in sales and well over $A400 million in profits from the Australian retailing sector.

It has grabbed sales and earnings from selling more of its own products direct to Australians, rather than continue selling through the likes of JB Hi-Fi and Harvey Norman. While the latter still sell Apple products, they and other retailers no longer have the same domination they had before June 2008. Apple has muscled in, expanding to 13 shops here, with six in Sydney, and a 14th is tipped for Adelaide later this year.

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7 thoughts on “Look no further than Apple to explain the retail woes here


    The collapse of retail is global, according to Mike Shedlock even

    German retail is doing it tough. Is Apple the cause of that too?

  2. Malcolm Street

    The lesson I take out of the article is that if you have a sufficiently innovative, useful, well-marketed product that makes its own niche it will sell like hotcakes at high margins.

    How much of the retail slump is because demand in many categories is already satisfied?

  3. michael r james

    Of course the model of showcase/destination stores is nothing new. Most of the top luxury brands in clothes, cosmetics, handbags etc. have been doing the same thing for decades, ie. in addition to selling thru department stores etc.

    Sony have been doing it for a long time too. But it seems Apple has outdone them all. Apparently Apple Stores, at least in the US, are the most profitable retail stores per sq metre of storespace in the US.

    Microsoft have just begun rolling out copycat stores in an attempt to replicate the model. (Ha, Microsoft!)

  4. Gary

    free delivery next day in all major cities when ordering online is also a factor.
    order by 2pm, delivered next day to your door.

    Students and education have a discount. Teachers have their own online apple store.

  5. SBH

    So the fact that Apple products cost the same from a direct Apple retailer or an Apple onseller is a ringing endorsement of the dynamics of the market and competition delivering benefits to consumers then?

  6. Altakoi

    Retailers here face a difficult position because we don’t make
    anything ourselves – so its a question of being a middle man for
    other producers overseas. To make a comparison, one solution
    to internet piracy from abroad is for Australian TV channels to
    actually make content. Then its aired at the same time as it can
    be uploaded, just like in the US, not three months before it is aired.

  7. Spamhater

    The main reason that Apple has muscled in so successfully is what happens when your phone is lost / damaged / stolen. In this case you can only buy a replacement from Apple at their online Apple store!!!
    Happened to my partner just recently and neither of us could believe it – or the price!! ($900.00AUD!!!) No wonder Samsung etc. are outselling them up to 3 to 1 in most world markets.

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