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02-20-2011, 03:07 PM #1
Apple Continues Aggressive, Large-Scale Retail Expansion in China
If you seek evidence of Apple's expansive and aggressive retail growth strategy, look no further than China. Apple is now in the process of constructing its fifth store - and largest to date - on Shanghai’s busiest shopping street. With an estimated completion date set for this summer, Apple's four already-existing stores in China are also Apple's four busiest Apple stores in the world. And the new Shanghai property could quickly become the busiest yet.
According to the Wall Street Journal, Apple's senior vice-president of retail Ron Johnson says his company's plans to open 25 additional stores in China this year may be slightly held back due to Apple's newfound interest in building much bigger retail outlets than ever originally envisioned - chief among them the monstrosity planned for Shanghai. It should be noted, however, that Apple isn't merely interested in aesthetically pleasing grand architecture in its pursuit of gargantuan retail outlets. According to Apple, its largest stores also earn the highest revenue, effectively becoming shopping centers and tourist attractions at the same time.
The look of the new Shanghai store will be remarkably similar to other over-sized Apple stores. The construction process already details a massive glass structure fashioned into a sky-scraping cylinder housing a wonderland of Apple products and other must-see features. Yes, the stores come at a great expense. But as the Wall Street Journal notes, in Apple's last earnings call, Chief Operating Officer Tim Cook said "revenue from Greater China reached $2.6 billion, four times the company’s China revenue a year earlier."
Wall Street Journal
02-20-2011, 03:32 PM #2
Smart move! Go big where you are big!
02-20-2011, 04:24 PM #3
feel like buying Apple stocks, I think they going on a good direction here.
02-20-2011, 04:42 PM #4
$$$ ... I need to pick up some more stocks!!!
02-20-2011, 05:33 PM #5
02-20-2011, 06:04 PM #6
I got AT&T like one month too late. When I travel to California I don't use wifi very much so and the 2gb sucks! When I asked about the Un limited data they told me I have way more than enuff data and too bad. I can't even watch net flix or update my apps with out checking my data usage all the time. And I left T mobile for this crap! They need to put Un limited data back on before they come out with more tether apps.
02-20-2011, 07:19 PM #7
This really helps support my recent DCF model giving a $430 price target on AAPL last week. (Mr. Job's health being the natural major caveat, as since the latest rumors the stock has slid about 1.5% per day). Nonetheless, 50% YOY revenue growth is not asking too much putting FY 2011 revenue at ~93 Billion. If avg quarterly EPS keep pace at about 5.25 and a PE ratio of 20 holds, then a $420 forward share price is where were headed. That represents ~18% rise in shares...
02-21-2011, 01:48 AM #8
02-21-2011, 01:50 AM #9
I hope they don't go cheap on the components as Chinese made electronics parts have the highest failure rate. Any products made in China won't last.
02-21-2011, 10:39 AM #10
02-21-2011, 08:24 PM #11