The Apple Store was plainly one of those game-changers: Pre-pandemic, Apple had over 500 stores in 25 countries. The shops were amongst the top-tier sellers, the fastest ever to reach a billion each year in sales; by 2012, they had twice the sales per square foot of any other retailer. In 2017, the shops were creating $5,546 per square foot in sales, twice the dollar amount their closest rival (Tiffanys) was producing. Apple no longer breaks out the specifics of its stores in its quarterly reports, however estimates of profits throughout all shops has to do with $2.4 billion monthly.
Routine readers understand I am not a big fan of forecasts. Wall Streets track record forecasting markets or economic activity is mediocre to bad; worse yet, we tend to wed forecasts as soon as we make them rather than admit mistake.
They come from commentary in (the pre-Bloomberg) BusinessWeek, released 20 years ago today (May 21, 2001). It was not just BW, they were just one of numerous cynics discussing the inevitable failure of Apples push into retail.
It is an excellent suggestion of the kind of errors we must avoid making: Operating beyond our own competence; stopping working to completely value present circumstances; and trying (with restricted success) to theorize the present into the future. Last, genuine groundbreaking or revolutionary services and products do come along that change the world.
Sorry, Steve: Heres Why Apple Stores Wont Work.
” Few outsiders think brand-new stores, no matter how well-conceived, will get Apple back on the hot-growth path … Maybe its time Steve Jobs stopped believing quite so differently.”.
A huge part of finance appears to include making projections about what will happen in the future. Many people are really bad at this, for a variety of factors: We have little awareness of our know-how or absence thereof; we do not really comprehend today, not to mention the future; we often forecast what we desire to hold true, rather than what is. And of course, the Dunning Kruger impact describes why we over-estimate our own skillsets about all of the above.
The sooner we discover to remain in our own lanes and work within our capabilities, the much better off we will all be
The Apple Store was plainly one of those game-changers: Pre-pandemic, Apple had over 500 stores in 25 countries. The stores were among the top-tier retailers, the fastest ever to reach a billion per year in sales; by 2012, they had two times the sales per square foot of any other retailer. In 2017, the shops were generating $5,546 per square foot in sales, twice the dollar amount their closest rival (Tiffanys) was creating. Apple no longer breaks out the specifics of its shops in its quarterly reports, however price quotes of revenue throughout all stores is about $2.4 billion per month.