iPad Drove 'Quantum Leap' in Apple Retail Store Traffic as Annual Visits Approach 400 Million

Following yesterday's release of Apple's 10-K annual report, which we shared some numbers from, Asymco analyst Horace Dediu has now taken a closer look at some of the other retail store performance numbers. Dediu notes that Apple reported a total of 395 million visits to the company's retail locations in fiscal 2013, an increase of 23 million visitors from 2012. The analyst also shows that, with the exception of some seasonal spikes, visitors per store per quarter has remained fairly steady at 240,000 since mid-2010, compared to just 160,000 visitors per store per quarter from 2007 to 2010.

dediu_store_traffic
In examining potential factors driving this "quantum leap" in visitors to Apple's retail stores occurring in mid-2010, Dediu determined that the launch of the iPad could be the main reason:

That leaves product. Here we have a clear suspect. The iPad launched exactly at the point in time when the visitor count leaped. In my opinion this is the best explanation.

Let’s remember also the comment from Ron Johnson at the time of the iPad launch. He said that it was as if the stores were designed for a product like the iPad. In other words, the iPad is something that needs to be discovered with a retail experience. You can sense this when you visit the stores and the placement of the iPads within.

As Business Insider points out, Dediu also notes that the average spending per visitor in an Apple retail store has remained steady for the past several years at around $50, up from the $40 spent on average before the product launched:

Next, Dediu explains that the traffic to each store depends in part on the size of the store and the "flow" of people through the store. The store renovations that Apple recently announced, Dediu says, will be geared toward improving these. Dediu also pointed out that the average spending per visitor in the stores is very steady — "around $50 since the iPad launched, $40 prior."

Apple reported during its fourth quarter earnings call this week that its retail stores made $4.5 billion in revenue in Q4 2013, with 30 new stores coming in fiscal 2014. Two-thirds of those new stores will be located outside of the United States, and Apple plans to remodel an additional 20 stores over the course of the year.

Top Rated Comments

DOSNET Avatar
101 months ago
Quantum leap? Didn't go very far then eh?
Score: 6 Votes (Like | Disagree)
Michael73 Avatar
101 months ago
An Indianapolis perspective...

There is only one Apple store in town and it's relatively small. Before the iPhone was introduced it was reasonable to actually walk around the store and in my opinion have a pleasurable shopping experience. Fast forward to 2013 and I'll do just about anything to stay away from the store and the wall-to-wall people in it.

Don't get me wrong, I understand that part of retail profitability to sales-to-square-foot, but I wonder how much more a store could sell if people like me didn't dread going in one because of the mob?

I've said for years, my local store should expand, strip off the genius bar, one-to-one appointments and the daily "classes" they have and move them to a place you don't have to raise your voice over the din and a place more conducive to learning. Heck, in that "other" area, add space for business and education customers. My perspective is that even if the people in this new space aren't surround by all the products of the Apple store, the increased attention and "specialness" they feel from the new space will drive increased long term loyalty and sales.
Score: 4 Votes (Like | Disagree)
Jsameds Avatar
101 months ago
Dammit Ziggy! Tell me something I don't know!
Score: 4 Votes (Like | Disagree)
Chupa Chupa Avatar
101 months ago
Interesting that people still visit Apple's Stores, given the recent failures in presenting new and innovative products.

I blame Tim for that!

I hope that Apple steps it up from here.

:apple::apple:

It would indeed seem that Apple still has products that consumers want enough to visit the store & experience. Apple's "failures" as you put it regarding "innovation" are really only unrealistic expectations on fanboy's end. I don't know of any company run by human beings that is able to push out cutting edge products year after year, nor would it be productive or efficient to do so. I don't sense mainline consumers are restless just yet. Cook has made quite a few management errors, but separate issue.

We saw this week that Apple R&D expenses took quite a boost recently at a hit to margins so it would seem Apple is not resting on its laurels & understands it's situation.
Score: 3 Votes (Like | Disagree)
locust76 Avatar
101 months ago
iPad Drove 'Quantum Leap' in Apple Retail Store Traffic...

But things that happen on a quantum scale are very very tiny!!!
Score: 3 Votes (Like | Disagree)
Krazy Bill Avatar
101 months ago
Add to that another 400 million that know how crowded Apple stores are and never go in.
Score: 1 Votes (Like | Disagree)

Top Stories

Pro Display XDR Yella

Apple Working on External Display With Built-In A13 Chip

Friday July 23, 2021 9:37 am PDT by
Apple is developing an external display that includes an A13 chip with Neural Engine, according to a new rumor from 9to5Mac. The A13 chip with Neural Engine would presumably serve as an eGPU, though details are light at this time. Having a CPU/GPU built into the external display could help Macs deliver high-resolution graphics without using all the resources of the computer's internal chip....
iOS 14 on iPhone feature emergency

Apple Releases iOS and iPadOS 14.7.1 With Fix for Touch ID Apple Watch Bug

Monday July 26, 2021 9:48 am PDT by
Apple today released iOS and iPadOS 14.7.1, minor bug fix updates that come just a week after the release of iOS 14.7, software that introduced new Apple Card features and support for the MagSafe Battery Pack. The iOS and iPadOS 14.7.1 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to...
discount m1 macbook yellow

Deals: Shop Record Low Prices Across Apple's Full MacBook Pro and MacBook Air Lineup (Up to $499 Off)

Friday July 23, 2021 8:23 am PDT by
Apple's MacBook Pro and MacBook Air lineup is seeing all-time low discounts across the board today, including the 2019 16-inch MacBook Pro, 2020 13-inch MacBook Air, and 2020 13-inch MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. 13-Inch M1...
iphone 12 pro gold

Report: iPhone 14 Pro Models to Feature Tough Titanium Alloy Chassis

Monday July 26, 2021 1:12 am PDT by
Next year's "iPhone 14" series is expected to feature high-end models with a new titanium alloy chassis design, claims a new investors report by JP Morgan Chase. According to the report, the use of titanium alloy will be one of the biggest changes to the case design in the 2022 iPhone series, and Foxconn will be the exclusive manufacturer of the titanium frames for the high-end models....
FaceID iMac REREREREMIX

Gurman: Face ID on the Mac Coming Within a 'Couple of Years'

Sunday July 25, 2021 7:09 am PDT by
Apple plans to bring Face ID to the Mac within the next "couple of years," respected Bloomberg journalist Mark Gurman said today in the latest edition of his Power On newsletter. In the newsletter, Gurman says that he believes Apple's ultimate goal is to shift all of its products to Face ID, including the lower-end iPhones such as the iPhone SE and the iPad Air, which feature Touch ID....
airpods 3 gizmochina Feature

AirPods 3 Rumored to Launch Alongside iPhone 13 at Expected September Event

Friday July 23, 2021 12:54 am PDT by
The third-generation AirPods will likely launch at the same event revealing Apple's upcoming iPhone 13 lineup, according to a report from DigiTimes, which makes the claim citing sources familiar with the matter. The report as a whole echoes previous reporting that production of the third-generation AirPods will kickstart in August, meaning a launch shortly after can be easily expected. DigiTi...
imac with accessories

Larger Redesigned High-End iMac Rumored to Launch Next Year

Monday July 26, 2021 3:45 am PDT by
Apple's larger redesigned iMac will arrive sometime in 2022 rather than later this year, according to the leaker known as "Dylandkt." On Twitter, Dylandkt claimed that Apple's "high end iMac" is not expected to release in the fourth quarter of 2021 alongside Apple's "M1X Macs" – a reference to Apple's redesigned MacBook Pro models – because "Apple simply does not want their devices to...
apple bitcoin hack

Is Apple Really Buying Bitcoin?

Monday July 26, 2021 3:07 am PDT by
A large number of websites and posts on social media are stoking rumors that Apple has purchased $2.5 billion worth of bitcoin in the company's first move into cryptocurrency, but is there any validity to the claims? Many people are citing the fact that Apple was looking for a Business Development Manager with experience in alternative payments, including cryptocurrency, earlier this year as ...
apple mac business page

Apple Shares 11 Reasons Why Business Users Should Choose Macs

Monday July 26, 2021 11:35 am PDT by
Apple today updated its Apple at Work website with a new section dedicated to the Mac, which offers up 11 reasons why "Mac means business." On the webpage, Apple highlights the M1 chip as the number one reason why business users should choose a Mac, offering up an M1 overview [PDF] that explains the benefits of the M1 chip. The information isn't new, but it does provide a look at all of...
magsafe battery pack iphone 12 mini

Top Stories: Hands-On With MagSafe Battery Pack, iPhone 13 Always-On Display?

Saturday July 24, 2021 6:00 am PDT by
Apple's new MagSafe Battery Pack is now available, and we went hands-on this week for some early impressions of the new accessory to get more battery life out of Apple's iPhone 12 lineup. Subscribe to the MacRumors YouTube channel for more videos. This week also saw a number of rumors about the upcoming redesigned MacBook Pro models, the iPhone 13 lineup, the next-generation iPad mini, a new...