I really hope it bounces back, or at least stays at the level it's currently at. I'd hate to see them have to start closing stores, when they were doing so well.

- James, Resveratrol Consultant

To continue the previous pace of expansion would be silly given the current climate, but that does not signal that they've all of a sudden decided that expansion is a bad thing. I would say this constitutes a postponement, not a reversal, of strategy. A net loss of 1600 retail employees does not translate into a "slash." They probably regularly loose close to that many employees between the holiday and 2nd fiscal quarters through attrition alone. So of course, if the pace of openings has slowed, then those employees would not be replaced by new employees at new stores, hence the perception of a slashing of the ranks.

And who is this anonymous “retail management expert” anyway? Is nontekkie a nom de plume for one of the pundits who sounded the death knell for Apple's retail efforts before they even got off the ground several years ago?

Remember, the primary focus of Apple’s retail stores is the presentation of the Macintosh in a favorable environment. Similarly, Best Buy adheres to Apple’s in-store boutique concept for the same reason. Apple has been extremely careful about who they allow to sell what products, so the fact that you can purchase iPods and iPhones at Wal-Mart, AT&T, or Best Buy does not mean that Apple has forfeited its sales responsibilities. It means that certain products (iPods/iPhones) lend themselves more favorably to mass marketing, while others (Macs) do not.

The high of 15,900 was recorded in Nov 2008 and occurred during the ramp-up to Christmas as recorded in their SEC 10-K filed on November 5, 2008.

The reduction in hours occurred post-Christmas, meaning holiday staff, as usual, did not continue past the holidays. Also in the same 10-Q filing, Apple increased R&D headcount in the current year to support expanded R&D activities. (thanks to MDN for the heads-up).

Sounds like this whole retail staff cut-backs story is a bit of a media beat-up if you ask me.

-Mart

http://mediamemo.allthingsd.com/20090424/did-apple-just-fire-1600-retail-workers-nope

-Mart

ex ped: On the other hand, IFOAppleStore reported after Christmas that Apple had reduced the number of paid hours for its retail employees in U.S. stores. "Multiple sources say the cut-back will eliminate all hours for part-time employees, leaving only full-time staffers to handle sales and service at the stores some time in January. The part-time staff are not being laid off, sources say, and will remain on the payroll for recall if visitor traffic requires additional staffing."

I'm not sure what comfort it is to a part-time employees that they haven't been laid off if they don't have any work.

Here's the link: http://www.ifoapplestore.com/db/2008/12/28/apple-cuts-back-hours-part-timers-hit/

March 2008 = ~12,000 FTEs

March 2009 = ~14,000 FTEs

Both figures were preceded by the word "approximately", so they are clearly + or – 500 FTEs. Around 17% more FTEs this year than last, HOWEVER…, you have to factor in the number of stores open.

March 2008 = 205 stores

March 2009 = 251 stores

So, number of stores increased by 22%, and FTEs increased roughly 17%, but given the vagueness, the range would be from, 8% to 26%. In other words, the increase is in the margin of error.

It looks to me like a cut of 10% in total hours. Did Apple extend Xmas shopping hours? I think they did. One extra hour a day, is almost 10%, isn't it?

I think it probably makes sense to look at the Fall quarter to see how much FTEs grew into Xmas, and then compare the Fall quarter FTEs to the post-Xmas quarter FTEs to get a better measure of the change. Or, better yet, look at FTEs from a year ago, and then extrapolate for the additional stores.

Best Buy sells a limited lineup of Mac computers. Wal Mart and AT&T sell only iPhones. There's much more Apple-branded product, and software and accessories, available in an Apple store and through the Apple online store.

Apple augments sales through Best Buy, etc. That's far different from the so-called expert's portrayal.

162,000 PER STORE

"With an average of 251 stores open during the quarter, average revenue per store was $5.9 million compared to $7.1 million in the year-ago quarter.

Retail segment margin was $308 million compared to $334 million in the year-ago quarter. We believe that the year-over-year decline in average store sales and segment margin is a reflection of the continued weakness in the spending environment, coupled with third party channel expansions relative to the year-ago quarter.

We hosted 39.1 million visitors in our stores during the quarter compared to 33.7 million visitors in the year-ago quarter, an increase of 16%."http://seekingalpha.com/article/132506-apple-inc-f2q09-qtr-end-03-28-09-earnings-call-transcript?page=-1

155,000,000 PER STORE THIS YEAR.

SO, it makes sense, Apple is now opening stores too close to ones already opened.

i suggest actually reading the sec filling and not just write

the same stuff all the others do. and by the way apple actually added full time staff in the quarter. (read the sec filling)

ex ped: May I suggest you read what I wrote. "According to its latest SEC 10-Q filing, the company has slashed the ranks of its retail employees — from the equivalent of 15,600 full-time workers at the end of its December quarter to 14,000 in March, a net loss of 1,600 jobs." (Emphasis added.)