Apple continues investing during bad economy

The recession has been difficult for every segment of the economy, from tech companies to the retailers, but Apple plans to spend its way through the downturn, according to USA Today.

Ron Johnson, Apple's senior vice president of retail, was brought into Apple by Steve Jobs to start and build the company's retail store strategy. And he has done just that, very successfully.

While many companies have been forced to cutback on their investment or close their doors completely, Apple is expanding its retail presence. Not only is the company building new retail stores, it is also renovating existing stores to better fit the messaging of the company.

Johnson told USA Today that Apple plans to remodel 100 locations this year. The changes will give the company more room to display products and offer bigger spaces for customer training.

One of the highlights of the stores that have them are training theaters. Apple Store employees, third-party companies, and other professionals often put on seminars showing users how to get the most out of software and hardware products.

Apple even participates in events like the trendy Tribeca Film Festival, inviting entertainers like Spike Lee and Natalie Portman to give sessions.

In reporting its second quarter financial earnings in April, Apple said it had 252 stores worldwide. Its retail stores sold 438,000 Macs and accounted for $1.47 billion in revenue for the quarter. Visitors to its retail locations topped 39 million in the second quarter.

[ikramerica--2008]

Funny, the Apple Stores I've been to that have been renovated had removed the theater, and just about anywhere comfortable to sit while waiting for your appointment at the genius bar. Basically, in exchange, there is more space for iPhones and iPod touches.

[Synthmeister]

That's why you keep $30 billion in the bank.

[kcotham]

That and the ability to do plenty of R & D, at will.

[myles taylor]

Good for you, Apple. Don't lay off workers and cut costs like some of the other companies out there. Spend away. That's what we need.

For those of you who think I'm being sarcastic, I'm not. The companies that are doing well need to spend money. This will create jobs for people who will spend money. That's how you stop a downward spiral and make it an upward one.

[vtorch]

You make it sound so Romantic and Fuzzy.

Has it ever occurred to you that the reason why Apple is spending is because in recessionary times, things are lot cheaper?

FYI, it's all over the internet amount of people Apple has laid off.

[Vegaman_Dan]

Apple laid off a good chunk of their retail sales force in the last few months.

[kcotham]

I'm glad to see there's one company not panicking and being über-cautious. That sort of behaviour is what causes a slight dip in the economy into the free-fall that hit us over the past 9 months. Investing in their infrastructure helps the economy and puts them in a good position when we come out of this recession. The companies that were in a lay-off frenzie, will be behind the curve and will slow the recovery as a result.

[sythara]

Neither is microsoft

[kcotham]

Who gives a flying fig about Micro$oft. The story had nothing to do with them. Troll.

[vtorch]

People, it's simple economics. Apple is doing what they are doing because the cost of doing it is cheaper.

[Vegaman_Dan]

This is hardly surprising to see. It's commonplace for companies that work with the long term goal of success to invest in themselves and do improvements during economic downturns. Right now is a fantastic time to invest while prices are low. Construction projects are at a standstill so if you want to get something done fast, now is the time to do it.

With a recovery expected within the next year based on past history of these downturns, coming out of it with new stores and an improved condition just as the economy rebounds is ideal. That's why many companies including Apple, Dell, HP, Microsoft, and others are all working hard to time it just right.

[meowser007]

What happened to steve krazet

[baconstang]

I was in Bethesda, MD lately. When I passed the spot where the Apple store had been I asked my local friend 'Wha' happened?'. He said they had to close it because of 'that'.... pointing to the new store that was twice the size, a half block away.

I understand that they mostly cut hours, not not layoffs. The SF store looks as busy as usual.

[sythara]

Really, apple store in SF is busy?