Apple is Taking a Shark Sized Bite Out of US Retail Sales [Report]

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"The flagship Apple Retail Store on 5th avenue in New York City." - by Mark Sebastian - http://bit.ly/oueRt4

It’s no secret that Apple retail stores have been a phenomenal success. In terms of sales growth, Apple is the fastest-growing retailer in the US.

Apple store sales have seen a staggering 80% increase since last year, and sales show no sign of slowing anytime soon.

The Mac, iPhone, iPod, iPod touch, and Apple’s other hardware are flying off the shelves at alarming rates. A report from USA Today describes Apple’s retail success as absolutely “mind-boggling.” Berman, author of the quarterly DeeBee Index for US retailers, says, “People don’t realize how much money has been diverted to Apple.”

A huge factor in Apple’s retail success is due to the iPhone. Apple’s smartphone sales saw a 113% increase from last year. iPod sales even fell 17% as customers shifted to make new iPhone purchases. The iPhone actually accounts for 40% of all Apple sales, which could either be seen as a positive or negative, depending on how well Apple maintains the lead in the mobile market by introducing new iPhone models.

“Sales at Apples bricks-and-mortar stores are helping fuel its U.S. performance. Sales at its retail outlets soared 90% in the quarter to $3.2 billion. The lion’s share of those sales came in the U.S.”

With more than 200 physical store locations worldwide, Apple has a very significant presence in not only the domestic, but global market.

In the US alone, total retail sales (including auto parts dealers, internet companies and electronic retailers) for the first business quarter grew by $23.2 billion, while Apple’s own growth saw an astounding $24.67 billion in sales.

Apple’s former head of retail, Ron Johnson, recently left the company for a job as CEO of JC Penny. Johnson’s expertise in retail is one of the main reasons Apple stores are so successful today, and it will be interesting to see how the future pans out for Apple retail in Johnson’s absence.

One thing’s for sure: Apple is making bank!