All may be solid in Apple earnings land, but it appears that retail employees of Apple's ultra-cool Apple Stores were downsized. This makes sense given that Apple Store chains have not made nearly as much money as in 2008.
According to CNET, about 1,600 Apple Store chain jobs have "been shed", according to a recent SEC filing, when compared with the 15,600 full-time equivalent retail jobs listed in Apple's fiscal first-quarter report. This more than likely means that Apple is cutting back on hiring for retail, but it could also mean it has let some full- and part-time employees go.
As Apple Watch blogger Joe Wilcox pointed out in his recent post on Apple earnings, Apple's retail unit for the fiscal second quarter was down 4 percent as compared with 2008, as well pointing out that "Mac average selling prices were down, as were shipments on a quarter-to-quarter basis."
Here is some more detail on Apple's retail numbers from the March 28 SEC filing from Apple:
"The Retail segment reported operating income of $308 million during the second quarter of 2009 compared to operating income of $334 million during the second quarter of 2008, and reported operating income of $661 million during the first six months of 2009 compared to $739 million during the first six months of 2008. The decline in operating income during the second quarter of 2009 and first six months of 2009 was attributable primarily to lower average revenue per store."
The SEC filing goes on to say that closing retail stores would have a negative affect on the company as "such costs could adversely affect the Company's financial condition and operating results." As the CNET post above reveals, only one new Apple store has been opened this year since January.
Should we be expecting more retail job woes for existing Apple store employees? Or is this downsize only a temporary setback?