Apple Inc. (NASDAQ:AAPL) stores have not kept pace with it’s overall business: Needham

Apple Inc.(NASDAQ:AAPL) is busy adding new products to its portfolio, but number of retail stores opened by the company has not kept pace with the rise in its product line-up, according to a report by Needham & Company.

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The number of Apple stores is few and far between, when one compares the number of products and the frequency with which the company launches new products. This is one major reason why Apple stores always see long queues which new products such as an iPad or an iPhone are up for sale.

However that does not mean that the company’s points of sales are few. Both the number of Apple Stores and the number of other outlets where buyers can get Apple products is increasing rapidly, Wolf notes, meaning that Apple retail stores can't keep pace with the growth of Apple's revenue overall.

Needham analyst, Charlie Wolf, who has pointed out the scarcity of Apple stores, said that the company is continuing to expand its range of points-of-sale rather than its own stores.

"With ever more places to buy Apple products, the need to specifically visit an Apple Store for purchases has been diminished. Nonetheless, the retail stores continue to show strong growth even in a dour economy."

According to the analysis by Needham, Apple stores have seen sales growth at an annual rate of 18 percent over the last ten years, while sales of non-Mac products have risen 25.5 percent.

Sales of Macs themselves have seen a growth of 12 percent, quite a creditable performance considering that PC sales are seeing depressed demand.

According to Wolf, same store sales rose 5.4 percent in the company's fiscal fourth quarter, up from 3.2 percent growth seen in the June quarter.

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