Apple Grows Retail Market Share Amid RadioShack and Best Buy Declines
Apple (NASDAQ:AAPL) is steadily growing its share of the specialty electronics retail market in the U.S. as more established competitors and the overall market continues to record declines, reports MarketWatch. According to data compiled by market research firm Euromonitor International, Apple’s share of the U.S. specialty electronics retail market has grown from 3.8 percent in 2007 to 15 percent in 2013.
Meanwhile, long time electronics retailer RadioShack (NYSE:RSH) has seen its share of the U.S. market slip fall from 4.9 percent in 2007, to 4.5 percent in 2013 according to Euromonitor International data obtained by MarketWatch. RadioShack also saw some temporary growth in the midst of this overall decline with a market share of 5.5 percent in 2009 and 5.1 percent in 2011. However, RadioShack’s recently announced fourth-quarter earnings results suggest that more losses are ahead. RadioShack revealed a net loss of $191.4 million, or $1.90 per diluted share in its fourth-quarter earnings results. RadioShack’s total net sales and operating revenue also dropped to $3.43 billion, compared to $3.83 billion last year.
Another major U.S. electronics retailer, Best Buy (NYSE:BBY), has seen its market share increase to 31.3 percent in 2013, from 28.7 percent in 2007. However, Best Buy’s market share has also been steadily shrinking over the past four years according to Euromonitor International data obtained by MarketWatch. BestBuy had a 33.5 percent share of the U.S. specialty electronics retail market in 2009 and a 32.7 percent share in 2011. BestBuy also recently reported an unexpected holiday season sales drop.
Ironically, as noted by MarketWatch, both RadioShack and Best Buy are trying to boost its retail store sales by offering best selling products from Apple. However, since Apple also sells its products through its own retail stores, the California-based company has also managed to take a portion of those companies’ share of the overall U.S. specialty electronics retail market.
A study conducted by Consumer Intelligence Research Partners and obtained by All Things D last November revealed that Apple Stores accounted for 11 percent of total retail cellphone sales in the U.S. According to CIRP’s survey, Apple Stores also accounted for approximately 25 percent of Apple’s total iPhone sales. Apple Stores are already well-known as the most successful retail stores in the U.S. based on sales per square foot. As noted by Fast Company, Apple Stores make over $6,000 per square foot, approximately twice what the closest runner-up makes.
Although Apple Stores are bucking the trend, the market share declines experienced by RadioShack and Best Buy appear to be part of an overall decline in the U.S. specialty electronics retail market. According to Euromonitor International data obtained by MarketWatch, the size of the market shrank to $95.9 billion last year from its peak of $109.9 billion in 2007.
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