Apple chief financial officer Fred Anderson has admitted that Apple plans to open a flagship retail store in London by the end of the year.

The revelation came during the company's conference call with analysts at which the second quarter financial results were being discussed.

The company confirmed that it expects to open ten more retail stores by end of the fiscal year – promising to reach 88 by September.

Apple's 78 retail stores saw a strong quarter seeing revenue of $266 million, nearly double the $135 million a year ago. Average store revenue was $3.5 million – up from $2.6 in the year-ago quarter.

According to Apple, it saw a 97 per cent year-on-year increase in retail revenue and a 67 per cent year-on-year increase in unit sales at its Apple retail stores.

Foot-traffic in the stores decreased slightly from 6,000 visitors per store per week last quarter to 5,800 visitors per store per week in this quarter. The year-ago quarter saw 4,400 visitors per store per week.

Apple opened five new stores in the quarter, including a flagship San Francisco store.

Apple would not comment on the pending litigation on Apple store pricing discrepancies alleged by other resellers.

Apple told analysts that it now has 12,000 distribution points in worldwide – most of which were for the iPod and 80 per cent of which were located outside the US.