Apple’s retail juggernaut is magical and revolutionary in its own right

“Ten years after Apple opened its first retail store, there are 323 more, 91 of them overseas, and together they are generating upwards of $3 billion per quarter ($3.19 billion last quarter–up 90 percent year over year),” John Paczkowski reports for AllThingsD. “According to Yankee Group analyst Carl Howe, who’s done the math, that means Apple Stores pull in about $5,000 per square foot in revenue per year, which far exceed not only Best Buy’s $1,000 per square foot, but Tiffany’s roughly $2,700 per square foot as well.”

“Little wonder Apple Stores are the fourth fastest growing retail business in the world, according to the National Retail Federation. Their patrons are among the most satisfied around–even if they don’t actually buy anything, a fact Howe noted in his recent survey of Apple Store customers,” Paczkowski reports. “’72 percent of consumers [said they] are highly satisfied with Apple products and services,’ Howe explained. ‘Intriguingly, 84 percent of consumers who shop in an Apple Store say they are highly satisfied with its products and services, even if they don’t own any Apple products.'”

Read more in the full article here.

MacDailyNews Take: From the SIDAGTMBTTS (never live it down) file:

I give [Apple] two years before they’re turning out the lights on a very painful and expensive mistake.David Goldstein, Channel Marketing Corp. President, May 21, 2001

Related articles:
Apple Retail Stores hit 10th anniversary (with video of Steve Jobs’ tour of 1st store) – May 18, 2011
Apple Store: ‘The best damn retail experience in America!’ – December 2, 2010
Apple’s retail stores generate huge sales – December 27, 2007
Piper Jaffray finds ‘gravitational pull’ at Apple Retail Stores – November 26, 2007
Apple thinks different with cash register-less retail stores that bring in billions – November 23, 2007
Apple makes retail seem ridiculously easy – May 29, 2007
How Apple’s Steve Jobs is revolutionizing Manhattan retail – May 08, 2007
Fortune: Apple Inc. is America’s best retailer – March 08, 2007
How Apple Retail Stores beat Best Buy, Neiman Marcus, and Tiffany – December 19, 2006


  1. Last year was the first time I saw that sales-per-square-foot calculation, and it was specifically for the Fifth Avenue store in Manhattan. At the time, the store was making significantly more money than ANY 5th Avenue retailer (in addition to the abovementioned Tiffany, they are Bergdorf Goodman, Bulgari, Waterford, Armani, Chanel, Cartier, Louis Vuiton flagship store, Salvatore Ferragamo and many others).

    Based on this article, it looks like not just the Fifth Ave store, but an AVERAGE Apple store (i.e. from the 5th Ave, down to the hole-in-the-wall small ones) still makes much more money than 5th Avenue flagship stores of the highest of the high-end luxury retailers.

    There are many quotes from recent history regarding Apple that look silly today, In such a fierce competition, I believe this Goldstein quote still wins.

  2. The Apple store is a catalyst for new adopters of the Mac platform. It gives you the opportunity and more importantly time without being hassled by a sales assistant to test drive Apple products before buying. Nothing like a hands on experience before making your mind up.

    The most notable thing I remember from my very first visit to the Apple store was being shown two things. One, how effortlessly you could switch to Windows XP/Vista under emulation mode in Parallels/Fusion and two, how magical it was to be shown a new paradigm for moving files and paragraphs within a news article in Safari by simply dragging and dropping. That totally blew my mind as Windows forces you to do things in a way that only a geek could love in an extremely hierarchical fashion.

      1. He’s waiting for the other shoe to drop – when Windows 8 makes an appearance. That’ll be the time the right nut shows up because by that time Apple would have taken so much OS market share away from Microsoft that Ballmer will feel as if he’s been kicked in the nuts – all two of them.

      1. don’t mean to be offensive, but that’s a pretty superficial comment, especially to the more experienced readers here. #1, apple has shown you can’t take marketshare to the bank. this is critical unless you still live with your mother. #2, when it cracks 10% (it’s already that in the US) apple will not stop and have a party. it may have a party when it passes exxon as the most valuable company on earth. as an aside apple passed the company that has the 90% OS marketshare in corporate value last year. #3, people who recognize that by measures that adults understand apple has surpassed ms, dell, hp, etc., trot out the meaningless marketshare numbers. #4, here’s a measure for you, with less than 20% of the mobile devices on the network, ios consumes 80% of the mobile video. in the future, the consumption of media becomes more important than marketshare because that can be monetized, whereas marketshare cannot.

        1. replying to myself. must get on top of my glucose. here is a spin on the marketshare discussion. 90% of the items in a dollar store can be purchased in a walmart or target for more than a dollar. how many of you shop at a dollar store vs a walmart or target?

    1. Do you (and all other incessantly trotting out the “marketshare” idea) know ANYTHING about business at all? “Marketshare” is an utterly irrelevant metric, unless one also includes other factors such as margin. Apple is massively more successful than any other computer or phone manufacturer. Not a bit — massively.

    2. Mac Market Share Around the World: USA 15%

      I think what fdssdfa’s trying to say is that OS X will never crack 10% marketshare in the US in his head.


      Umm… Do you know what the word “superficial” means? The fact that Apple owns 90% of the marketshare for computers over $1000 is a really big deal, because the over-$1000 market is where the profit margins are.

      That’s why Dell, HP etc. can sell tens of millions of PCs and make far less money than Apple does from selling a “mere” ~3 million Macs per quarter. You CAN take marketshare to the bank, if it happens to be a 90% marketshare of the market’s only profitable side.

      1. hey oh, you are so right right on the use of the word “superficial”. i reached in the word bag for a less obnoxious word and should have just used something like “lightweight”.

        agree with your high end sub marketshare comment. SJ said apple won’t sell junk. he didn’t say that because he’s egotistical, he said it because you have a hard time making money selling junk unless you scam people into over-paying for it. this is why people who still say apple products are too expensive are so humorous.

  3. Go to anywhere in the world where there are Apple stores side by side with HP, Acer, Samsung or Sony stores, you will notice the heavy traffic in Apple stores while the other stores are hemorrhaging of customers’ interest.

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