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#1 |
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Kasper's Automated Slave
Join Date: Nov 1997
Posts: 6,152
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Apple to build second Chicago flagship retail store
Following 18 months of indecision, Apple has finalized plans to build another high-profile retail store in Chicago, agreeing on the site of an old gas station in the city's Clybourn Corridor shopping district.
The move may be seen as a blow to the ongoing revival of State Street, where the electronics maker had also been scouting a location on in the distinguished Block 37 development, according to Chicago Business. Recently, however, Apple agreed to a $700,000 per year lease on a corner lot bound by North and Clybourn avenues and Halsted Street that once housed a gas station. The lease is reportedly only for the lot of land, where the Cupertino-based company now hopes to build a 15,000-square-foot store to be designed by local architectural firm Bohlin Cywinski Jackson. That same firm has been responsible for a number of other flagship Apple store designs, namely the glass cube retail store in Midtown Manhattan and Chicago's original high-profile Apple Store on N. Michigan Ave, which will remain Chicago's largest by about 10,000 square feet. The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods. Apple has leased this lot, which currently contains the remains of an old gas station. The Borders book store across the street is looking to sublet its retail space. Still, the location Apple's selected doesn't guarantee instant success, according to the Chicago Business, which notes that furniture retailer Z Gallerie was recently forced to shut down its store in the district. Locally based Borders is also reportedly looking to sublet its space in the corridor, which sits adjacent to lot leased by Apple. |
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#2 | |
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Registered User
Join Date: Sep 2006
Posts: 13
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#3 |
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Registered User
Join Date: Mar 2009
Posts: 652
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NYC has 2 stores in the city limits and a few more within 30 minutes driving distance outside the city
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#4 |
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Registered User
Join Date: Oct 2008
Location: Upstate NY
Posts: 220
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An old gas station site? Yikes. In addition to lease, contracting, and construction costs: EPA mandated cleanup procedures to prevent ground contamination when removing gas station fuel tanks = $$$$$
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#5 | |
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Registered User
Join Date: Dec 2008
Location: Upstate NY
Posts: 551
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Quote:
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Website: MacXpress
2.66 GHz Quadcore MacPro (Nehalem) 24" LED Apple Cinema Display 2.4 GHz 24" Aluminum iMac (Rev A) 867 MHz PowerMac G4 (Quicksilver) w/17" Apple Studio LCD 16GB iPhone 3G(S) |
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#6 |
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Registered User
Join Date: Jun 2008
Posts: 170
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Go Bears!
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#7 |
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Registered User
Join Date: Jun 2004
Posts: 4
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#8 |
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Registered User
Join Date: Apr 2009
Location: Toms River, NJ
Posts: 238
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Interesting. I'm not familiar with this location. At $700,000 a year, is this a spot that actually makes money, or will this be another showroom location like 5th Ave?
Don't get me wrong, the "showroom" store has tremendous value, but even big companies can only afford to operate a few of those, where sales barely keep pace with rent. These places are all about advertising. |
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#9 |
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Registered User
Join Date: Nov 2001
Location: middle earth
Posts: 282
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Public transportation + close to the highway + a parking garage across the street (behind borders).
This is a brilliant location. |
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#10 |
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Registered User
Join Date: Oct 2006
Posts: 4
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2?
Umm ... can you have two flagships? Isn't that like pluralizing the Lone Ranger?
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#11 |
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Registered User
Join Date: Jun 2003
Posts: 114
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A future Microsoft ad will be about how Apple converted the underground tanks to pump the store full of happy gas.
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#12 | |
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Registered User
Join Date: Jul 2007
Location: Reston, VA
Posts: 367
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Quote:
iWant new iProduct
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#13 |
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Registered User
Join Date: May 2003
Posts: 3
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#14 |
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Registered User
Join Date: Jan 2006
Posts: 1,395
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Excellent location, this is a great neighborhood.
In addition to the stores mentioned an many others nearby, this is also walking distance from the nationally famous Steppenwolf theatre as well as a couple other theatres. |
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#15 |
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Registered User
Join Date: Apr 2009
Posts: 3
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Z Gallerie actually closed down 25 of their 77 stores, Lincoln Park just being one of them...
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#16 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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Quote:
I actually think the State St location would better suited for Apple. Much more foot traffic, and easy access by all of the Loop workers to stop by during lunch and after work. The Lincoln Park location will be nearly vacant during the business day, and a pain in the arse to get to on the weekends. |
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#17 |
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Registered User
Join Date: Dec 2006
Posts: 471
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But that's the brilliance of choosing this location.
No one's actually going anywhere so they can hop out of their car and pop into the Apple store. Better yet, Apple employees can pop out and walk the lanes with their iPhone, ringing up orders and someone brings it out as soon as it's rung up. |
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#18 |
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Registered User
Join Date: Mar 2008
Posts: 45
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I would think that would be the landowner's responsibility, or was at least factored into the deal in some way. (I just bought a house with an old fuel oil tank in the back yard, so I'm dealing with that in a small way myself.)
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#19 | |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,792
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Quote:
I think they have fallen a bit as they have expanded and may be at the number 2 slot, but don't think that there stores are break even or loss leader advertising campaigns. However, it is my belief that it is the Apple Stores set which allows you to play with and test Macs, not the iPod "halo effect", that is the main reason why there has been a steady move to Macs in recent years.
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#20 |
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Registered User
Join Date: Nov 2006
Location: Lost somewhere in the deep south.
Posts: 170
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What I don't understand...
What I don't understand is why they are leasing the land. 700,000 a year is a lot of money why not buy a lot? What is the advantage to leasing over purchasing?
Fat drunk and stupid may not be the best way to go through life but it is my preferred modus operandi.
You are coming to a sad realization...cancel or allow? |
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#21 |
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Registered User
Join Date: Jun 2007
Location: Bushie'sland
Posts: 302
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They deduct the rent and deprecate the structure on their taxes. Land can't be depreciated. Lots of advantage if your the landlord, like a free building that's also tax free. A nice one too. In the "old" days many companies. such as sears, gap and wards made substantial money with real estate holdings.
Cubist
Last edited by city; 04-13-2009 at 02:11 PM.. |
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#22 | |
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Registered User
Join Date: Jul 2007
Location: Nawlins
Posts: 155
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Clean Up.
Quote:
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#23 | |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,792
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Quote:
The area itself looks to be well worth it. It's in the center of three streets and is at the nexus of two major subway stops. I think that $700k is pretty damn good, all things considered. Here is the property appraiser's site. The lot in question, or one next to it, looks to be 741 W North Chicago Ave. • http://www.cookcountyassessor.com/ * I hope Google is caching all these sat. and Street View images so that in a couple decades we can see a time shift of how areas have changed.
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#24 |
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Registered User
Join Date: Jun 2006
Location: Seattle
Posts: 146
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Southside...
They're not going to open it behind Comiskey Park (U.S. Cellular Field) lot D? I've been waiting to hear about the new Chicago Bridgeport Store.
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#25 |
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Registered User
Join Date: Jan 2009
Location: Chicago, IL
Posts: 129
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#26 | |
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Registered User
Join Date: Mar 2009
Posts: 652
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Quote:
no property tax liability, you can negotiate a long term lease for a predictable expense, less assets on your balance sheet to improve your Return on Assets ratio for investors, if you want to close and move you just break the lease and pay up, no worries about paying out a lot of money to the government for environmental cleanup costs no mortgage long list of other reasons |
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#27 | |
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Registered User
Join Date: Jun 2006
Location: Jersey (new)
Posts: 1,001
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Quote:
As a teacher in a relatively well heeled middle school, I saw the student reaction to the Powerbook I have been using for long on 6 years now go from: "You have a Mac? Ha ha, why don't you get a real computer?" 6 years ago to "Cool! You have an iPod?" (Upon seeing the white square power converter) 3-4 years ago to "You have a cool laptop!" 2 years ago to "I want a MacBook sooo, bad." or "I'm getting a MacBook Pro for (insert event here)" these days. The closest mall has no Apple Store, yet there has been a seachange in my students' perceptions of the laptop--ironically moving in inverse proportion to the actual value of the computer. As a hot new G3 Ti Book 6 years ago, it was a piece of crap; as a woefully outdated and heavy machine now, I am the envy of all who do not have a Mac. Anytime i doubt the Halo effect, I think of those many students (it was literally 6-10 different students) who saw that trademark powerconverter shape and color and assumed iPod despite the fact it was much larger and attached to my laptop on a cart in front of them...
Progress is a comfortable disease
--e.e.c. |
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#28 | |
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Global Moderator
Join Date: Jun 2004
Location: .US
Posts: 9,127
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Quote:
Here, I think it just means it's an upper tier store, is larger and isn't cookie-cutter style, unlike many of Apple's regular retail stores. Last edited by JeffDM; 04-13-2009 at 05:38 PM.. |
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#29 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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Quote:
The address above is a block off. If you want to see the lot and the abandonded gas station, enter "801 W North Ave, Chicago, IL" in maps.google.com, then click on Street View. You'll be looking right at it. Most people don't go to this area unless they are heading to a specific store(s). I really don't think they'll get much "I was in the area and decided to drop in" foot traffic like they get on Michigan Ave (or would get on State St.). But it doesn't matter to me. I can get to either location just as easy as the other. |
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#30 |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,792
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Don't the capital M's stand for major subway stop?
![]() I thought they were major junction points. I looked it up afterwards and it seems to not be that way. A bit hyperbolic, but I am not going to change it. If the stations are scary and Apple is moving in, there may be a possibility that this area will get cleaned up, including the stations.
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#31 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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Quote:
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#32 |
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Registered User
Join Date: Jun 2007
Location: Boise, ID among others
Posts: 529
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I love how all these cities have or are getting multiple Apple stores, and Vancouver B.C. --- which is one of the largest cities in western North America -- still has yet to get an Apple store. I was there about a year ago, and I was SHOCKED that there wasn't one..
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#33 | |
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Registered User
Join Date: Jul 2008
Location: Chitown
Posts: 30
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Quote:
State Street is an opportunity missed. Apple sells well to the college age crowd, and the State St location is just blocks away from DePaul's downtown campus, Columbia College, Roosevelt University, the Art Institute school, and East-West University, not to mention John Marshall Law School. The foot traffic is heavy along State, and you have stops for all of the elevated and subway lines nearby as well. The whole loop is seeing an increase in residential developments, so more people are actually living there. All of the big summer festivals are in Grant Park, and most people take the 'L' to the loop and walk there, often passing block 37. I think it would have been great, and the Block 37 development could use the help. |
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#34 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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#35 |
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Registered User
Join Date: Apr 2009
Posts: 2
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If you live around there by Lincoln Park, Wicker Park or Bucktown, you would know that that the location is awesome! People in Gold Coast where the first flagship store is near would not necessarily cab up to Halsted & North Ave., but the people from Wrigleyville and other neighborhoods on the northside could easily hop on the red line to get there. As someone mentioned earlier, this location is near Steppenwolf, a theatre, so I can see people checking out the Apple store after dinner and theatre if the Apple store closes late. Wicker Park is also a tourist destination just like Haight Asbury is in San Francisco. Celebrities such as Amy Poehler have been seen in Wicker Park's Potbelly. As for the land cost, know that many of the 3 BR, 2 BA single-family homes in this area sell for upwards of over $899K depending how close the properties are to public transportation (even in this recession). Borders is not doing well because people have gone electronic for reading materials such as Kindle and a version of it on the iPhone. But, Apple will have to hire an off-duty police officer as a security guard just like Home Depot (which is further down the street on North) and The Container Store because where there is money, there are crimes like shoplifting and using counterfeit money.
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#36 | |
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Registered User
Join Date: Apr 2009
Posts: 2
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#37 | ||||
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Registered User
Join Date: Aug 2004
Posts: 3
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-Brian |
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#38 |
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Registered User
Join Date: Apr 2009
Posts: 1
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Anyone who has ever been to the Michigan Ave Store knows that it is always crowded. As the only Apple store in Chicago it attracts people from all over into ONE store. That store is so saturated with people that Apple could easily open another store without any major hit to the profitability to the current Michigan Ave store. State street would be a good location, but it is too close to the Michigan Ave store. The Clybourn store would be a much better location. The neighborhoods close to that area are very affluent or growing into affluence (Lincoln Park, Old Town, Wicker Park, Bucktown, et). Also, that is a much more residential area than Michigan Ave. It takes me almost 30 minutes to get to the current Apple store depending on how long I have to wait for the EL. A store there would make that trip less than 10 minutes. It's a much more convenient location for people living on the north side of Chicago, and the Michigan Ave store will be there for tourists and people living in adjacent suburbs since the next closest store is in Oakbrook or Woodfield Mall.
Finally, I'd love to see Apple build their own store and make it as creative and iconic as the 5th Ave Store in NY or another stand alone store. I think doing that alone would draw people to that store. |
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#39 | |
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Registered User
Join Date: Oct 2008
Posts: 73
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#40 |
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Registered User
Join Date: Mar 2006
Location: USA - Retired in Arkansas
Posts: 4
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I love Apple. When we lived in Minnesota there were 2-3 Apple stores. But we couldn't afford to retire there. Too many taxes. So we purchased 20 acres in northern Arkansas near Lake Norfork. Problem with this setting is that it is about 4 hours from about any place to shop. Apple has a store in Memphis. It would be so nice if Apple would start building stores in booming economies down where the retirees are going. Mountain Home is a college town, but the folks, without any Apple store to see, touch, feel, think that PC's are the only thing in the computing landscape. Matter of fact, I was told by a college professor here, that I'd better get used to this as this is "Windows-land!" I wanted to puke. Not only did I get all of the assignments done that were posted on the internet (via Blackboard) with my Mac, I completed them faster and better than any of the other students that were brainwashed into believing that the only computer type was "PC".
I think it's time Apple got out of the big cities and started to do some proselytizing about the Mac. People in the big cities see the Apple stores and they are intrigued enough to be drawn in and see the wonderful products. But Apple has, so far, stayed away from the areas where a lot of purchase power has moved to. This is a college town and this one of the better places to bring a new Mac store. There! Got it off my chest. ![]() |
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