5th Avenue store brings Apple $440 million per year

[AppleInsider]

Apple's two largest New York City retail stores are now known to be some of the town's largest retail cash cows, with the 5th Avenue flagship alone having drawn in $440 million in one year.

Upon looking at prospectuses showing the value of various properties in New York City's most important shopping district, the New York Post discovered the iconic store's extremely high yearly revenue and noted that it was much higher than some other stores along 5th Avenue. Clothing boutique chain Zara's store just a few blocks south, for example, is believed to take in 'just' $25 million per year.

Location is said to play a significant part for the store, which is located directly at the corner of Central Park, but isn't regarded as the only factor. Apple's SoHo store is located much further south in Manhattan but still collected $100 million in annual revenue, or four times the clothier's performance. Tourism is thought to contribute to the large the difference between the two Apple locations.

Details are unavailable for the West 14th Street store.

The figures were collected last year but hint that the Mac maker's largest stores provide a disproportionately large amount of its retail income, a ratio supported by a CNET investigation of recently opened stores elsewhere. Santa Barbara, California's just-opened State Street store is predicted to net $20 million in revenue per year as a single-floor shop in a less prominent city. Other predictions or past results are more difficult to obtain as Apple is known to fiercely guard any retail data that would let outsiders break down its sales at a per-store level.

Combined with the continuing increases in foot traffic from year-to-year at Apple's stores, word of such massive amounts of revenue leaves little surprise as to why the company is vowing large-scale makeovers of its existing stores and still plans to add 25 stores in fiscal 2009 at a time when established electronics chains have folded or put a freeze on expansion. Additional, optimized retail space has to date quickly translated into more customers, particularly in those areas where no official stores had existed before.

To that extent, Apple has already said that roughly half of the 25 new stores planned for fiscal 2009 are intended for non-US locations. Unofficially, these are known to include multiple first stores in major but previously unserved cities.

[sflocal]

Ay Carumba!

[macFanDave]

One store is moving more than a million bucks a day?!?!?! ($1.2 million per day to be a bit more precise.)

A thousand Macs per day? Mix minis, White MacBooks with the more expensive offerings and that's pretty close.

6,000 iPhones 3G? A day?

That is just a staggering amount of product being moved. Either that is very impressive or someone has made a math error.

[al_bundy]

Apartments near the midtown store cost millions and the waldorf Astoria is a minute away. A one bedroom apartment near the soho store will cost $2500 a month

[teckstud]

The article doesn't mention that the store is located at the premier real estate in Manhattan- ironically The GM Building. It is classified as a "Class A Premier" building and has the highest commercial rents in the city due to its location and views. It is one of the few with 3 sided unobstructed view. 40 or 50 floors a full block in length and width.
Bernie Madoff lived 5 blocks away. In fact there is the infamous picture taken of him holed up in his penthouse using his MacBook Pro as captured by the paparazzi.

[jb85]

thats pretty impressive, go apple!!

[MacTripper]

Click the letter e in my signature for a cool 3D views of the Apple Store in NY.

Be sure to click the numbers at the site.

enjoy

[Multimedia]

That's one of the WE NEVER CLOSE open 24 hours a day models. Was in there to get my broken IN EAR HEADPHONES replaced and it was jammin at midnight just like it was noon on a weekend.

[R36 #9346]

As a regular visitor to that particular Apple Store, I can testify to the enormous amount of foot traffic that goes through it daily.

My mother and I went to purchase iPhones one Saturday afternoon, and the place was swamped! The place is busier than Grand Central Terminal!

A large portion of the crowds are people who are obviously from out of town. I've seen many people taking photos, and shooting videos of the ride in the elevator.

Most times, whenever I see this, I think to myself, "Jeez! It's just an Apple Store!" But then again, it's not just your ordinary Apple Store.

I've visited all three Apple Stores in Manhattan, but the one on 5th Avenue is the most crowded, even at 10:00 PM.

[godrifle]

Gross or net?

[R36 #9346]

Originally Posted by Multimedia

That's one of the WE NEVER CLOSE open 24 hours a day models. Was in there to get my broken IN EAR HEADPHONES replaced and it was jammin at midnight just like it was noon on a weekend.

If midnight at 5th Avenue is to you like a weekend, you should see the store at noon on a weekend!

[CU10]

Pic of Resistance is Futile at http://www.geekculture.com/joyoftech...cs/KScottJ.jpg

Originally Posted by macFanDave

One store is moving more than a million bucks a day?!?!?! ...That is just a staggering amount of product being moved. Either that is very impressive or someone has made a math error.

You underestimate our abilities...

You are an imperfect being, created by an imperfect being.

You will be assimilated. Resistance is futile.

[cameronj]

Originally Posted by godrifle

Gross or net?

Must be gross. The Tech Press can't seem to understand that INCOME has a different meaning from REVENUE.

[lightstriker]

Half of that $440 million is just to replace the display items. The display items gets so grimy I though i was at a Best Buy. The CLEANING STAFF always look so wore out. all the refurbished items at apple.com store is from this place.

Another thing is that the store is UNDERGROUND, but it makes more money than other retailers in the world. Genius. Give that cube a blowjob.

[brucep]

Originally Posted by cu10

you underestimate our abilities...

You are an imperfect being, created by an imperfect being.

You will be assimilated. Resistance is futile.

good life ??

[applestockholder]

wasn't that retail location riddled with problems bc it is underground? Didn't Apple get a deal because no one wanted it? or am I remembering incorrectly?

Anyway, if those numbers are correct that is off the wall

[elroth]

Originally Posted by cameronj

Must be gross. The Tech Press can't seem to understand that INCOME has a different meaning from REVENUE.

With Apple's gross margin being around 36%, that's still a lot of moolah, over $150 million a year.

If Dell sold $440 million worth of its low-cost, low-margin computers, its profit would be about $10.

[sternapples53]

Originally Posted by macFanDave

One store is moving more than a million bucks a day?!?!?! ($1.2 million per day to be a bit more precise.)

A thousand Macs per day? Mix minis, White MacBooks with the more expensive offerings and that's pretty close.

6,000 iPhones 3G? A day?

That is just a staggering amount of product being moved. Either that is very impressive or someone has made a math error.

I agree as an Apple reseller in NY I can't see how they could be moving 1.2 mil a day in merchandise unless every one who walked in bought a Mac Pro for $3,000, and that was happening 24/7 all year. If you break down that 1.2 mil a day it comes out to something like $50,000 per hour.
I don't believe it.

[anantksundaram]

Originally Posted by cameronj

Must be gross. The Tech Press can't seem to understand that INCOME has a different meaning from REVENUE.

The article did not say 'income' anywhere. It simply used terms like "rake in." One could -- at least I did -- judge from the context that it meant 'revenue.'

[aplnub]

Originally Posted by sternapples53

I agree as an Apple reseller in NY I can't see how they could be moving 1.2 mil a day in merchandise unless every one who walked in bought a Mac Pro for $3,000, and that was happening 24/7 all year. If you break down that 1.2 mil a day it comes out to something like $50,000 per hour.
I don't believe it.

I have been to that store numerous times. I agree with you. While it is busier every time I visit, I just have a hard time believing they move that much product to walk-ins every year.

[solipsism]

Originally Posted by aplnub

I have been to that store numerous times. I agree with you. While it is busier every time I visit, I just have a hard time believing they move that much product to walk-ins every year.

Perhaps a huge chunk of it is corporate sales which are funneled through stores that are closest.

[Robin Huber]

Wouldn't you love Apple to challenge Microsoft to set up a store next door? Then, after a year compare sales. Loser gets out of the business.

On the other hand, Microsoft's new low balling commercials might make it a fairer fight if they set up competing mini stores in a Pic 'N Save or local swap meet.

[clexman]

I call B.S. $440M is a little high. Apple only has a few products. After a couple years at this rate everyone in NYC would own at least 1 Apple product.

I think $44 million is probably what it should read.

[solipsism]

Originally Posted by Seahawk Fan

...which leaves Mac sales that are losing money...

Originally Posted by clexman

I call B.S. $440M is a little high. Apple only has a few products. After a couple years at this rate everyone in NYC would own at least 1 Apple product.

I think $44 million is probably what it should read.

$44M does seem low for that store, but $440 does seem quite high. If we use their previous quarter retail revenue as a base and then multiply by 4 we get $5.884B, which is a 15% decline from a year ago last quarter. That figure also doesn’t account for their much busier holiday quarter, though new Macs do tend to come out during the quarter calculated. Regardless, we’re only talking 7% for that particular store without knowing the exact year of figures that is being used, which would most likely make the percentage lower. Considering that the store is in a prime area of NYC and opened 24 hours the article does ring true. Still, I’d like to get more detailed data.

[solipsism]

Originally Posted by Seahawk Fan

As usual you are WRONG.

Apple Beats Estimates, But Mac Sales Decline

"But even Apple isn’t escaping the slowing economy entirely unscathed. While iPod sales managed to eke out a growth rate of 3% over the year-ago quarter, for a total of 11 million units, and iPhone sales grew by 123% year-over-year to 3.79 million units, sales of Apple’s Macintosh personal computers declined by 3% from the year-ago period."

At least give backup for your BS numbers. You are wrong and give bad numbers 80% of the time.

Link to backup quote.

http://www.businessweek.com/technolo...beats_est.html

For once it would be great for you to drop the Teckstudian doublespeak and irrational nonsense. “Mac sales losing money” does not equal a slight decline in year-over-year quarterly sales. Apple made —not lost— $1.05B selling Macs last quarter. Simply amazing that you can be a real person. I wonder if your attendant knows you’re using a computer.

[resnyc]

Originally Posted by al_bundy

Apartments near the midtown store cost millions and the waldorf Astoria is a minute away. A one bedroom apartment near the soho store will cost $2500 a month

A STUDIO apartment would cost that much in SoHo. If you could even find one. Midtown, same story.

$440 million, gross, really seems impossible when you break it down per day. Considering it's the NY Post, I wouldn't be surprised if someone mis-placed a decimal.

All those European tourists in that store (and a handful of U.S. tourists) - if you have a look, the majority of them are checking e-mail, googling "nyc nightlife" and otherwise using the store as an internet cafe.

[Adjei]

Originally Posted by Seahawk Fan

Once again your stupidity out weighs your intellect.

Apple Mac sales made money but lost Market Share.

"sales of Apple’s Macintosh personal computers declined by 3% from the year-ago period."

I wouldn't call that a win for Apple. They are betting all on the iPhone & 3.0 isn't looking to be the 4th and 1 call that Apple needs and OSX is Snow Kitty in comparison to the touch OS that Win 07 is.

Now give me your normal 200 lines of BS that make it all better and go to bed feeling good about yourself.

Ok we get it Apple is dying, now get lost.

[Adjei]

Originally Posted by Seahawk Fan

The irony is there are no walls, only glass for the street to see. That's Microsoft's theme.

It's amazing that the computer division of Apple lost money and declined in OS share.

Has anyone seen the XBox live with no control for the remote. It has voice recognition, movement recognition, Social recognition with Facebook.

It makes the Wii and Apple TV Look like a toaster.


http://www.xbox.com/en-US/?fbid=bTCKkFrw7WR

How much money has your Microsoft lost on their Xbox project?

[jouster]

:-o

wow

[macnyc]

Originally Posted by Seahawk Fan

It's amazing that the computer division of Apple lost money.

Apple Mac sales made money.

Which one is it boy-genius?

Originally Posted by Seahawk Fan

Once again your stupidity out weighs your intellect.

You might want to look in the mirror when you say things like that.

[Robin Huber]

Microsoft 2009 is like General Motors in 1970's. Living on the legacy of the biggest market share of everything, putting out mediocre product with planned obsolescence as a way to make millions. Fanboys like Seahawk pound their chests thinking this will last forever. On second thought, some of those GM cars were kinda of cool looking at least. Nothing that passes through Ballmer is cool.

[slapppy]

Originally Posted by elroth

With Apple's gross margin being around 36%, that's still a lot of moolah, over $150 million a year.

If Dell sold $440 million worth of its low-cost, low-margin computers, its profit would be about $10.

Good one!

[slapppy]

Originally Posted by Robin Huber

Microsoft 2009 is like General Motors in 1970's. Living on the legacy of the biggest market share of everything, putting out mediocre product with planned obsolescence as a way to make millions. Fanboys like Seahawk pound their chests thinking this will last forever. On second thought, some of those GM cars were kinda of cool looking at least. Nothing that passes through Ballmer is cool.

Having locked up the PC market both consumer and business the net is the next major goal. More and more sites can only work properly using Internet Explorer. Games, Media, Players, Medical....

[MacShack]

Where is Apple TV in the home market? About as well as the Kindle is selling. Which Google as of this week will dominate the market.

Your text does absolutely make no sense to me. First you talk about the Apple TV. Then You state that the Apple TV is selling as well as an e-paper device (kindle). And that you state that Google will own de e-paper/e-book market as of this week. What has that got to do with the Apple TV? And where are you sources?

iPhone has way too much competition and Apple sat on their ass and let it happen.

They should have seen that Android (which will have 15 phones in the US alone this year) was superior and the Pre has multi tasking and everything the iPhone has.

I am sorry but I believe that all the other companies stepped up after the iPhone was introduced into our atmosphere. Also 15 different phones do not guarantee a success. It means that the developers have to take all those 15 different phones into account when they write an app. And we will see how the users like the multi tasking on their pre once they got it.

No it doesn't have a billion downloads of worthless apps but RIM Blackberry has already proved you don't need a flash light on every phone.

Just a great phone.

Which only Apple has got.
All RIM has proven is that they were the one that were sitting on their buts. Whilst Apple achieved in the phone market in a year that RIM could have never dreamed off doing in their entire existence. They are one of the if not the first phone maker that really set the terms of the contract and demand certain services accompanied with their phone. They made the world first phone with a touch screen that really worked. The first browser that really worked. And were the one with an App Store that really worked.

[Oh-es-Ten]

Originally Posted by Seahawk Fan

No more than Apple has lost on their Apple TV.

At least XBox games are selling. Apple TV is a "project" for Steve.

Microsoft has obviously put in 1,000's of hours on this next upgrade.

Where is Apple TV in the home market? About as well as the Kindle is selling. Which Google as of this week will dominate the market.

iPhone has way too much competition and Apple sat on their ass and let it happen.

They should have seen that Android (which will have 15 phones in the US alone this year) was superior and the Pre has multi tasking and everything the iPhone has.

No it doesn't have a billion downloads of worthless apps but RIM Blackberry has already proved you don't need a flash light on every phone.

Just a great phone.

MS Shill much?

As usual with MS, all of yesterday's stuff at E3 was a lot of waffle and currently vapourware. Not everyone will want to stand up and talk to the game they are playing (to make a kid go fishing... WTF? Nearly as bad as Songsmith)

[brucep]

Originally Posted by Seahawk Fan

Once again your stupidity out weighs your intellect.

Apple Mac sales made money but lost Market Share.

"sales of Apple’s Macintosh personal computers declined by 3% from the year-ago period."

I wouldn't call that a win for Apple. They are betting all on the iPhone & 3.0 isn't looking to be the 4th and 1 call that Apple needs and OSX is Snow Kitty in comparison to the touch OS that Win 07 is.

Now give me your normal 200 lines of BS that make it all better and go to bed feeling good about yourself.

its a great win considering the great downturn in the market . DURING a world wide recession apple has one of its best quarters ever .

either you don't understand the whole fantastic rise of apple . every single box maker has had terrible sales and profit . except apple.

or your a TROLL who comes here to stir the pot .

>>>>

Back on topic .
Mmany Businesses shop at the 5th ave store . so maybe that helps sales .

440 milliom sounds like a lot .



9

[lilgto64]

To all those who posted speculation on how many Macs it would take to have $x in sales - have you noticed that the Apple Store also carries many products that are not computers and even products that do not have an Apple logo on them. So not ever person who walks in would have to be buying a new Mac or iPhone for Apple to be making money. Think peripherals, iPhone and iPod accessories, software, disk drives, memory sticks, BOSE headphones, etc, etc. And with all the extra space they have in that location there is a lot more space for products that work WITH Apple products. My local Apple store is not huge but they have increased the number of products on display significantly since it first opened - both in the Apple branded spaces and the non-Apple branded areas.

[al_bundy]

Originally Posted by Robin Huber

Microsoft 2009 is like General Motors in 1970's. Living on the legacy of the biggest market share of everything, putting out mediocre product with planned obsolescence as a way to make millions. Fanboys like Seahawk pound their chests thinking this will last forever. On second thought, some of those GM cars were kinda of cool looking at least. Nothing that passes through Ballmer is cool.

compare MS server products to Apple. Almost everyone says OS X server is a joke, the hardware certainly is. in less than 10 year MS went from selling Windows 2000/ Exchange 5.5/SQL 7 to a whole suite of server products that went from 0% to a large percentage of their market and growing at double digit rates.

[GTL215]

Originally Posted by al_bundy

compare MS server products to Apple....

I don't think anyone argues that MS is dominant in enterprise. Apple haters can have that one -take it. However, Apple is CLEARLY consumer-oriented, both with their computers and their phones. HALF of all Mac sales are to switchers. I'm not alone when I say I'll always be forced to use a PC at work, but will always have a mac when i get home.

[eAi]

The 5th Avenue store is one of the least plesant to be in - overcrowded and a bit opressive with quite a low ceiling and no real windows. Most of the others are much more airy, at least the ones I've been to.

Location, location, location...