5th Avenue store brings Apple $440 million per year

Posted:
in General Discussion edited January 2014
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.
«134

Comments

  • Reply 1 of 64
    sflocalsflocal Posts: 6,092member
    Ay Carumba!
  • Reply 2 of 64
    macfandavemacfandave Posts: 603member
    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.
  • Reply 3 of 64
    al_bundyal_bundy Posts: 1,525member
    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
  • Reply 4 of 64
    teckstudteckstud Posts: 6,476member
    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.
  • Reply 5 of 64
    jb85jb85 Posts: 33member
    thats pretty impressive, go apple!!
  • Reply 6 of 64
    mactrippermactripper Posts: 1,328member
    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
  • Reply 7 of 64
    multimediamultimedia Posts: 1,034member
    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.
  • Reply 8 of 64
    r36 #9346r36 #9346 Posts: 11member
    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.
  • Reply 9 of 64
    godriflegodrifle Posts: 267member
    Gross or net?
  • Reply 10 of 64
    r36 #9346r36 #9346 Posts: 11member
    Quote:
    Originally Posted by Multimedia View Post


    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!
  • Reply 11 of 64
    cu10cu10 Posts: 294member
    Pic of Resistance is Futile at http://www.geekculture.com/joyoftech...cs/KScottJ.jpg

    Quote:
    Originally Posted by macFanDave View Post


    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.
  • Reply 12 of 64
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by godrifle View Post


    Gross or net?



    Must be gross. The Tech Press can't seem to understand that INCOME has a different meaning from REVENUE.
  • Reply 13 of 64
    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.
  • Reply 14 of 64
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by cu10 View Post








    you underestimate our abilities...



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



    You will be assimilated. Resistance is futile.



    good life ??
  • Reply 15 of 64
    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
  • Reply 16 of 64
    elrothelroth Posts: 1,201member
    Quote:
    Originally Posted by cameronj View Post


    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.
  • Reply 17 of 64
    Quote:
    Originally Posted by applestockholder View Post


    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



    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
  • Reply 18 of 64
    Quote:
    Originally Posted by macFanDave View Post


    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.
  • Reply 19 of 64
    anantksundaramanantksundaram Posts: 20,403member
    Quote:
    Originally Posted by cameronj View Post


    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.'
  • Reply 20 of 64
    aplnubaplnub Posts: 2,605member
    Quote:
    Originally Posted by sternapples53 View Post


    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.
Sign In or Register to comment.