Apple Stores Make $4,032 Per Square Foot

Apple stores make $4,032 per square foot per year. For comparison’s sake, From Fortune:

Saks, whose flagship is down the street, generates sales of $362 per square foot a year. Best Buy (Charts) stores turn $930 – tops for electronics retailers – while Tiffany & Co. (Charts) takes in $2,666.

Fortune also says that if Apple sells its goal of 10 million iPhones in 2008, Apple stores will make as much as Best Buy overall, in a fraction of the space.

10 million iPhones? —MEGHANN MARCO

Apple America’s Best Retailer [CNNMoney]
(Photo: Maulleigh)


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  1. juri squared says:

    This doesn’t surprise me, given how high the average cost of an item at the Apple store is. Sure, there’s an aisle full of $15 iPod cases, but then there’s all the $100+ software, the plethora of iPods, and the $3000 computers at the high end. The only other place I can think of where the average price of an item would be so high is a jewelry store. Even Sony Style stores sell lots of movies, CDs, and games that bring the average price down.

    Still, those Apple stores are really nice, so I think they deserve the accolades.

  2. drrew says:

    What 10 million people are going to buy an iphone??? That seems like crazy talk to me.

  3. strandist says:

    @drrew: Perhaps the same people who bought 88 Million iPods?

  4. Jobs said almost a billion phones sold worldwide in 2006. he just wants 1%.

  5. pediddle says:

    1% times 500 dollars each is a lot more than I think people are willing to pay. They’d better have some amazing contract/discount deal up their sleeves.

  6. Havok154 says:

    So, is that what kind of money you make when all of your products are sold at a 300% markup?

  7. scoobydoo says:

    I’m not sure the iPhone is going to help the stores. I was under the impression that they were only going to be sold at Cingular stores…

  8. InsaneNewman says:

    I hate to use a (shudder) Slashdot reference, but RTA (I leave out the F ’cause I’m a nice guy).

    “Our stores were conceived and built for this moment in time – to roll out iPhone,” says Jobs, summoning one to the table with a tantalizing I’ve-got-the-future-in-my-pocket twinkle. If sales are anywhere near expectations – Apple hopes to move ten million iPhones in 2008 – the typical Apple Store could be selling, in absolute terms, as much as a Best Buy, and with just a fraction of the selling space.

  9. Falconfire says:

    @pediddle: People paid 450 dollars for the Motorola Q a year ago and it was a piece of shit. We are NOT talking about your shitty 50 dollar free with a plan type phones here, in the market Apples playing at 500 is average and 600-700 is NOT unheard of for these people (who usually dont buy phones with the discounts)

    @Havok154: Most of Apples products are barely more than 50 dollars over cost these days. Your comparing them to budget manufacturers like who use poor quality or end of life parts in their systems (even their server systems) and have no problem selling for a loss and making it up elsewhere. Apple doesnt sell for a loss, just like Nintendo, difference being Apple puts out products that by and large cost a lot more money to manufacture. Get a better quality Dell and you will find Apple tends to be CHEAPER and you know they are using better parts, since Apple purpose builds their boards minus the graphics board, and Dell doesn’t own any sort of manufacturing plant, they get third party board from whoever sells cheapest (which is why one model can have 8 different motherboard/chip/power supply combinations.)

    And dont even try to pull the homebuilt PC crap, your trading time and technically support for money, so its STILL costing you a lot in the long run.

  10. shad0ws says:

    @scoobydoo: actually, i was under the impression that Verizon had rejected the iPhone partially as an issue of distribution [link] … Apple wanted the iPhone to be *exclusively* sold at Apple stores and “official” distributors (i.e. not Wal-Mart or Best Buy), and Verizon wasn’t into it. therefore, i’d bet that Apple stores will be one of the few places that iPhones will be available. that wouldn’t be unusual for them…

  11. voodoodle says:

    @Falconfire: thank you

    @Havok154: stop hatin’ cause you can’t roll…

  12. scoobydoo says:


    Thanks for that… Guess my “impression” was wrong…

  13. Phyltre says:

    Was anyone else not surprised by this because Apple stores are SMALL and therefore would necessarily make more money per square foot?

  14. guroth says:

    Apple has a HUGE markup on their products, combined with the fact that they sell more iPods than anything which don’t take up much space and you have a business that makes a lot of money per square foot.

    Add this together with the fact iPods are only supposed to last you 2 years (planned obsolescence, why do you think you can’t replace the battery yourself?) and you have a money maker.

    Congrats Apple on sticking it to the customer!

  15. aestheticity says:

    your entire post is bunk, falconfire. im not going to take you up on it because that little fantasy is clearly something you hold dear. are you by any chance a journalist?

  16. TVarmy says:

    About the 10 million phones figure…

    Apple usually tries to give something away with laptops in a student deal during the summer. Who wants to bet they’ll heavily discount the iPhone for students buying a Macbook, scoring them word on the street because hip college kids are using them and additional sales (Surely there’s enough mark up in the laptops to pay the difference)?

  17. asherchang says:

    With the ridiculously high price, monopolistic deal with US Cellular (or was it Sprint?) and new iPod models’ reputation for always having bugs and other problems… I doubt anyone beyond the most hardcore gadget nerds and fashionable will even bother.

    Although I admit the design and features are very “innovative”, and by “innovative” I mean the most obvious next steps and common sense fixes to the current design and features of cellphones.

  18. Cap'n Jack says:

    I’m actually pretty surprised to hear that, considering how people always say that they don’t need to spend much to repair a Mac, since they hardly ever break (I don’t have one myself, too expensive). I guess they’re selling a crapload of ipods and macbooks.

  19. Cap'n Jack says:

    @Falconfire: It’s people like Falconfire that make Apple fans seem like rabid, elitist yuppies. Stop looking down your nose at PCs; obviously the majority of consumers don’t agree with you, or else we’d all have Macs.

    That said, the day I can buy a Mac for $500 is the day I integrate it into my home office, alongside my PC in perfect harmony.