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Fifth Avenue Apple Store posts $440 million in sales

updated 02:45 pm EDT, Thu June 4, 2009

Apple Store posts $440M

Apple's flagship store in New York City has proven extremely profitable, reporting sales of approximately $440 million a year, according to the New York Post. Part of this may be attributable to people shopping less in the SoHo area, instead purchasing more goods at Fifth Avenue stores. Such behavior would be odd however, considering that Fifth Avenue stores typically have shorter hours than their SoHo counterparts. The Fifth Avenue Apple Store pulls in at least some extra revenue as a result of being open 24 hours a day.

By comparison, the slightly larger store at Prince and Green Street generates $100 million. Other shops on Fifth Avenue are generating still lower profits, such as Zara Clothing, which brings in about $25 million a year.

Retail outlets are continuing to play a large role in Apple's overall sales. Information on two new locations has recently surfaced, including a fourth New York City store at the corner of 67th and Broadway.




by MacNN Staff

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Comments

  1. johncarync

    Joined: Dec 1969

    +1

    Another reason...

    Being an Apple geek, visiting the Fifth Avenue store was on my list of sights to see during my trip to NY last year. I'm guessing I'm not the only one.

  1. iphonerulez

    Joined: Dec 1969

    +1

    Even if you're not an

    Apple geek, it's definitely worth visiting. But it is quite a hangout for anyone that wants to be seen. I never cared much for using that staircase, but it looks pretty cool.

    That's is darn successful for a retail store in that area. It puts the other stores to shame.

  1. climacs

    Joined: Dec 1969

    +1

    eat your heart out

    PC fanbois.

  1. climacs

    Joined: Dec 1969

    0

    "I'm a PC"

    "and nobody loves me, boo hoo hoo!"

  1. LouZer

    Joined: Dec 1969

    0

    Difference

    pple's flagship store in New York City has proven extremely profitable, reporting sales of approximately $440 million a year,

    Nothing about sales is indicative of being 'profitable'. If Apple's costs are $500 million, it's actually not profitable at all...

  1. msuper69

    Joined: Dec 1969

    +1

    Sigh...

    "By comparison, the slightly larger store at Prince and Green Street generates $100 million. Other shops on Fifth Avenue are generating still lower profits, such as Zara Clothing, which brings in about $25 million a year."

    Revenue and profit are not the same thing!

  1. climacs

    Joined: Dec 1969

    +2

    true but...

    yes, sales and profit are not the same thing. Poorly written story. However, I am pretty sure that Apple is not selling anything at a loss.

  1. testudo

    Joined: Dec 1969

    -3

    Re: true but

    They may not be selling their products for a loss, but that margin doesn't count the store costs (employees, taxes, electricity, ego-massage therapy for the geniuses, rent, insurance, etc, etc, etc.)

  1. kerryb

    Joined: Dec 1969

    +3

    Apple magnet

    For those that do not live here or have never visited the 5th Avenue store is at the southeast corner of Central Park, next to FAO Schwarz toy store, across from the famous Plaza Hotel and the most densely tourist packed area of the city by a huge margin. The lease on this space must be astronomical but the exposure for Apple and it's products is fantastic. If they are only breaking even at this location it is worth more in getting the brand experience out to millions.

  1. rjdude

    Joined: Dec 1969

    +3

    Sales...

    In 2008, Apple's retail segment had a profit of $1.3B on sales of $6.3B, for a margin of almost 21%. The focus of this story is the SALES volume, and in particular this flagship store. With an average of 226 stores at the end of the 2008, $440M is a major accomplishment when the overall average per store is almost $28M.

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