Apple Store
| File:Apple store at Carindale Shopping Centre, 2022(cropped).jpg Apple Store located in Brisbane, Queensland, Australia | |
| Company type | Division |
|---|---|
| Industry | Retail |
| Founded | May 19, 2001 Tysons, Virginia, and Glendale, California, U.S. |
| Founder | |
| Headquarters | Apple Park, , United States |
Number of locations | 535 locations[1] (273 U.S./262 international) |
Key people |
|
| Parent | Apple Inc. |
| Website | apple |
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The Apple Store is a chain of retail outlets owned and managed by Apple Inc., specializing in the sale and support of Apple products such as Mac computers, iPhone smartphones, iPad tablets, Apple Watch smartwatches, Apple TV media devices, software, and related accessories.
Established in May 2001 by then-CEO Steve Jobs alongside retail executive Ron Johnson, the Apple Store concept was designed to enhance Apple's direct consumer interaction and retail environment. Following the relaunch of Apple's online store in 1997, the company inaugurated its first two brick-and-mortar locations in 2001. Despite early doubts from industry observers, these stores rapidly surpassed competitors and achieved $1 billion in annual revenue within three years—a milestone that set a new standard for retail expansion. Presently, Apple maintains 535 retail outlets across 27 nations, including prominent flagship stores such as the recently launched location in Umeda, Osaka.[1][2] The strong consumer demand contributed to retail sales exceeding $16 billion worldwide by 2011.
In May 2016, then-SVP of Retail Angela Ahrendts unveiled a revamped flagship Apple Store located at Union Square in San Francisco, featuring expansive open layouts and upscale architectural details such as expansive glass doors.
While many Apple Stores are situated inside shopping centers, others operate as standalone flagship venues positioned in high-profile urban areas. Apple has secured design patents and received architectural accolades for innovations including glass staircases and cube structures. The success of the Apple Store has transformed the consumer electronics retail sector by capturing significant market share through exceptional product presentation and customer service. The brand’s loyal customer base frequently results in substantial queues during new store openings or product launches. Employees at Apple Stores benefit from competitive wages above industry standards, educational assistance, healthcare coverage, and discounts on products. Nonetheless, there have been reports highlighting issues such as customer harassment incidents and workplace pressures faced by retail staff.
Overview
Apple maintains a vast network of retail outlets worldwide, including prominent flagship stores such as the Grand Central Terminal location in New York City. Many of these multi-story stores showcase unique architectural features like glass stairways and connecting bridges, embodying the company's strategy to elevate customer engagement through cutting-edge design. These architectural innovations, strongly advocated by former CEO Steve Jobs, have garnered Apple numerous awards and patents, notably for its signature glass staircases and the iconic glass cube at the Fifth Avenue store, developed in collaboration with architectural firms Bohlin Cywinski Jackson and later Foster + Partners.
The distinctive retail design serves as a strategic asset that underpins Apple's global presence and reinforces its brand prestige in critical markets. Leadership overseeing Apple’s retail operations has evolved significantly, with key executives influencing its business framework. From 2001 to 2011, Ron Johnson held the position of Senior Vice President of Retail Operations, directing site selection and store design, while inventory oversight was managed by then-COO (now CEO) Tim Cook, whose expertise in supply chain management enhanced operational effectiveness.
In January 2012, John Browett assumed retail leadership but was dismissed after six months due to misaligned strategies. Later, in October 2013, Apple appointed Angela Ahrendts—formerly CEO of Burberry—as Senior Vice President of Retail. Her tenure focused on strengthening both Apple’s brick-and-mortar and digital retail channels. Following Ahrendts’ exit in April 2019, Deirdre O’Brien expanded her responsibilities to include global oversight of People and Retail functions, sustaining Apple’s growth trajectory. By 2021, she confirmed ongoing plans to increase the number of Apple Stores worldwide despite a surge in online sales fueled by the pandemic.
Work environment
Apple Stores attract a large pool of candidates, particularly younger workers drawn by the brand’s popularity and high demand for products such as the iPhone and iPad. The work environment is fast-paced, though advancement opportunities tend to be confined mainly to management positions within retail. Employees benefit from compensation packages that exceed typical retail wages, including perks like 401(k) plans, discounts on products, and stock options. Remarkably, retention rates among technicians at the Genius Bar surpass 90%.
Nevertheless, a 2016 interview published by Business Insider featuring an Apple Store employee in the UK highlighted several challenges: frequent customer harassment, a demanding internal culture of critique, limited chances for promotion, and wages low enough that even discounted product purchases remain difficult for some staff.
In April 2022, more than 70% of eligible workers at the Apple Store located in Cumberland Mall, Atlanta, Georgia, expressed interest in forming a union. Their demands included a $28 hourly wage, enhanced benefits, and profit-sharing arrangements. Should this effort succeed, it would represent the first unionized Apple retail location in the United States, signaling shifting labor relations within Apple's retail division.
Countries and regions
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Third-party retail
Upon returning as interim CEO in 1997, Steve Jobs, Apple’s co-founder, initiated strategies aimed at strengthening Macintosh retail visibility. Although Apple introduced innovative products such as the iMac and PowerBook G3, alongside launching an online store, the company remained reliant on large retail chains. These outlets often featured inadequately trained personnel and limited Mac-focused areas, which impaired customer engagement and made Macs less distinguishable from Windows-based computers. Meanwhile, retailers increasingly promoted their own budget-friendly generic PCs, which negatively affected Mac sales and profit margins.
Joining Apple in 1998 as Senior Vice President of Worldwide Operations, Tim Cook revealed intentions to streamline the network by eliminating underperforming partners to enhance the purchasing process. Jobs terminated collaborations with key retailers like Sears, Best Buy, and Circuit City, concentrating efforts on CompUSA, which committed to establishing dedicated Apple sections staffed by knowledgeable employees. Additionally, Apple capitalized on local user groups to support the launch of new hardware and software.
From 1997 through 2000, Apple reduced its authorized reseller count from 20,000 to 11,000 to optimize operations and better compete with Dell. Jobs openly confronted Dell’s direct-to-consumer sales approach by highlighting Apple’s product innovations, retail locations, and custom build-to-order system. While Dell moved away from retail outlets to improve efficiency, Apple retained a hybrid strategy combining channel partners with CompUSA.
After abandoning a retail concept designed by Marc Newson, Apple collaborated with San Francisco-based Eight Inc., recognized for creating Apple's MacWorld expo designs, to craft a minimalist "store-within-a-store" model focused on product presentation. This design was piloted in Japan and adopted by CompUSA starting in 1999. However, mystery shopper feedback indicated that employees frequently prioritized Windows PCs over Macs due to insufficient specialized training. Despite these challenges, Mac sales at CompUSA grew, encouraging Apple to authorize Best Buy as an additional reseller.
Profit margins for resellers on Mac products remained around 9%, making profitability largely dependent on bundling service contracts—a segment where retailer performance varied significantly. The retail tactics employed during this era laid important foundations for Apple's subsequent expansion into direct retail and its heightened emphasis on customer experience.
Online store
When Steve Jobs returned to Apple in 1997, Michael Dell, founder and CEO of Dell, suggested that Apple should shut down and return capital to shareholders. This remark spurred Jobs to utilize technology from his previous company NeXT to develop a superior online storefront. On November 10, 1997, Jobs unveiled Apple's online store, positioning it as a direct competitor to Dell’s successful e-commerce platform by offering new products alongside a build-to-order manufacturing model.
In August 2015, Apple redesigned its website by removing the standalone "Store" tab and integrating retail elements throughout the site to improve user experience. By August 2021, a redesigned store section with a dedicated tab was reinstated, preserving the ability to purchase products directly from individual pages.
Origins
Steve Jobs sought to revolutionize Apple's retail approach to gain greater control over product display and brand communication, addressing the constraints posed by third-party retailers. In 1999, he brought Millard Drexler, the former CEO of Gap Inc., onto Apple's board to provide strategic expertise in retail. The following year, Jobs appointed Ron Johnson from Target to spearhead retail development efforts. Alongside Allen Moyer from The Walt Disney Company, the team designed store prototypes near Apple’s Cupertino campus.
Apple launched its inaugural retail location on May 19, 2001, at Tysons Corner Center in Tysons, Virginia, followed shortly by a second site at Glendale Galleria in Glendale, California. This debut attracted more than 7,700 visitors who collectively spent around during the opening weekend. This event marked the start of Apple’s direct-to-consumer retail strategy, which significantly boosted both its market share and brand presence.
Expansion
Although initially met with doubt, Apple Stores rapidly validated their business concept, achieving $1 billion in annual sales by 2004—the fastest growth recorded for any retailer at that time. By 2006, quarterly revenues reached $1 billion. Then-CEO Steve Jobs attributed this achievement to the distinctive investment in store aesthetics and customer experience. In 2011, Apple Stores across the U.S. generated an average revenue of $473,000 per employee and led American retailers in sales per square foot, nearly doubling the figures of second-ranked Tiffany & Co. Globally, Apple Stores produced $16 billion in revenue that year. Under the leadership of former Senior VP of Retail Operations Ron Johnson, Apple redefined retail spaces into immersive brand environments that strengthened customer loyalty and brand value. Marketing analyst Scott Galloway characterized Apple Stores as "temples to the brand," highlighting their contrast with competitors’ less engaging retail formats.
Apple also broadened its market penetration through collaborations with large-scale retailers such as Best Buy and Staples. Authorized resellers maintain dedicated Apple sections designed to deliver a distinct brand experience. The partnership with Best Buy includes Apple Solutions Consultants who train staff on Apple’s product offerings, enhancing sales performance.
In May 2021, executive Deirdre O'Brien reiterated Apple's dedication to expanding its global retail footprint, signaling ongoing investment in physical stores as a vital growth avenue.
Influence
Apple Stores have reshaped the consumer electronics retail sector, impacting competitors and industry leaders alike. According to The Globe and Mail, Apple's retail approach has redirected customer traffic, control, and profits away from carriers like Verizon and electronics retailers such as Best Buy, which previously depended heavily on wireless phone sales. CNET noted that Apple's retail experience surpasses Best Buy’s by providing more knowledgeable sales personnel, superior products, and more attractive store environments.
In October 2009, Steve Jobs and his retail team were reportedly involved in revamping Disney Stores, applying lessons learned from their success with Apple Stores. His participation was significant given his role on Disney's board since 2006 and the demonstrated effectiveness of Apple's retail model.
By August 2009, Apple’s first UK store on Regent Street had become London’s most profitable location of its size, generating £60 million annually—equivalent to £2,000 per square foot.
The design and operational model of Apple Stores have inspired global electronics brands such as Huawei, Samsung, and Xiaomi to implement comparable retail strategies, underscoring Apple's influence and competitive edge in the market.
Redesign
In May 2016, Apple unveiled a revamped version of its Union Square Apple Store in San Francisco, featuring expansive glass entrance doors, spacious interiors with interactive touch tables and shelving, and newly branded sections. Central to the layout is "The Avenue," a dedicated area for hardware sales and expert guidance, staffed by specialized "Creative Pros" focusing on music, photography, and app development. The traditional "Genius Bar" was reimagined as the "Genius Grove," an inviting support zone adorned with trees. "The Forum" includes a sizable video display used for game nights, creative workshops, and community gatherings. Certain stores also introduced "The Plaza," an outdoor venue offering complimentary 24/7 Wi-Fi and weekend live music events. Designed under the direction of Jony Ive and Angela Ahrendts, this concept aims to transform Apple Stores into community hubs or "town squares," promoting human connection beyond digital experiences. This redesign strategy is being rolled out across all Apple retail locations worldwide, with some stores temporarily closed or relocated to accommodate renovations.
By April 2017, Apple had extended its "Today at Apple" educational program—initially launched alongside the Union Square redesign—to every store globally, providing more than 60 complimentary interactive workshops centered on creative skills.
Beginning in May 2018, a Video Wall was introduced in retail locations around the world, with flagship stores such as Apple Palo Alto receiving enhanced versions.
Genius Bar
Every Apple Store houses a Genius Bar that delivers technical support and repair services for products that are not considered vintage or obsolete. Geniuses frequently assist customers with older devices as well.
Same-day repairs are available at the Genius Bar for OLED/LCD screen replacements and lithium-ion battery swaps. Devices sent to Apple Repair Centers usually return within three business days.
In May 2017, Apple launched Today at Apple, a series of no-cost training sessions led by Creative experts covering topics like device fundamentals, professional video and audio editing software, coding classes for children, and educational tools for classrooms.
The largest Genius Bar worldwide is situated in Amsterdam.
Store openings
Apple Store launches and new product releases often draw substantial crowds, with some customers queuing up a day before opening. Among notable events are the 2006 launch of the Fifth Avenue store in New York City, which attracted visitors from around the globe, and the opening of Apple Michigan Avenue attended by CEO Tim Cook alongside Illinois Governor Bruce Rauner.
Stores at corporate locations
In 1993, Apple established The Company Store at its Apple Campus on Infinite Loop in Cupertino, California, serving as the exclusive retail outlet for Apple-branded merchandise such as T-shirts and mugs. After closing for renovations in June 2015, it reopened in September featuring a contemporary design consistent with other Apple Stores and expanded offerings including iPhones. This Infinite Loop location permanently ceased operations on January 20, 2024.
Following the move to the new Apple Park headquarters, Apple opened a comparable store showcasing exclusive products at the Apple Park Visitor Center, which welcomed visitors starting November 17, 2017.
Imitations
In July 2011, a blogger from Kunming, China, uncovered a remarkably authentic counterfeit Apple Store that replicated key features such as the glass façade, wooden tables, staircase, marketing visuals, and staff uniforms typical of genuine Apple retail locations. The Wall Street Journal emphasized the meticulous attention to detail in recreating Apple's in-store atmosphere. This fraudulent outlet attracted global media coverage and was referenced by U.S. presidential candidate Mitt Romney during the 2012 election debates as an illustration of how counterfeit products threaten American employment. Although Chinese legislation forbids retailers from duplicating competitors' store designs, enforcement of these rules remains limited.
Unauthorized sellers of Apple products are prevalent throughout China; near the original counterfeit store, two additional fake outlets operated, one displaying a sign with the misspelling "Apple Stoer." Investigations confirmed that the first imitation was not among the 13 authorized Apple resellers in Kunming. According to Reuters, local officials shut down two counterfeit stores for operating without proper licenses but permitted three others—including the internationally recognized one—to remain open while their owners pursued official reseller authorization from Apple. At that period, only four official Apple Stores existed in China, all situated in Beijing and Shanghai.
These imitation outlets should not be confused with Apple Premium Resellers—independent authorized retailers expected to maintain service quality and store aesthetics consistent with official Apple Stores. Premium Resellers usually operate in regions lacking direct Apple Store presence and form part of Apple's global retail expansion strategy to increase market penetration.
See also
External links
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