Sunday, December 30, 2007

New York Times: Inside Apple Stores, a Certain Aura Enchants the Faithful

"Apple now derives 20 percent of its revenue from its physical stores. And the number is growing. In the fourth quarter in 2007, which ended Sept. 30, Apple reported that the retail stores accounted for $1.25 billion of Apple’s $6.2 billion in revenues, a 42 percent increase over the fourth quarter in 2006.

Apple stores generate sales at the rate of about $4,000 per square foot a year, according to a report last year by Sanford C. Bernstein analysts.

As other electronics makers like Dell, Nokia and Sony still struggle to find the right retail formula, Apple seems to have perfected it.

Not only has the company made many of its stores feel like gathering places, but the bright lights and equally bright acoustics create a buzz that makes customers feel more like they are at an event than a retail store. "

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