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The popularity of iPhones, iPods and iMac computers are making the flagship Apple store in Regent Street the most profitable per square foot in London, analysts said today.
Takings have soared to £60million a year, or £2,000 per square foot - more than double the estimated sum made by Harrods.
Neil Saunders, a spokesman for retail analysis agency Verdict, which estimated the figure, said: "To make £60million a year from a shop of Apple's size is absolutely phenomenal. We've known for a while that Apple is far more than just a computing brand, and the latest findings prove it.
"Apple's Regent Street store has extremely strong footfall, since it has become a tourist attraction in its own right, and as it stocks its own products, it controls the price, helping it to boost profit. Shoppers pay a premium for the Apple brand, and there is never discounting, so customers don't waver over buying elsewhere."
Analysts estimate that Harrods is making £751 per square foot, while Topshop in Oxford Circus takes about £1,000 per square foot. Rival electrical retailers average about £722 per square foot.
When the Apple store opened in 2004 it was the firm's first European branch. But the business has expanded to 21 in Britain, including branches in Brent Cross, Westfield and Bluewater.
The Regent Street store, 28,000 square feet across two floors, follows a policy of putting every item for sale on display, and encouraging shoppers to use iMacs to access free internet or listen to music on iPods. The firm's success has centred on the iPhone, which costs up to £538, and the iPod touch, costing up to £283. Apple is expected to release the iPad, a new touchscreen computer, in the coming months. It will allow users to view films and websites on a screen larger than iPhones but smaller than a traditional laptop.
Apple increased its revenue from its global shops by 2.5 per cent in the first six months of this year to £1.85 billion. After its latest financial results chief executive Steve Jobs said: "We're making our most innovative products ever and our customers are responding."
Reader views (7)
Have been into the Apple store a couple of times to buy something but the queues are massive on a Saturday afternoon. So I usually end up buying it online instead. Good shop apart from that.
- Paxton Pat, London, 12/10/2009 14:01
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After 15 months I've really started to despise how flakey my Iphone is, still, it's only 3 more months and I'm off contract and over to an Android phone.
- Bob, Cheam, 12/10/2009 13:01
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The sales staff are noticeably far better motivated and helpful than in any other shop in London.
- Bloke, London, 12/10/2009 13:01
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Bob: you'll regret the move to Android more than you despise your iphone...
- Adam, London, 12/10/2009 13:01
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I LOVE THE IPOD! DONT DISS APPLE!!!
- Kayleigh, London, 12/10/2009 13:01
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They do make some great products, but they seem to get away with unbelieveable price fixing and anti-competitiveness.
- D.W., London, 12/10/2009 13:01
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@DW - Particularly with recent price cuts, I think many of their products are competitively priced *for their feature set*. Granted they don't do bottom end stuff, so that gives the impression all their products are expensive.
I was shopping for a small form factor laptop recently, and found competing products with similar specifications from other manufacturers only a little cheaper. For an item like a laptop which I might keep for 2-3 years, and spend 5-6 hours using per working day, it seems stupid not to pay a little extra. I'd get a quality item, walk-in store support, the industry's highest customer satisfaction rates, the ability to use Windows or Mac OSX, very good resale value, generally very affordable OS upgrades etc etc.
Doesn't sound like a bad bargain to me when put in that light. To be honest, given the current economic climate and the rest of the PC industry, its hard to see how they could effectively price-fix.
- Eric, United Kingdom, 12/10/2009 13:01
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