What Is Apple Worth?
01.04.07 - 11:59am
Apple, since it’s turnaround in 1997, has been seen as a company with innovation, superb design, and just plain brilliant business. One of the ways they’ve demonstrated their business savvy has been to open some of the hippest, hottest stores spanning the world.
Initially the stores were opened because Apple wasn’t satisfied with the way other stores were getting their products to consumers, - i.e. the lack of knowledge amongst workers in the store. So Apple created their own store, with the best in customer service, - i.e. employees that could answer any questions a buyer might ask.
They didn’t stop there however, they took their stores to a whole new level, offering the best in architectural design, sporting “bling, bling” such as the genius bar, and putting on a variety of shows and top level concerts such as their “Live from London” series. The stores also host a variety of one hour workshops throughout the day designed to help one learn “everything Mac”.
What has all this accomplished? Well, not only are Apple’s stores on every tourists mind as they enter New York and London but they also are currently worth the most amount of money per square foot. More than even luxury stores such as Tiffany’s. Apple currently has floor space that is worth $4032 per square foot. Tiffany’s square footage worth is $2666.
The worth of the square footage is calculated by taking the sales of Apples stores vs square footage of stores. Apple’s stores currently account for $3.77 billion of Apples $20 billion revenue for 2006. To put this in perspective Best Buy, which is the leader in electronic sales with $31 Billion, only has a square footage worth of $930 and Neiman Marcus, top retailer in fashion, has $611 square footage worth.
Apple will add to its development of Apple Stores in 2007 by utilizing approximately $360 million in capital expenditures. Apple spent $200 million opening stores in 2006, adding 41 new retail stores with 10 international. 2007 will see more openings than ever and seems to be the start of bigger and better for “all things Apple”.
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