The Wall Street Journal today covers Steve Job's retail strategy for Apple, that has succeeded beyond Wall Street's wildest dreams -- and, in fact, was roundly dismissed as a bad idea when Jobs first came up with it five years ago. Apple believed its computers weren't being merchandised appropriately, especially when compared to PCs running the ubiquitous Windows operating system. Why not open Apple retail stores? Jobs thought.

Of course, there are lots of reasons why not, starting with cost and continuing on through the headache of managing retail employees and ending with pissing off your retailers. Although the first few concerns seem to be far outweighed with the fantastic success of the Apple stores ($2.35 billion in revenue for fiscal 2005, 17% of Apple's total sales), the last continues to be an issue. Several retailers have sued the computer company, claiming that Apple gives its own stores preference for hot new products.

Even more than sales, Apple stores seem to be a flashpoint for the company's avid (or would "avid" be a vast understatement?) customers and feature unique and iconic only-in-Apple designs. With Friday's upcoming unveiling of Apple's second Manhattan store under the GM building, the company will be stepping into 24-hour retail and certainly will become even more of a mecca for Apple enthusiasts everywhere. Doubting Thomases should only look to the company's stock price (up $0.25 on a bad day for the market) to see whether the market believes Jobs can pull off yet another unusual success.

[Photo of Manhattan Apple store Patricio00]

Apple's new stores wow the Street (and the street) originally appeared on BloggingStocks on Wed, 17 May 2006 17:24:00 EST. Please see our terms for use of feeds.