How Steve Jobs changed the face of retail with the Apple Store


On May 19, 2001, the very first Apple Stores were opened, changing not only how customers would buy Apple hardware and get service for purchases, but also alter brick-and-mortar retail forever.

“This is our store,” Steve Jobs said simply, as he introduced the Apple Store for the first time. He did it in a video launch on May 15, 2001, just ahead of the first-ever Apple Stores opening the following Saturday.

The Apple Store, Apple’s first foray into its own retail stores, opened its first two locations on May 19, 2001, in Glendale, Calif. and then in Tysons Corner, Virginia. One AppleInsider staffer was present for the opening of the latter store.

In the 25 years since then, the Apple Store has grown to more than 500 stores in over 20 countries, adding its first India in April 2023. It surged in growth during very difficult times for the retail sector as a whole, including in the consumer electronics space.

And even the coronavirus didn’t see Apple Stores going out of business the way so many others have — including Microsoft.

While helping to drive Apple’s own growth and playing a key role in the launches of iPod, iPhone, iPad and more, the Apple Store also forever changed the look of computer and electronics retail. And that look has been widely imitated, from Microsoft launching that chain of lookalike stores to Sony attempting the same, and even to actual knockoff Apple Stores in China.

Steve Jobs unveiling the Apple Store at Tyson's Corner Mall in Virginia

Steve Jobs unveiling the Apple Store at Tysons Corner Mall in Virginia

Before the Apple Store

Throughout the 1990s, Apple computers were sold in a combination of chain stores and authorized Apple retailers. Support for customers from the big-box stores was iffy, and typically related to how often Apple representatives and then later contractors visited, to keep the staff in line.

Starting in 1997, Apple tried migrating to a “store within a store” concept that it agreed to with CompUSA, shortly after Jobs’ return to the company.

At the same time, Apple pulled its products out of most non-CompUSA big box retailers.

And also at that time, Dell was Apple’s main competitor and doing extremely well with its online sales. Ironically, it was doing so well in part because its online system was originally built on technology called WebObjects — created by Steve Jobs’s NeXT firm.

Inspired by Dell, and clearly able to use the technology it had acquired when it bought NeXT, Apple launched its own online store. And it did so exactly as it was preparing to launch the original iMac.

Rather than solely sell online, however, Jobs decided to open Apple-branded retail stores. In early 2000, he hired executive Ron Johnson, formerly of Target, to run them.

The first stores

On May 15, 2001, Apple announced that it would open 25 retail stores that year, including its first two that Saturday.

The first stores, as explained by Jobs in his introductory video, were to feature such products in the front section as iMacs and iBooks, as well as the then-new PowerBook G4 Titanium and Power Macs. The iPod, however, would not be released for another five months, and of course it would be six years before the iPhone showed up.

Children using the Flower Power iMacs at Tyson's Corner, the day it opened

Children using the Flower Power iMacs at Tyson’s Corner, the day it opened

Also featured in the store were music, movies, photos and a kids section, as well as non-Apple digital cameras and camcorders.

There was also a great deal of boxed software. Even as Apple changed bricks-and-mortar retail, it was radically changing how software was sold, to the point where boxed applications seem peculiar now.

Another initial selling point that has never gone away — not completely, at least — is the original incarnation of the Genius Bar. Back then the Genius Bar featured pictures of Albert Einstein and other famous geniuses who had been included in Apple’s “Think Different” ads of the time.

Jobs positioned the in-store “geniuses” as people who were able to answer customers’ questions. And if they couldn’t, there was even a landline to someone in Cupertino who could.

More than 500 fans lined up at the Tysons store starting at pre-dawn that first day. Over the weekend, Tysons and Glendale hosted over 7,500 visitors, and sold a combined $599,000 in products over the first two days.

You can no longer visit that very first Apple Store, as it was relocated to nearby larger premises in 2023. However, you can take a virtual tour of the original store as it was right back at the start, thanks to artist and developer Michael Steeber.

A modern tech store interior featuring vintage computers and laptops displayed on black and white desks, with decorative software icons and a wall poster showcasing creative professionals.

A virtual tour of the original Tysons Corner Apple Store

The Apple Store was an immediate success, but it wasn’t as if Apple was the first company to try it. Apple was just the first company to do it right. Dell had gone to online after its retail tiptoe failed, for instance, and Gateway had done much the same.

Sustained success

In contrast, the Apple Store’s success started high and has never really abated in the last quarter of a century.

Apple's Cube store in New York

Its first urban flagship, on Chicago’s Magnificent Mile, opened in 2003, with the first international Apple Store arriving in Ginza, Tokyo, Japan, later that year. Five years to the day after the first two stores, in 2006, Apple opened its iconic “cube” location on Fifth Avenue in New York.

While the number of Apple Stores worldwide crossed 500 with its first location in Korea, which opened in 2018, the originals haven’t been forgotten. The store Apple designated number one in Glendale, remains a popular site for fan pilgrimages.

Apple keeps renovating its stores, and it keeps adding distinctive new ones which lovingly preserve the architecture in old buildings, or create strikingly modern spaces from scratch.

Hard times

While it’s unquestionable that Apple has steadily opened more and more Apple Stores around the world, it did also shut them all in 2020. For months, all Apple stores across the globe were closed because of the coronavirus, and they only slowly reopened — before sometimes having to close again.

China was the first to see Apple Stores reopening, then later parts of Europe, and next selected ones in the US. At each, there were reduced opening hours, and the whole atmosphere changed as they implemented social distancing and healthcare procedures.

Notably, Apple paid its retail staff during the shut down.

It’s easy to regard Apple as having limitless funds because it is the biggest company in the world, and it’s easy to assume it gets PR value out of everything it can. But when news of this broke, it had been quietly paying the wages of staff for over 500 stores for two months.

Deirdre O'Brien (Source: Apple)

Deirdre O’Brien (Source: Apple)

The company also sent care packages to some employees in the early days of the pandemic, and it also kept every one of them clearly updated with what was happening and what Apple was doing.

In a time when other companies were at best furloughing employees and at worst making massive redundancies, Apple’s approach to its Apple Store staff was genuinely praiseworthy.

So too, in a different way, was Apple’s balancing of retail and online selling. Right from the start, it was selling boxed software in stores but planning to move applications online.

Angela Ahrendts was running retail then, and Deirdre O’Brien took over shortly afterwards. Most recently, Vanessa Trigub has become vice president of stores and retail operations.

Throughout its leadership changes, the company has managed to keep both its physical and its online stores busy. That will be how Apple was able to keep on selling well even during the lockdowns around the world.

But it is also how it was able to help the millions of people who were suddenly forced to work from home. Even if they couldn’t pop out to a local Apple Store, they could order online and get contact-free delivery.

Steve Jobs could not have anticipated the coronavirus pandemic, but the steps he took right at the start in 2001 with Ron Johnson meant that Apple Stores could continue to survive even under such pressures.

Illegal union-bashing

There are other pressures now, though, and ones that seemed unimaginable back when all of this started. If you’ve known and used Apple Stores for a long time, for instance, you know that they had none of the sales pressure you get everywhere else.

It was common for you to ask Apple Store staff for advice on how to do something, and instead of selling you an Apple device, they’d direct you to the electronics store across the mall. If that was the right place for you to buy what you needed, they said so.

That of course guaranteed that you’d be right back the next time you needed something, and it was core to the impression you had that Apple Stores were on your side. That Apple Stores were full of staff who wanted to be there, as opposed to big box resellers where untrained and low paid workers relied on sales bonuses to survive.

This is all still the case, but it’s increasingly felt as if that is because of the staff and despite Apple. For a store that defied retail norms and redefined the whole shopping experience, somewhere along the way Apple Stores have started to see the old pressure sales techniques coming back.

In 2022, one Apple Store summarized the relationship between Apple and Apple Store staff as so poor that saying anything, or complaining about anything, was as effective as “writing to Santa.”

Apple refuses to accept any such criticism and argues instead that the relationship between it and staff is strong. Specifically, Apple’s head of retail, Deirdre O’Brien, said that Apple Stores should not have unions.

“I worry about what it would mean to put another organization in the middle of our relationship,” she said in May 2022. “An organization that doesn’t have a deep understanding of Apple or our business, and most importantly, one that I do not believe shares our commitment to you.”

O’Brien would say that Apple is improving pay and conditions for its retail staff, but it’s only done that since the threat of unionization grew. The company has also been repeatedly accused of taking illegal anti-union steps, such as allegedly firing activists.

Then in Australia, when talks with Apple failed, retail staff went on strike. It was reportedly the first workers’ strike in Australian retail history

That’s not the kind of records the Apple Store should be breaking, and it is tainting what is rightly seen as a remarkable retail success.



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Recent Reviews


The first computer my family owned was an 80286 IBM clone, and it had lots of ports, none of which looked the same. There was a big 5-pin DIN for the keyboard, a serial port, a parallel port, a game port for our joystick, and of course, the VGA port for the monitor.

In comparison, a modern computer has much less diversity in the port department. Not only are there fewer types of ports, but the total number may be quite low as well. When we move to modern laptops, it can be much more minimalist. Some laptops have just a single port on the entire machine! Is this a bad thing? As with anything, the extremes are rarely ideal, but I’d say overall, this has been a pretty positive development for PCs.

The port explosion era was never sustainable

It was more like a port infection

You see, the reason we had so many ports for so long is that people kept inventing new interfaces to make up for the shortcomings of existing ones. However, instead of the newer, better interfaces making the old ones obsolete, they just became additive as perfectly summarized in this classic XKCD comic.

A comic illustrates how competing standards multiply: first showing 14 competing standards, then people agreeing to create one universal standard, followed by a final panel showing there are now 15 competing standards. Credit: Randall Munroe (CC-BY-NC)

In laptops, the need for so many ports reached ridiculous heights. In this video posted by X user PC Philanthropy, you can see his Sager/Clevo D9T absolutely packed with all the trimmings leading to a rather massive laptop.

It is undeniably a cool machine, but obviously goes against the principle of portable computing. Also, every port you install means power and space that could have been taken up by something else. That’s true for laptops and desktops.



















Quiz
8 Questions · Test Your Knowledge

PC ports and motherboard I/O
Trivia challenge

Think you know your USB from your PCIe? Put your connector knowledge to the test.

PortsStandardsHardwareConnectorsMotherboards

Which USB connector type is fully reversible, meaning it can be plugged in either way?

Correct! USB Type-C features a symmetrical oval design that lets you insert it in either orientation. Introduced in 2014, it has become the dominant connector for modern devices and supports everything from data transfer to video output and fast charging.

Not quite — the answer is USB Type-C. The older USB Type-A connector (the flat rectangular one) famously required you to flip it at least twice before getting it right. USB Type-C’s reversible design was one of its biggest selling points when it launched in 2014.

What does the ‘x16’ in a PCIe x16 slot refer to?

Exactly right! PCIe x16 means the slot has 16 data lanes, allowing significantly more bandwidth than smaller x1 or x4 slots. This is why discrete graphics cards almost always use x16 slots — they need that extra throughput to feed pixel data to your display.

Not quite — the ‘x16’ refers to the number of data lanes. More lanes mean more simultaneous data paths between the CPU and the card. Graphics cards use x16 slots because their massive data demands require all 16 of those lanes working together.

Which port on a motherboard is most commonly used to connect a display directly to the CPU’s integrated graphics?

That’s correct! The HDMI and DisplayPort connectors found on a motherboard’s rear I/O panel are wired directly to the CPU’s integrated graphics unit. If you have a discrete GPU installed, you should use that card’s outputs instead for best performance.

The right answer is the HDMI or DisplayPort connectors on the rear I/O panel. These ports bypass the discrete GPU entirely and tap into the CPU’s built-in graphics. It’s a common troubleshooting trap — plugging a monitor into the motherboard instead of the GPU and wondering why nothing works.

What is the primary function of the 24-pin ATX connector on a motherboard?

Spot on! The 24-pin ATX connector is the main power connector that delivers multiple voltage rails — including 3.3V, 5V, and 12V — from the power supply to the motherboard. Without it seated properly, your PC simply won’t power on at all.

The correct answer is delivering power from the PSU to the motherboard. The 24-pin ATX connector is the big wide plug you’ll find on every modern motherboard. It supplies several different voltage levels that the board distributes to components. PCIe cards get their supplemental power from separate 6- or 8-pin connectors directly from the PSU.

Which of the following rear I/O ports transmits both audio and video in a single cable and is most commonly found on modern motherboards?

Correct! HDMI carries both high-definition audio and video over a single cable, making it one of the most convenient display connectors available. It became standard on motherboards as integrated graphics improved, and modern versions support 4K and even 8K resolutions.

The answer is HDMI. VGA is analog-only and carries no audio, DVI-D is digital video only without audio, and S-Video is an older analog format. HDMI bundles both audio and video digitally, which is why it became the go-to connector for TVs, monitors, and motherboard rear panels alike.

What maximum theoretical data transfer speed does USB 3.2 Gen 2×2 support?

Impressive! USB 3.2 Gen 2×2 achieves 20 Gbps by using two 10 Gbps lanes simultaneously — that’s what the ‘2×2’ means. It requires a USB Type-C connector and is most commonly found on high-end motherboards, making it ideal for fast external SSDs.

The correct answer is 20 Gbps. The ‘2×2’ in the name is the key clue — it bonds two 10 Gbps channels together. USB naming got notoriously confusing around this era, with the same physical port potentially supporting very different speeds depending on the generation label printed in the spec sheet.

What is the role of the M.2 slot found on most modern motherboards?

Well done! M.2 is a compact form-factor slot that most commonly hosts NVMe SSDs, which connect via PCIe lanes for blazing-fast storage speeds. Some M.2 slots also support SATA-based SSDs and Wi-Fi/Bluetooth combo cards, making the slot surprisingly versatile.

The correct answer is housing compact storage drives or wireless cards. M.2 replaced the older mSATA standard and supports both PCIe NVMe drives and SATA drives depending on the slot’s keying. NVMe M.2 drives can achieve sequential read speeds many times faster than traditional SATA SSDs.

Which audio connector color on a standard PC rear I/O panel is designated for the main stereo line output to speakers or headphones?

That’s right! The green 3.5mm jack is the standard line-out port used for speakers and headphones in the PC audio color-coding scheme. Blue is line-in for recording, and pink is the microphone input — a color system that’s been consistent across PC motherboards for decades.

The correct answer is green. PC audio jacks follow a long-standing color convention: green for headphones and speakers, blue for line-in (recording from external sources), and pink for the microphone. It’s one of those legacy standards that has quietly persisted even as USB and digital audio have become more common.

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USB-C (almost) solved the problem

So close, but not quite there yet

Released to the public in the mid ’90s, USB came to the rescue. The “U” is for “Universal” and for the most part USB has lived up to that promise. Now there was one port that handled data and power. More importantly, USB is fully backwards compatible. So if you plug a USB 1.1 device into a modern USB port, it should work. Whether you can get software drivers for it is another story, but it will talk to the host device.

USB-C has proven to be less universal than I’d like, and the situation is still far better than it used to be. A single USB-C port on one of my laptops can act as a video output for just about anything, even an old VGA monitor.

A Macbook, CRT monitor, and iPad connected together. Credit: Sydney Louw Butler/How-To Geek

My smaller laptops don’t need special chargers anymore, and the latest laptops can pull 240W over USB-C, which is enough for all but the beefiest desktop replacement machines. There is no type of peripheral I can think of that doesn’t give you the option to use it over USB.

But the complaints aren’t so much that we only get USB these days, it’s more that we get so little of it.

Minimal I/O enables better hardware design

Harder, better, faster, stronger

When you only put a handful of USB-C ports on a mobile computer, you reap numerous benefits. The low profile of USB-C means the laptop can be thinner, and the frame can be a stronger and more rigid unibody design. Internally, you have room for more battery, larger performance components, or better cooling.

A green Apple MacBook Neo on display on a wooden table with a product sign behind it. Credit: Patrick Campanale / How-To Geek

It also means the internals can be simpler, and cheaper to design and fabricate, though whether those savings are passed on to customers is another story altogether.

Wireless and cloud-first workflows reduce physical dependency

I guess they are “air” ports

Perhaps the first sign of major change was when smartphones dropped headphone jacks, but the fact is that wireless technologies are now good enough for most peripheral and data connections. So, there’s no need to connect them directly to a port on a computer. Which, in turn, means that there’s no reason to have as many ports on the computer in the first place.

I can’t remember the last time I used a wired mouse or keyboard, and I only use Ethernet for devices that need extremely high speeds, low latency, or improved reliability. For normal day-to-day use, modern Wi-Fi is just fine. So while your laptop might not have as many wired ports on the outside, those wireless chips on the inside still give it numerous connectivity options for audio, input, and data transfer.

You could even make the same argument about storage to some extent, with many thin and light systems leaning on cloud storage to make up for a lack of ports to connect external storage.

MacBook Neo colors on a white background.

Operating System

macOS

CPU

A18 Pro

The MacBook Neo with the A18 Pro chip is Apple’s most affordable laptop yet, with all-day battery life and buttery-smooth performance in a thin and light profile.



The dongle backlash misses the bigger picture

The last bit of the port protest centers around dongles, but I never understood the complaints. Having one port that can be broken out into whatever ports you need using a little box is amazing. It makes ports optional and gives you the choice. If you never plug your laptop into anything, why deal with all the ports you’ll never use?

Likewise, if you only ever use ports with your laptop when you dock it at a desk, then you can just leave your dongle ready to go on your desk, but throwing a small dongle in your laptop sleeve or bag in case you might need it is a small price to pay for all the benefits of minimal IO.



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