Apple Store workers earn about the same as other retail workers

The New York Times is shocked at the travesty of paying workers well above the minimum wage and competing stores.

The New York Times continues its iEconomy series of in-depth reporting on the largest company in America, with an examination of what it's like to work in an Apple Store:

Last year, during his best three-month stretch, Jordan Golson sold about $750,000 worth of computers and gadgets at the Apple Store in Salem, N.H. It was a performance that might have called for a bottle of Champagne — if that were a luxury Mr. Golson could have afforded.

"I was earning $11.25 an hour," he said. "Part of me was thinking, 'This is great. I’m an Apple fan, the store is doing really well.' But when you look at the amount of money the company is making and then you look at your paycheck, it’s kind of tough."

David Segal, the article's author, is keen to contextualise the wage in terms, not just of the value of goods sold by the employees, but of how much the company earns overall:

Apple is not selling polo shirts or yoga pants. Divide revenue by total number of employees and you find that last year, each Apple store employee — that includes non-sales staff like technicians and people stocking shelves — brought in $473,000.

In fact, this article, as with the cross-national McWages Index we wrote about on Friday, just serves to illustrate a key point of labour economics: wages have just as much to do with every company the employee doesn't work for as the one they do. Apple offers above average pay, far outstripping the US minimum wage and beating clothes retailer Gap, but offering less than Lululemon, a yogo apparel chain.

Apple also offers strong benefits, important in the safety-net-free American economy, with health care, pensions, and discounts on stock purchases all provided to employees. 

The problem the employees have is that very little of the astonishingly high revenue per employee – comparable with sales in consulting, rather than retail, according to Asymco's Horace Dediu – is due to them. Apple is a hugely profitable company, which has more or less monopolised the high-end of at least three seperate consumer goods markets. It's as though BMW were not only the number one luxury car manufacturer, but also the number one motorbike and bicycle producer. As Slate's Matt Yglesias writes:

The converse of Apple Store workers not being rich despite the company's success is that Sears & K-Mart workers don't earn negative wages even though their company loses money.

Even if Apple wanted the best retail employees in the world, they would only have to pay a bit more than the company which is happy having the second best retail employees. And, judging by appearences, they don't. They are happy to have employees at much the same level as other high-end, but ultimately consumer-grade, companies.

And while they receive merely comparable relative incomes, the absolute income of an Apple Store employee is high enough that, as Yglesias adds, we should wish that everyone earns the same:

The really urgent question isn't why aren't Apple Store jobs better, but why are so many jobs worse than this?

Apple Store employees dance in Rome

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Grant Shapps on the campaign trail. Photo: Getty
Show Hide image

Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.