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.

Photo: Getty
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Who will win in Manchester Gorton?

Will Labour lose in Manchester Gorton?

The death of Gerald Kaufman will trigger a by-election in his Manchester Gorton seat, which has been Labour-held since 1935.

Coming so soon after the disappointing results in Copeland – where the seat was lost to the Tories – and Stoke – where the party lost vote share – some overly excitable commentators are talking up the possibility of an upset in the Manchester seat.

But Gorton is very different to Stoke-on-Trent and to Copeland. The Labour lead is 56 points, compared to 16.5 points in Stoke-on-Trent and 6.5 points in Copeland. (As I’ve written before and will doubtless write again, it’s much more instructive to talk about vote share rather than vote numbers in British elections. Most of the country tends to vote in the same way even if they vote at different volumes.)

That 47 per cent of the seat's residents come from a non-white background and that the Labour party holds every council seat in the constituency only adds to the party's strong position here. 

But that doesn’t mean that there is no interest to be had in the contest at all. That the seat voted heavily to remain in the European Union – around 65 per cent according to Chris Hanretty’s estimates – will provide a glimmer of hope to the Liberal Democrats that they can finish a strong second, as they did consistently from 1992 to 2010, before slumping to fifth in 2015.

How they do in second place will inform how jittery Labour MPs with smaller majorities and a history of Liberal Democrat activity are about Labour’s embrace of Brexit.

They also have a narrow chance of becoming competitive should Labour’s selection turn acrimonious. The seat has been in special measures since 2004, which means the selection will be run by the party’s national executive committee, though several local candidates are tipped to run, with Afzal Khan,  a local MEP, and Julie Reid, a local councillor, both expected to run for the vacant seats.

It’s highly unlikely but if the selection occurs in a way that irritates the local party or provokes serious local in-fighting, you can just about see how the Liberal Democrats give everyone a surprise. But it’s about as likely as the United States men landing on Mars any time soon – plausible, but far-fetched. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.