Merc: Apple preps Palo Alto store

Taking a page from Gateway's retail playbook, Apple Computer Inc. is preparing to set up shop with a bricks-and-mortar outlet in downtown Palo Alto, Calif., the San Jose Mercury News reported Thursday.

According to the story, the 6,500-square foot outlet, which will demonstrate and sell Apple computers and related products, will serve as a prototype for future Apple stores. Palo Alto city planners told reporter Truong Phuoc Khánh that Apple (aapl) has plans for two other stores in California (one of them in Glendale), and that the company was contemplating a simultaneous grand opening of all three outlets.

When contacted by ZDNet News, Apple spokeswoman Lynn Fox declined to comment on the report. -- ZDNet News staff