Fresh off its launch of iPhone sales, Apple Inc. intends to expand business in Hawai'i with plans for a store in Waikiki that would be the company's third retail outlet in the state.

Apple recently applied for a building permit to construct a store at Royal Hawaiian Shopping Center, which is slated to finish an $84 million renovation in December that is adding major new retailers and restaurants to Waikiki's largest mall.

The expansion plan would give the California-based manufacturer of Macintosh computers and other devices like the iPod media player perhaps its highest profile store in Hawai'i in a location visited by many of the state's 7 million annual visitors.

Apple launched its retail initiative in 2001 as a strategy to broaden its customer reach, and has built a chain of more than 180 company-owned stores typically located in high-traffic mall locations.

The venture delivered a $121 million profit to Apple in the six months up to March 31, according to a recent financial report from publicly traded Apple.

Stores on average took in $23.6 million in revenue during Apple's 2006 fiscal year, up from $11.5 million just three years earlier.

Independent businesses selling Apple products and services have said Apple's retail foray has hurt their business, though the long-term broader effect may be beneficial with Apple getting more products into hands of local consumers and businesses.

Apple opened its first Hawai'i store at Ala Moana Center in 2003. It followed with a store at Kahala Mall in February.

Amy Barney, an Apple spokeswoman, would not confirm plans for the Waikiki store, in line with Apple's secrecy for plans and new products.

Susan Todani, director of development and planning for mall owner Kamehameha Schools, declined comment.

According to its permit application, Apple plans to create a store in a two-story space fronting Kalakaua Avenue near The Cheesecake Factory at the mall's diamondhead end. Store improvements, the application estimates, are valued at $1 million, or more than Apple's Ala Moana or Kahala stores.

Apple in some markets, such as San Francisco, Chicago and Tokyo, has opened what the company calls "high profile" stores, some of which include glass stairways, theaters for product demonstrations and expanded "Genius Bars" for answering questions or fixing problems.

Regardless if Apple's planned Waikiki store will be such a flagship format, the addition will improve the Royal Hawaiian Shopping Center as an attraction.

"When you have consumers waiting 18 hours to buy a $600 product, that's pretty amazing," said local retail analyst Stephany Sofos, referring to lines to buy the first iPhones released last week. "Apple is one of the hottest retailers around."

An Apple store also diversifies the tenant mix for the mall, which is adding new tenants including well-known restaurant anchors, major retailers and entertainment attractions.

Among coming restaurant tenants are Señor Frog's, P.F. Chang's, South Beach, Fla.-based Doraku Sushi, an operation from New York-based Wolfgang's Steakhouse called W Steak, and a food court.

A flagship Hilo Hattie store will join new or renovated retailers including Hermes, Fendi, Cartier, Bvlgari, Crazy Shirts, Island Snow, Borders Express, Kate Spade and L'Occitane.

A Roy Tokujo theatrical production and nightclub Waikiki Nei is being developed on the mall's fourth level.

When completed, the 293,000-square-foot open-air mall will be 17,000 square feet bigger, with about 110 tenants.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.