Apple opened its first flagship San Francisco retail outlet last week in the city's tourist and shopper's magnet, Union Square.

Apple CEO Steve Jobs, city mayor Gavin Newsom and ex San Francisco mayor Willie Brown attended the event – which saw a 2,000-strong queue. Inside Mac Radio has posted a selection of photos taken at the opening.

The company offered customers attending the launch the chance to buy 'grab bags' of Apple products at $250 each. These bags contained a selection of products, including a wireless AirPort Extreme Base Station and card, Keynote, iLife 04, a year's free .Mac membership and a wireless Apple keyboard and mouse, as well as a Bluetooth card. Some bags also contained an iPod or iPod mini.

Inside Mac Radio is also offering an interview with Apple's senior vice president of retail, Ron Johnson. The Apple exec discussed the new store and Apple's retail plans worldwide.

In related news, VAR Business reports the plight of many US Apple resellers who claim they are losing business on account of Apple's aggressive retail plans.