Steve Jobs has undoubtedly, done a great job of turning Apple around. From a company that almost slipped into oblivion, it has come a long way since the re-introduction of the first multi-coloured iMac. Through it all, Apple has been served for years by loyal resellers that braved the storm together with the company. Through good and bad times but with the rise of Apple Stores mushrooming like toadstools after a shower all over the globe, the Apple onslaught seems to have just entered Phase One. Shrinking margins and other reseller limitations plague neighbourhood mac stores and long running mac loyalist who have given their lives to perpetuating the mac empire. Just as Apple seems set to start its path to dominion, they seem to face uncertain extinction.
“The fate of these and other Apple partners begs an interesting question: At a time when Apple is on the rise, why are the Apple businesses of so many Apple partners falling down? The answer, some believe, is a master plan by Apple to control as much of the Apple market as possible. That includes everything from where customers large and small buy products, their experiences with the Apple brand, how they are serviced and the types of solutions they eventually deploy.”
– T.C. Doyle VARBusiness
One of Apple’s most outspoken critics, MACadam Computers owner Tom Santos estimates he has sold 25,000 Macintoshes on behalf of Apple in 15 years. Though no longer authorized, Santos still supports Macs while simultaneously suing Apple.
Reseller conflict is not new to Apple. With sites like TellOnApple.org dedicated to exposing the unethical business practices of Apple floating on the Internet, the pain seems only too real.
As mentioned before, Apple is renown foremost as a marketing company first, and a computer manufacturer second. Is Apple repeating its mistakes from back in the day when it absolutely refused to license manufacture of its hardware to third party vendors?
Sure, we are all benefitting from this decision. We have macs that work great because the people making the hardware also make the accompanying software. Glueing together a very convincing package but in a world of ‘live and let live’ where should a computer behemoth like Apple draw the line between good business sense and good old appreciation for the Little People who helped develop the market that they now share. Suddenly, the motley crue of loyal mac resellers seem to have become the enemy.
“In three years, Apple has opened enough retail stores so that half of America lives within 15 minutes of one of them.”
-T.C. Doyle, VARBusiness
To use the term ‘channel conflict’ merely belittles the rising tension between resellers and Apple. Marketing and Business students all over the globe must be having a field day tearing this business model apart in vain attempts to summarise the situation and predict the eventual outcome. Like a romantic love-hate relationship, the remaining Apple resellers undoubtedly know that they’re hour is coming and it wouldn’t be surprising to see more and more resellers packing in sales to make a quick get away when their moment catches up with them. Possibly at the cost of consumer confidence, not every individual responds well to ‘fire and forget’ marketing. Predictions of new mac-centric businesses rising from the aftermath should Steve succeed in superseding the existing resellers and switching the globe to loyal mac followers would hardly be surprising.
As consumers, our concerns will shift from loving the wonderful gadgets that Apple makes to colour our lives, to wondering whether the neighbourhood mac store we love so much will still be there to answer our queries and show us how the latest Apple product works. We have not secured any personal interviews but its a wonder why Apple doesn’t consider working in unison with the parties who helped them retain their poise in the industry? Its wishful thinking but wouldn’t it be nice if a compromise can be reached where existing resellers can become Apple Stores and work out some form of management agreement where they can continue to co-exist with Apple’s plans of domination, marching to the tune of ‘Imagine‘ by John Lennon.
Read the full article at: Inside the Channel’s Battle With Apple, T.C. Doyle. VARBusiness
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