yARN: Rotten Apple?
- 06 July, 2009 15:26
- Comments 5
Reseller outrage was expected. But, surprisingly, it never came.
As Apple's local arm moved to sell unlocked iPhones exclusively online and through its retail stores, you would have thought there would be at least one Apple reseller up in arms at missing out on business.
The first indications of Apple selling the iPhone began in May when the US online store started offering it to customers willing to get an AT&T contract. An Australian Apple representative said it was not pushing the popular smartphone online at the time, instead pointing to its telco partners and self-branded retail outlets.
But last week, after the launch of the iPhone 3GS, Apple changed its tune and started providing unlocked devices through its Australian store. Clearly, it's a move which may have an adverse effect on its indirect sales channel.
ARN tried to determine the impact of this news on Apple resellers, which had been excluded from a potentially lucrative opportunity, and anticipated a noisy and angry reaction from the vendor's resellers. Well, we at least thought some of them would have been peeved enough to talk. After all, if Apple has the capacity to sell unlocked iPhones by itself, why not make the device available to the rest of its sales channel?
It's certainly a question I would be asking the powers that be at Apple.
But on the contrary, most resellers were reluctant to speak out against the organisation. Questions were dodged with a hasty "no comment" followed by a prompt phone hang-up.
Finally, one Apple reseller, while not wishing to be named, did agree to speak with ARN about the situation. Six hours later, I received an email from the managing director which said he could not comment. Upon further questioning, it was revealed that he received a phone call from the vendor, instructing him to stay out of the issue. It's a classic Apple tactic - hyper-controlling all comment to the media.
In these tough economic times, many companies are opting to nurture their channel base and maintain a mutually beneficial relationship. Apple is taking the opposite route, making decisions that erode its partner relations bit by bit.
With the iPhone's popularity showing no signs of abating, resellers may still see a glossy Apple. Perhaps there are no hard feelings between partners and vendor, but how many times can they get messed around? Because no matter how pretty the fruit is, the rotten core always leaves a nasty taste.
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Comments
Anonymous
I feel really sorry for Apple resellers.
Bonester
Outraged reseller #1?
Apple is really good at screwing over their resellers with lousy margins, lack of information on new product releases, non-responsiveness to questions and this is the latest slap in the face.
My main business is in telephone systems and for the small reseller I think selling mobiles is a mugs game anyway. As a Telstra reseller, a customer can go into a Telstra shop and get a better deal than I can offer them anyway.
Anonymous
Apple do not want resellers
I have worked for an Apple reseller and I can tell you Apple screw them daily.
They seem to be able to supply there own shops but the resellers cant even get a simple computer most times, I have rang George St and been told they have stock of a computer model when the guys around the corner from me cant get any or only a few here and there.
This has happened every new model change this year.
Come on see it for what it is, Apple don't want reseller left in Australia, What a great way to take there business bit by bit,
Make every one that wants a unlocked phone go in to there stores.
They will open there own shops next door, down the road what ever it takes to get rid of them,
They will be in every city and in as many shopping centres that fit there model, if that means putting resellers out of business, so be is Apple's Motto,, I bet not one Apple staff member world wide lose sleep over the poor old resellers that helped Apple for many years.
RIP Australian Resellers. We feel your pain.
Anonymous
Seems logical that Apple would put the unlocked iPhone out to the reseller community via Brightpoint Online and Express Online. Instead they sell it themselves through Apple Stores and Online. Come on Apple, don't be greedy and pass it on to the reseller community.
Tom
Re: Apple do not want resellers
Apple are legally obligated to support their stores, so the business they put through the reseller channel will always be governed by this ..... which means low margins to work with and/or limited access to products. Combine that with their reluctance to deal with the "little guys" through their reseller application process & there is very little incentive to sell Apple.
I do pretty well selling Apple products only because I import. I did try to do the right thing by signing up as a reseller but after being given a complete run-around as to whether my application was successful or not, & then finding out it was rejected because I'm a "little guy" (which I find ironic considering Apple started in a garage), I thought "stuff them" & went back to importing. Until someone at Apple sorts out the local reseller model as it should be, you're better off flogging Dell/HP/Lenovo & Samsung for the phones. I reckon the Omnia is better anyway!
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