Tuesday, February 13, 2007

Apple reseller blues

Local Apple reseller Total Recall Solutions has gone to the wall. This is a great shame as Adam ran the best Mac shop in the district. In my experience most of the Apple resellers around Sydney give service that ranges from mediocre to abysmal.

In fact, using the word "service" in the same sentence as "Apple reseller" makes me uneasy.

With the looming opening of the Sydney Apple Store many of these guys are going to find their business models under a lot of pressure. Ben Morgan, the proprietor of Sydney's biggest single Mac shop, has been less than enthusiastic about Apple's plans. Australia's biggest Apple reseller, Next Byte, is a bit more relaxed.

Next Byte will take a hit from the Apple Stores in their four Melbourne and Sydney city stores, but having stores all over Australia will cushion the overall blow. Academy's a bit more vulnerable, but their Eastern suburbs location makes them far more attractive to the cashed up locals who loathe travelling into town. I'd say both are probably pretty safe, unlike smaller stores.

The real question though, is who would be an Apple reseller? Charles Wright in his sadly defunct Melbourne Age column asked this question nearly five years ago. If anything matters have got worse since then for Apple resellers with declining margins, your main supplier opening stores to compete with you and not even being able to use the Apple name.

It's a tough industry flogging computer hardware. Apple certainly don't make it easier for their people.

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