Feeds

Apple dealer cull makes sense

Unwelcome distraction

  • alert
  • submit to reddit

3 Big data security analytics techniques

Opinion This article was first published in February 1999 Apple UK is terminating all reseller contracts at the end of February and dealers are up in arms. Particularly CJ Graphics, the Apple dealership with a £12 million turnover that went bust last month. The London Apple dealer is blaming its chief supplier, Apple, for the "forced disposal" of the company to rival dealership Rapid Group. CJ Graphics owner, Floral Street, sold the assets of the company for "up to £500,000" on 29 January, after its bank pulled the plug on all the company's financing facilities. AIM-listed Floral Street has ceased trading and is initiating insolvency procedures - the directors expect there to be a deficiency of net assets. Some financial engineer will pay good money for reversing a company or two into the shell that is now Floral Street. Aziz Punja, chief executive of CJ Graphics, said: "It is no secret that we experienced a downturn in business during the latter part of 1998. This, combined with mounting orders due to Apple's lack of product and the recent changes imposed by Apple, has really forced our hand." The buck clearly stops there, as far as CJ Graphics is concerned. Apple has struggled to keep up with UK demand for the iMac, its most popular launch, with many models on allocation throughout the fourth quarter last year. But how many other Apple UK dealers have gone bust recently because of product shortages or channel changes? Banks do not usually pull the plug for these reasons. Besides, CJ Graphics could have been reasonably certain that it would retain a direct relationship with Apple, post channel reorganisation. With five retail outlets nationwide, CJ Graphics looks less dependent on Apple than many of its rivals. The company also sells graphics arts materials and office furniture, as well as Apple kit. Its future now looks secure under the wing of the Rapid Group. What about the future of the remaining Apple dealers, who are now expected to apply for reaccreditation? The future doesn't look bright for low-volume dealers, who are already losing out in new volume breaks introduced by Apple disties Ingram Micro and Computer 2000. This could force smaller resellers to raise prices by up to eight per cent, which, as one source said, will mean they will lose out to low-price mail-order resellers. But is Apple behaving so outrageously? It wants minimum volume commitments of #60,000 a year from its dealers, which doesn't seem such an awful lot. It is also trying to impose minimum requirements for staff size and company standards. Apple appears to have concluded that it has too many dealers in the UK. And Apple would be right. Its direct sales operation, AppleStore, is already a fixture on the Mac scene and with a few choice third-party applications and add-ons, could represent a big threat to the mail-order guys. In this context, low-volume, low value-adding resellers are an irritating distraction. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.