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Change may hurt Australian Apple suppliers

updated 07:20 pm EST, Tue January 29, 2008

Aussie Apple change

A contract changed enacted by Apple may have a negative effect on Apple resellers in Australia and New Zealand. The shift would allow retailers to "multi source" Apple products, which means they could buy in tandem from suppliers and Apple. The Sydney Morning Herald reports that Renaissance Corp is expecting the sales volume and profit from its Apple distribution business to fall following signing of the new contract. Changes to suppliers' margin structure will also be phased in between now and October.

"While the timing and quantum of these changes are not easy to predict, we expect the sales volume and profit achieved by Renaissance from our Apple distribution business will fall," said Renaissance officials.

The company says recent supply restrictions of computer products -- mainly iMac and Apple portables -- have also put a damper on overall sales and profitability. This despite record demand for Macs in the past year.

Still, suppliers see potential for growth. "(We see) prospects for domestic and international growth in our education activities," said Renaissance. The supplier will finish with a net profit before tax of about $NZ5 million ($A4.38 million) to $NZ5.5 million ($A4.82 million) range previously indicated.




by MacNN Staff

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Comments

  1. Guest

    Joined: Dec 1969

    0

    Yes bring it on!

    I hope this is correct we are sick of paying 25% more than in the States. Suffering from terrible service and supply lines. The local resellers will jump for joy and Macs should be much more competitively priced in NZ at least because of this.

  1. testudo

    Joined: Dec 1969

    0

    Re: bring it on

    I don't see how this is going to help the prices. You could buy directly from Apple (can't you?), and its still 25% more expensive then the US.

    This is just that the retailers can get their overpriced stock from Apple, rather than a Supplier.

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