Change may hurt Australian Apple suppliers

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.

Filed under: Apple
Other story tags: retail, business, Australia, distribution