European Apple resellers say lack of inventory is putting them out of business
Apple's network of authorized "Premium Resellers" across Europe have complained that they are no longer a priority since Apple began expanding its own retail locations.
The ongoing struggle was profiled this week by France's Les Echos ( Google Translate). It details a complaint filed last November by eBizcuss, the first authorized reseller of Apple France and the largest in the country, which saw its sales fall 22 percent in its third fiscal quarter of 2011.
eBizcuss has 200 employees and 15 stores, but it is said to be on the verge of bankruptcy. The Apple Premium Reseller has seen its stock price plummet 50 percent over the last year.
The report notes that one of the reseller locations at the Hotel de Ville in Paris is sparsely populated, with just six idle vendors. The store does not carry the iPhone, and employees tell visitors to visit the official Apple store at Rue de Rivoli.
But the Apple Store at the Carrousel du Louvre, which opened in 2009, was said to carry a "completely different atmosphere" when visited 15 minutes later, packed with customers and with plenty of iPhones and iPads in stock.
The report noted that Apple's own retail stores and their continued expansion have marginalized Apple Premium Resellers. That prompted eBizcuss to file an injunction against Apple and threaten to file a complaint of unfair competition to the Competition Authority in France.
Separately, a person who contacted AppleInsider to highlight issues experienced by Apple Premium Resellers claimed that resellers in Sweden and Germany are also about to go bankrupt. That person said they expect that Appel's resellers in the Netherlands will also be negatively affected when Apple opens its first Dutch store on Feb. 18.
Resellers have become a less important part of Apple's business as the company has grown its own retail presence since it launched in 2001. In the company's most recent quarterly earnings report, Apple officials revealed that its retail stores attracted 110 million people, and on average its stores see 22,000 visitors per week.
Though the bulk of Apple's retail locations are in the U.S., the company has been aggressively expanding its footprint internationally. Now, many of the company's most trafficked retail stores are located outside of the U.S.
Authorized resellers who spoke with Les Echos said there has been a chronic shortage of supply for product supply. They also say they are held to standards by Apple they simply cannot meet.
Apple audits its authorized resellers and sends in "mystery shoppers" to make sure everything is up to the company's standards. But French resellers have complained that the inspections are conducted by a British company rather than Apple's French marketing team.
"Ultimately the (Authorized Premium Resellers) have become stores dedicated to Mac, iPhone cases or with after-sale services," one unnamed manager was quoted as saying.
The report notes that while resellers are in the "twilight of a long love affair" that began in 1989, Apple plans to continue to expand its retail locations in France. While there are 9 stores currently located there, it indicated that Apple plans to open "dozens" of new stores in the coming years.
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Comments
not to worry, MS is looking for partners to open MS Premium Retail stores in europe
love,
SB
I won't touch the subject where they complain an English company is doing audits in the French stores ... Way too political!
Remember that France is one of the countries showing a decline of iPhone sales in Europe. Actually, France had the greatest drop in sales.
Of course, one could argue that the drop in sales occurred because the resellers weren't doing their job but if that's not the reason then Apple had best address the situation promptly.
Apple does have a ruthless side these days. Back in the dark days it was the resellers that kept Apple alive.
I've been an Apple customer since 1984, through thick and thin, good days and bad, and people like me kept the company afloat through its 'dark days'.
So does that mean that Apple should subsidize my purchases as well?
I've been an Apple customer since 1984, through thick and thin, good days and bad, and people like me kept the company afloat through its 'dark days'.
So does that mean that Apple should subsidize my purchases as well?
Actually, I like that idea!
They should be looking for alternate revenue streams because this issue will not get better for them.
I see it the same way.
In our personal investing, we are always advised to diversify and to not "have all your eggs in one basket". A business that relies solely on the products supplied by only one company seems foolish.
Apple does have a ruthless side these days. Back in the dark days it was the resellers that kept Apple alive.
I'm not sure I can agree with that. Apple did rely completely on resellers but that's because it didn't have internet sales or its own retail stores. There was really no other option. Frankly the retailers didn't do a great job (on the whole) of making Apple's product look desirable. They were often pushed to the back of the store to rot.
As for being ruthless that is part of any for profit company's DNA if they wish to survive. One of Jobs first commands upon returning as interim CEO of Apple was to end all Mac clones. This wasn't Apple being dick for dick's sake, but Apple trying to survive. Where they dick? From the cloner's PoV, most likely. Was Apple right? Absolutely!
Apple's network of authorized "Premium Resellers" across Europe have complained that they are no longer a priority since Apple began expanding its own retail locations.
Did Apple ever promise a reliable supply of product? Did Apple ever promise not to favor company owned stores?
These guys made a deal. And now they are having buyer's remorse. Apple makes a LOT more selling retail than they do giving wholesale prices to these rubes. I bet that they can buy as many iPhones as they want from Apple - at the Apple store. Grow up guys.
Apple does have a ruthless side these days. Back in the dark days it was the resellers that kept Apple alive.
I have tried to shop at an Authorized Apple Reseller since 1986 and every time I went in the shop for the past two and a half decades, I was treated like it was a privilege to be allowed in the store and have a person sell to me. It was the worst experience shopping so I turned to Apple's online store and was thrilled that Apple opened their own retail stores. I love the Apple experience and hope these greedy resellers go under as soon as possible.
"The store does not carry the iPhone, and employees tell visitors to visit the official Apple store at Rue de Rivoli.
Does that mean they choose not to carry the iPhone? or they are not allowed by Apple to carry the iPhone? or they are not equipment to sell iPhones (activation, etc)? or they just don't want to be bothered with the process involved in selling an iPhone? or they are not authorized but the cellular carrier?
It would seem to me that if you had a choice and you elected not to carry what could be called the flagship product - or the very least the product with the single highest "buzz" around it - then you are in effect buying a gun, buying bullets, shooting yourself in the foot, waiting for a bit while you bleed out, then instead of calling an ambulance, calling the media to show them what a terrible thing Apple has done to you.
1. Do non-Apple stores provide the quality experience for customers that Apple has found is fundamental to their success?
2. Is the problem for non-Apple stores lack of inventory or lack of sales that can draw inventory? Cause and effect are open issues.
Finally, assuming Apple stocked these stores would it have a material advance in overall sales or are customers expecting Apple Stores in France, my bet the latter will drive sales and happy customes.
I, I was treated like it was a privilege to be allowed in the store and have a person sell to me.
In some high-end electronics stores, you need to make an appointment to talk to somebody. Was it as bad as that?
If Apple has the same price, more or better service options, and garanteed stock - why would I want to consider an Apple re-seller?
As a consumer, I would definitely walk into an Apple Retail Store as compared to a Reseller. In fact, in the country where I currently reside in, there is no Apple Retail Store thus I shun away from those Authorized Resellers cause their service is average to poor, the entire experience at the store is so disappointing, and many more other factors that now I ONLY PURCHASE direct from Apple Online Store. After all, there is more to gain than lose. Courier direct to my doorsteps FREE. No hassle return or exchange should there be any issue with the package, just a phone call and someone will come to pick it up or exchange with new one.
Resellers are mostly alike - blame others but themselves for their failures to innovate and compete in the overall retail operations and end-user experience.
Looking at Apple Sales in Europe - Suggest Apple on Right Track
Huh??
Market share and sales of the iPhone are declining in Europe.
I wouldn't say that is the right track.