Apple Increases Direct Approach

“Apple is moving more business to direct sales channels. Even though we still have a strong percentage of their channel sales, Apple&'s overall channel sales are lower compared with a year ago,” said Harry Harczak, executive vice president of marketing, purchasing and business development at CDW, Vernon Hills, Ill., during a conference call with analysts last week.

CDW&'s fourth-quarter Apple business declined.

The reseller owns MacWarehouse, an online retail arm it purchased two years ago to sell Apple-related products.

A distribution source who requested anonymity confirmed that Apple has moved some business away from the channel. Apple executives could not be reached for comment.

Other solution providers said they were not surprised by CDW&'s statements regarding Apple, Cupertino, Calif.

“Everybody talks about that. It&'s all about availability. If it&'s the newest products, say the Mactel products, Apple Stores get them first,” said Marcial Velez, president of Xperteks Computer Consultancy, New York. “Customers would never order from a reseller if it takes eight weeks to get the product. That&'s where the rub is. CDW doesn&'t have the availability either.”

One solution provider who requested anonymity said Apple also “encourages” solution providers to sell AppleCare service plans to customers, but then the vendor often uses the information to contact the end users. Jon Nitto, president of The RetroTechs, Atlanta, said his company protects itself though its services offerings. “Most of our clients are pretty loyal because we offer services even a CDW can&'t offer. The Apple Stores and CDW are not really our competition. I&'m not thrilled Apple Stores get product before we do, but I don&'t know if it affects sales,” he said.

Apple has said it expects product shipment delays for its new Intel-based Macs, due this quarter. During the analyst call last week, CDW&'s Harczak said there were “certain allocation issues from one key vendor due to product transition issues,” but he did not say if the vendor was Apple.

Xpertek&'s Velez wants Apple to have a more active voice with its channel partners. “They&'re not communicative. Every vendor communicates with us in one form or another,” he said. “I&'ve been an Apple reseller for two years, and an Apple rep has never called me.”