Is Apple Favouring it's Online Store purchases over it's channel partners?

[Platypus]

A similar story to a lot of you here...

I bought an iMac 27" i7 from Myers on the 24th November, 2009. The Myers representative, after calling their Apple representative, told me that there would be a 2-3 week wait.

Apple's online store, at the time indicated a 14 day delay, or thereabouts.

After calling Myers today I was told that now I will have to wait until the end of January, middle of February 2010.

But I know of cases of people who have ordered the same model via Apple's online store AFTER myself, and have now got it.

So it would seem that Apple prioritises people who have placed an order for the same product via their online store over people that have bought through the channel (Myers, JB Hifi, DJs, etc).

WHICH IF CORRECT, IS WRONG! It's certainly anti-competative...

I have lodged a complaint on ACCC's website. I would HIGHLY ADVISE that you do the same, if you are "in the same boat".

The ACCC can only act if they get enough complaints / see a pattern of behaviour.

The general URL is for loding complaints is: Complaints and inquiries

The URL for the electronic complaint form is: Create New Complaint

Cheers

[eds3028]

is it not reasonable to assume that the delay is due to apples decision to stop shipping iMacs until it figures out what is wrong with them?

hxxp://www.appleinsider.com/articles/09/12/14/apple_responds_to_apologizes_for_imac_shipment_del ays.html

[glitch]

is it not reasonable to assume that the delay is due to apples decision to stop shipping iMacs until it figures out what is wrong with them?

hxxp://www.appleinsider.com/articles/09/12/14/apple_responds_to_apologizes_for_imac_shipment_del ays.html

No, thats not reasonable. Its not what is happening, as posted Apple are giving preference to Online & Apple store sales and refusing to supply any Quad Core iMacs to resellers.

Though I cant see the point in contacting the ACCC, its not illegal or anti competitive, its just typical Apple, the large corporate, showing total disdain for its retailers and customers.

[bennyling]

Short answer: yes, it is.

And it has done so for a very long time, and there's nothing you can do about it.

[melbmac]

I was going to say, hasn't this always been the case (and not only with Apple).

Good luck getting anywhere with it.

[chrissara]

As has been repeatedly posted before - Apple have done this before and it is nothing new.

Apple have made it ABUNDANTLY clear to resellers at conferences that preference has and always will be to their own online store and Apple Stores.

Yes it does leave a sour taste in the mouth that "first in, best dressed" doesn't apply and the current 27" iMac saga highlights this.

It is not anti-competitive, just unreasonable in the public's eye.

Perhaps the question you should be asking is why your reseller did not inform you that Apple's own sales take priority over their own. Usually most resellers will not advise you of this, as in most cases, there is little or no delay in reseller orders coming through. However as stated above the current issues with the 27" iMac have highlighted this particular practice of Apple.

There is truth to the QA issue of the 27" iMac which did lead to Apple pulling up or slowing down the sales of the 27" iMac (demand also was unexpected).

So we have a combination of factors slowing down even Apple's own online sales, coupled with their known policy of Apple online sales over resellers causing the current stink.

Savvy people will notice that since the delays have occurred, the occurrence of issues with the 27" Imacs has decreased. So the prospect of receiving yours after Christmas should in some ways be viewed as a blessing.

[IIe2PB]

Savvy people will notice that since the delays have occurred, the occurrence of issues with the 27" Imacs has decreased. So the prospect of receiving yours after Christmas should in some ways be viewed as a blessing.

This is exactly why I'm not stressing it

[Phunky]

I reckon that if this happened with Dell or another PC manufacturer you guys would be all over them giving them sh*t
But since its Apple, the delays must be a 'good thing' lol. Apparently they really can do no wrong
By the time the supply constraint eases and they fix the bugs, people will be asking whens the next refresh

Perhaps the question you should be asking is why your reseller did not inform you that Apple's own sales take priority over their own. Usually most resellers will not advise you of this

So its not the supplier's fault, but rather the reseller's fault for not telling you to go buy it direct from the supplier?

[chrissara]

I reckon that if this happened with Dell or another PC manufacturer you guys would be all over them giving them sh*t
But since its Apple, the delays must be a 'good thing' lol. Apparently they really can do no wrong
By the time the supply constraint eases and they fix the bugs, people will be asking whens the next refresh



So its not the supplier's fault, but rather the reseller's fault for not telling you to go buy it direct from the supplier?

No - the reseller should inform the buyer that the have the option of buying directly from Apple and potentially receiving their order quicker.

I too ordered my iMac from a reseller in late October 2009 and still haven't received the iMac - I am sticking to my guns and not ordered online as I do not appreciate Apple's policy. The only aspect that provides me some comfort is the possible if receiving an iMac that has no issues.

[Platypus]

Welcome to Australia...

We complain about climate change... We complain about the price of petrol... We complain about interest rates rising... We complain about Telstra... We complain about Apple... We complain about the NSW government

But we NEVER do anything about it... We don't switch banks. We don't switch from Telstra. We don't riot/demonstrate in the streets to change government.

We just complain, and complain and complain....

Nuhhhh... I can't be bothered to click on the URL and spend 30 seconds filling in the form to register my complaint about Apple with the ACCC.

But I can be bothered to spend 30 seconds or more replying to this thread. Or offering an opion on a point of law as to whether Apple has contravened the TPA. Or yet another Mac vs PC pointless point.

Welcome to Australia....

(For the record I have had a very successful case/action against a massive multi-national electronics company with ACCC.)

[glitch]

blah, blah, blah...

But I can be bothered to spend 30 seconds or more replying to this thread. Or offering an opion on a point of law as to whether Apple has contravened the TPA. Or yet another Mac vs PC pointless point.

I dont believe Apple have contravened the TPA nor have they done anything that would attract the attention of the ACCC.

What they have done is just typical for a large multinational corporate, particularly one that has no structural separation of its wholesale and retail operation.

Apple have long treated resellers and their customers with contempt, despite the fact that their presence in Australia was due solely to the efforts of resellers in this country for many years.

There would be nothing in the iMac fiasco that would surprise those with good memories and long term mac users, the lies and preferential treatment are par for the course when they have supply constraint issues.

In the end most of us continue to choose to use Apple products in spite of the lack of Apple's business ethics because they do still make the best gear!

[decryption]

I dont believe Apple have contravened the TPA nor have they done anything that would attract the attention of the ACCC.

What they have done is just typical for a large multinational corporate, particularly one that has no structural separation of its wholesale and retail operation.

Apple have long treated resellers and their customers with contempt, despite the fact that their presence in Australia was due solely to the efforts of resellers in this country for many years.

There would be nothing in the iMac fiasco that would surprise those with good memories and long term mac users, the lies and preferential treatment are par for the course when they have supply constraint issues.

In the end most of us continue to choose to use Apple products in spite of the lack of Apple's business ethics because they do still make the best gear!

I may as well close the thread - this post is all that is required and any further posts will just be extraneous, wrong or a highly visible and sad demonstration of the impact of foetal alcohol syndrome.

[TheKeddi]

If you don't want to wait suck it up and cancel your order and order it online.

I would never order something apple from a reseller, I get much better service from Apple online even if you don't always get a discount.

Spend ya pennies and get ya service!

[lavo]

One thing to ask is the Apple online store part of Apple Australia or is it run by Apple in the US? The reason I ask is that Apple Australia is an entirely different entity to their US counterparts, and chances are the online store stock is separate from what Apple Australia hold in their warehouses. Apple Australia run very lean at the end of each quarter, so resellers who haven't stocked up for the Christmas rush have only themselves to blame. And if they work on JIT principle for stock, what did Myer expect at this time of year!!

Gee...its not as if it has been any different since I stopped working for a reseller 6 years ago

[velocite]

I ordered Nov 26, 2009 at 06:36 PM PST from Apple Store Online
iMac was delivered on Dec 14th at 10am wit TNT

[glacierdave]

The issues goes deeper than just resellers vs. Apple-direct sales. You also need to remember that Australia is a tiny market (California is a bigger market than Australia).

It's not just Apple, I've seen the same thing from many other manufacturers who also have a direct model in parallel to their channel model.

Obtaining stock is a huge issue for most of the major brands of computer - from a retailer perspective, anyway.

First, if another market (say, the US) has a product in high demand, the head office (not in Aus) may take all of the Aus stock and send it to that market instead. Or they'll take the Aus allocation and send only 10% of it to Aus and the rest elsewhere.

So, that's the first hurdle.

Second hurdle is that the manufacturer (in Aus) will have deals going that will result in them getting stock in preference to others (be that direct from manufacturer or a particular channel partner). Some of these deals are done direct with the manufacturer and by-pass distribution channels.

Finally, if the stock gets through to the distributors they're now having to figure out how to decide who gets what little stock is available in comparison to orders - again, special deals with the disti matter here - particular resellers will get stock while others miss out.

As a reseller it can be incredibly frustrating.

Part of the problem is that you never really know which model of which brand is going to have this issue. One quarter it might be a particular price point in one brand and the next quarter it's something different.

In my experience, EVERY manufacturer that has direct and channel strategies favours their direct market over the channel. Even then, just taking direct model - the manufacturer will favour certain customers over others. Welcome to life.

[Japester]

If you don't want to wait suck it up and cancel your order and order it online.

I would never order something apple from a reseller, I get much better service from Apple online even if you don't always get a discount.

Spend ya pennies and get ya service!

Now that we have both an Australia-wide online Apple Store and select areas have Apple retail Stores, I can't see the point in ordering from another supplier. Availability of Apple products, as long as you go through Apple, has never been better!

[cheater]

I just got bit by Apple's sordid treatment of orders placed via the reseller channel.

I'm US-based and the day after our Thanksgiving holiday in November is typically the largest shopping day of the entire year. It's called Black Friday because the sales figures on this one day often determine whether a company ends its year in the red or in the black. Most companies offer extra discounts on Black Friday, as both Apple and the reseller I used did this year.

On 11/27, at 7:30 AM EST, I ordered an i7 iMac 8GB from an Apple authorized reseller in California, paying by credit card. The reseller has shown me that they transmitted the order to Apple four minutes later. Initially the reseller indicated they would receive my unit on 12/4, which in a few days slipped to 12/14, and then a week or so later to 12/28.

I am aware of a buyer who placed an order for an i7 iMac via Apple's online store on 12/9 and he received it today, 12/18.

(My reseller has indicated they now expect to receive the unit over the weekend but that it won't ship out to me until Monday or Tuesday, so I estimate I will receive it either Wednesday 12/23 or Monday 12/28.)

Therefore Apple moved a subsequent iMac order received via their store ahead of a confirmed, paid reseller's order placed 12 days earlier. That is inexcusable IMO, especially on a box that is supposedly BTO.

My problem with this is that while Apple may have made it clear to their resellers that their orders will receive low priority, Apple has not told ME (their customer) that this is the case. Apple is recommending the reseller I used on their own website without admitting that their intentional policies cripple that company from providing equivalent delivery times and that's not right.

Why did I buy from a reseller? Both Apple and the reseller were offering basically the same US$100 off price on 11/27. But the reseller's 4GB upgrade was US$85 cheaper plus the US tax codes are such that I would not have to pay 7% sales tax (on a US$2,300+ purchase) on the reseller purchase and if I bought from Apple (online or otherwise), the 7% tax would have been levied.

Had I known upfront that buying from a reseller would as a direct result of Apple's idiotic policies cause it to take three times longer to receive the product, the decision as to what channel to use may have been different.

Apple should either close the reseller channel or be open regarding their policies of prioritizing reseller orders versus their own internal orders.

[drzeus]

Apple should either close the reseller channel or be open regarding their policies of prioritizing reseller orders versus their own internal orders.

Agree. Apple in it's typical arrogance screws the poor resellers and their own customers and not in isolated cases but in widespread deliberate business practises.

Myself like MANY others, cancelled our reseller orders that we waited for weeks, ordered from Apple and had the machines within 7 days from order. Pretty remarkable when Apple was feeding lies to the resellers about parts shortages.

While what they are doing is technically legal it is no doubt completely immoral. It's the same as Telstra wholesaling its ADSL to other companies yet saying to customers that if you purchase from us we will hook you up in a day whereas if you go to our competitor you will have 3 months wait....if that was happening the ACCC would be all over it as anticompetitive, yet Apple flies under the radar..