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Apple Launches Fifth Avenue Retail Store
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However, Apple’s retail expansion upset its channel partners as they thought
that the stylish ambience of Apple’s retail outlets would easily pull customers
away from their stores.
David Ash, president of MacSolutions Inc., a retailer of
Apple products in Los Angeles, said, “They’re (Apple) killing us.”[5]
The resellers
also accused Apple of favoring its own retail stores over as products like iPods
that were scarce in other retail channels were available in Apple stores.
Resellers alleged that Apple had taken an unfair advantage
by competing with them and several law suits were filed against Apple between
2002 to 2006 in Santa Clara County Superior Court in California. |
Talking about Apple’s decision of favoring a retail approach, Simon Yates, a
senior analyst at Forrester Research Inc., said, “The theory was that if
consumers could get their hands on the stuff, they’d be more likely to buy an
Apple than a Dell. That put them in conflict with a reseller channel.”[6]
Some resellers were upset that when Apple was not so popular and well-known,
they were the ones who had stood by the company. Joe Weingarten, an ex-Apple
dealer in Ohio, who had filed a law suit against Apple, said, “Within a few
years, all of the independent resellers will probably disappear as Apple extends
its storefront. When Apple was suffering, we were the ones who supported them.”[7]
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Continued... |
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[5] Nick
Wingfield, “How Apple’s Store Strategy Beat the Odds,” www.onlineWSJ.com,
May 17, 2006.
[6]
“Apple eats its own,” www.chicagobusiness.com, March 21, 2005.
[7] “Apple
eats its own,” www.chicagobusiness.com, March 21, 2005.
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