Issue: Unmanaged Conflict Can Kill Momentum

Apple is facing a set of tough decisions. Check out the Business Week article about Apple's channel conflict, "Apple, Respect Your Resellers." It opened company-owned retail stores that are conflicting with small retail Apple resellers. Critics of the move predicted that Apple stores would be a failure. Now that they are profitable, critics contend that it is hurting small resellers. Several small resellers in California have sued Apple. One has closed his five store chain.

What should Apple do? Closing its profitable, popular stores to be pure channel is not the answer. Neither is hamstringing its stores to provide inferior service so small resellers can compete. If Apple is serious about growing its market share, it has to have stronger company stores. However, that does not mean that it has to abandon the channel as a whole. It can still have a viable relationship with individual channel members. Heck, if Dell can work with some channel partners, surely Apple can too.

Scott Karren, The Channel Pro

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