So Long, Suckers... (10/27/99)
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While we've been talking a lot about how Dell's copying Apple, it's worth noting that now Apple's copying Dell-- or at least that's what the rumors say. Not that a bit of Dell emulation is anything new to Steve and the gang. For the past several quarters, Steve has frequently trotted out Apple's astonishingly low inventory numbers, proudly pointing out that Apple now maintains even less inventory than Dell, who once led the industry in that area. And then there's the whole Apple Store thing-- build-to-order Macs configurable from the comfort of one's own web browser. That's unquestionably a page from Dell's book, even though Steve's NeXT engineers built Dell's online store before Apple assimilated NeXT.
Now, though, whispers of a new Apple sales paradigm are gathering strength. It was one thing for Apple to launch an online store, but the fact of the matter is that splitting sales between a direct-to-customer model and the standard retail channel isn't terribly effective. Apple's currently riding two horses, and the retail one's getting tired. Look at IBM, who's bailing on selling PCs at retail outlets because the price competition is killing them. Look at beleaguered Compaq-- 'nuff said. But then look at Dell, whose direct-sales-only model is making Compaq look like a dinosaur; they've got the sales figures to prove it. So rumor has it that Apple may be looking to put the pain of CompUSA and Sears (and Best Buy and everyone else who has undersold the Mac) behind them and more closely adopt Dell's strategy of selling computers straight to the people who want to buy them.
The interesting bit in all of this is, of course, what would happen to all of Apple's existing authorized resellers-- including small vendors who stuck with Apple through the Dark Days-- if such a move were to come to pass? Well, an "On The Register" article in MacWEEK has some intriguing ideas. For one thing, if Apple is going to succeed with a mostly- or all-Apple Store sales strategy, it's more than likely that the company would need a retail presence, even if they won't actually sell in retail stores. So at least some existing retailers might turn into "AppleCenters," similar to those Gateway Country stores that don't actually sell computers, but let you test-drive them and order them directly from Gateway. In addition, these AppleCenters could sell third-party software and peripherals that Apple wouldn't sell themselves. It's an interesting concept, though if Apple gives it a shot, you just know that existing retailers aren't going down without a fight. We'd anticipate a backlash with a rating of 7.7 on the Jobs scale. For reference, the "Blue Blocker" scandal generated a 6.6, "G4 Speed Dump" was a 7.2, and the Clone Wars peaked at 7.5. So if Apple really plans to prune most of its resellers in favor of a mostly direct-sales model, get ready to take cover...
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SceneLink (1873)
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| | The above scene was taken from the 10/27/99 episode: October 27, 1999: Dell's getting just a little bit too much like Apple, as our heroes are bumped into second place in educational sales. Meanwhile, Apple may be shifting most or all of its sales to the Apple Store-- where does that leave the resellers? And even though some pre-orders for iBooks haven't even been filled yet, some people are already talking about Next Year's Model...
Other scenes from that episode: 1872: We Don't Need No... (10/27/99) Ah-- the student has surpassed the master, grasshopper. We all know that for the last several months, Mike Dell's tacitly recanted his infamously catty comment about Apple ("If I were running the company, I'd shut it down and give the money back to the shareholders") by seemingly trying to make his company as much like Steve's as possible... 1874: Ask The Magic 8-Ball (10/27/99) Well, how about that... they're barely on the shelves, yet, and people are already talking about the Next Big Thing. Not a day after we wished for a Graphite iBook Special Edition, rumors have surfaced that the iBook rev...
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