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  • Another Apple Reseller Forced to Close


    Ever since the release of the original iPhone in 2007, Apple has been steadily growing in the tech industry. Along with the success of its products came the success of its retail stores which sell them. Unfortunately for those who sold Apple products before the retail stores came along, this fact remains as bad news. This month, Arizonaís iStore owner, Steve Walker, told its patrons the following message on its website:

    We had a lot of fun over the years working so closely with the Apple product and loyal Apple product users. Unfortunately, since the introduction of the Apple Corporate Stores in 2001, dealers have continually struggled with fair inventory allocation by Apple along with a horribly uneven playing field in relation to the independentís ability to service our customers in the same way the Apple Stores are able to provide service. As an example, Apple will swap iPhones, iPads, iPods and oftentimes Macs that are not functioning properly, but do not provide the ability for Independentís to offer the same level of service. These problems existed even though iStore has consistently met all metrics as measured by Apple to be a distinguished and high-performing Apple Specialist and AppleCare Premium Service Provider. For these reasons and others, I have made the tough choice to close our stores.
    Additionally, the following note is also up on the companyís website:

    We have enjoyed assisting you with all your Apple needs over the past 17 years here in Arizona. I feel blessed to have been able to provide for my family while being entangled in all the cool Apple products. Over the years, I have had the privilege of working with some of the most talented Apple people around Ė those who have helped you with everything from your complex issues to your simple problems or helped you figure out exactly which Mac, iPod or iPad was right for you.

    With the gradual opening of what is now 5 corporate Apple Stores here in the Phoenix area and corresponding changes at Apple with their reseller relations, Apple has made it nearly impossible to sustain profitability while providing great customer service. As many of you have experienced (most recently with the 3rd Gen iPad), Apple consistently withholds product from their independent dealers while providing abundantly to their own corporate Apple Stores. For this reason and many others that would take too long to enumerate and, quite frankly, you probably donít care about, we have chosen to permanently close our stores.

    As is the case with all businesses, we have made our fair share of mistakes. We could have done better at many things. If you were ever caught in the crossfire of those situations, I hope you were made whole by us (except the crazy ones like that guy that expected us to give him a refund for a product he purchased at our competitorís store).
    I thank you for your kindness, tolerance, patience, humanity, business and friendship over the years.

    Sincerely,
    Steve Walker
    President
    iStore
    The success of the Apple retail stores doesnít have as much of an effect of popular retail chains such as Best Buy, Target, and WalMart as these stores also began to sell Apple products but those who werenít as big took a huge hit. This leaves many to question whether or not Apple should show some sympathy for those who supported them long before the Cupertino California companyís rise to glory.

    Source: iStore
    This article was originally published in forum thread: Another Apple Reseller Forced to Close started by Akshay Masand View original post
    Comments 10 Comments
    1. trevorrawson's Avatar
      trevorrawson -
      What I love about the independent stores is their much bigger inventory of accessories. The apple store near me has zero accessories for the iPad except for their smart cover. However the local independent store had the DodoCase, BookBook and all the other cool items right there to pick up and look at. It's sad really...
    1. H4CK3R's Avatar
      H4CK3R -
      Wonder what Apple will say about this....
    1. hank197857's Avatar
      hank197857 -
      the rich get richer. it is written. i wonder if apple remembers how it felt when it nearly went bankrupt.
    1. ZipZapp's Avatar
      ZipZapp -
      This is disgraceful treatment of those independent resellers that kept Apple afloat for all those years. I, for one, am very disappointed in Apple.

      Sad to say, Apple will not respond to this as it still has resellers in many areas where there are no Apple stores. I would hope that iStore considered moving to a new location/state where they could once again be competative.
    1. exNavy's Avatar
      exNavy -
      Drove by the one in Mesa the other day and I thought it looked like it was closed. That's a shame, it was just a couple blocks away. That store threw me for a loop when I first saw it as it looked like an apple store from the outside. I liked the big selection of items they had in stock. Plenty of display models to spend lots of time on. These stores never had any one in them which I liked. I could get in and out instead of having to FIGHT for attention in my way overcrowded apple stores.
    1. quidam_brujah's Avatar
      quidam_brujah -
      Quote Originally Posted by exNavy View Post
      These stores never had any one in them which I liked. I could get in and out instead of having to FIGHT for attention in my way overcrowded apple stores.
      I think we know why they're shutting down.

      But, seriously, typically any kind of company that has a distribution channel that uses partners will protect those partners margins by not trying to compete with them through price, or service. Small partners, like the ones mentioned here, are the ones that are going to take the biggest hit when that manufacturer decides to get into that brick-and-mortar option. Bigger partners, like a Best Buy, future shop, etc., are more diversified and won't take as big hit.
    1. rudyy50's Avatar
      rudyy50 -
      Don't think for one minute that Apple's policy doesn't affect big box stores. A pal of mine runs one and says the store sometimes gets one iPhone or iPad. He's then accused of selling the nonexistent stock to employees or favorites before the public has a chance to buy it.
    1. steve-z17's Avatar
      steve-z17 -
      It's a tuff economy, especially when Apple is growing like crazy!
    1. Glocknine's Avatar
      Glocknine -
      Soon apple will code their own apps for ios devices and will kick every non-apple apps out itunes store
    1. MacOSG's Avatar
      MacOSG -
      It's called 'Apple Greed.'