Ziff Davis Internet
News & Resources for the IT Reseller
NewsReviewsTech AnalysisCommentarySecurityLinux/Unix
My Account |  

Mac Retailers’ Reactions to Intel Move Are Mixed
By Daniel Drew Turner


Apple’s announcement that it will migrate its Macintosh line of computers away from the PowerPC architecture in favor of CPUs from Intel came as a surprise, not just to fans and developers, but to retailers, who have long carried the Mac torch as Apple’s market share declined in the 1990s. Though there are concerns about potential loss of hardware sales, some retailers have reacted hopefully.

“Our reaction to the news was upbeat,” said Kevin Anderson, President and CEO of Computer Stores NW (now The Mac Store), which runs six retail stores in the U.S. Northwest, and PowerMax, a mail-order division that sells only Apple products.

ADVERTISEMENT

“When you start examining all the advantages that will come about as a result of this move, there is a lot of reason to be optimistic,” Anderson said.

“It’s extremely positive,” agreed William Neyman, who sells integrated, high-end video systems based on Apple Computer Inc. products at the Gaithersburg, Md. store Mac Business Solutions Inc.

Neyman expressed more faith in the Intel roadmap than in potential advances in the PowerPC line.

“For a long time,” he said, “Apple has had to engineer its way out of not being able to get clock speed up, and they haven’t been able to get their most powerful chips into laptops.” Because of the Intel switch, Neyman said, “We think that within a year or two, we will see a doubling in clock speed.”

“The main negative issue,” Anderson said, “is consumer perception. They need to understand that for the most part this will not affect the user experience, and that there’s no more reason to wait for it to happen to buy a new Mac than there has ever been. Technology always gets faster and cheaper, and you have to jump on the train when you’re ready for an upgrade or ready to switch.”

“There’s always going to be a faster computer next year,” Neyman said.

Neyman added, “I would be very surprised to see a downturn in [Apple hardware] sales.” He said he expects at least one more Power Mac revision based on the G5 within the next year, and he said he thinks sales numbers will depend on how enticing this model will be.

“Our policy is not to tell people what to do,” he said. “We always sell what people need now.” Neyman said Apple might even see a bump in sales of the next Power Mac G5 “from people who are unsure of the Intel news.” Or, he added, from collectors looking for the last PowerPC Mac.

PointerClick here to read more about VARs’ reactions to Apple’s switch to Intel processors.

However, Anderson said, Apple could see a slowdown in hardware sales.

“The size of the hit will depend on the awareness all consumers, both retail and corporate, end up with as to the actual facts,” Anderson said. “I think there is cause to be concerned if there isn’t enough ground-level information, as well as marketing, to make people fully understand. It’s a tough message though, as it can’t really be a five-second sound bite.”

Anderson said he had received no product roadmap or information about plans from Apple, so he was left only to speculate on future hardware. “Marketing materials from Apple might help … that a consumer might read,” he said, “but I think for the most part it needs to be a ground-level dissemination of information.”

Not all retailers are so happy about the situation. One large Midwestern retailer, who asked not to be identified, said he was “in a bit of shock.” His business had to deal with two Apple stores opening nearby in the last three years, already taking Mac sales away.

“I think we retailers need a lot more information about this transition before we know how to react to it,” he said. “What we haven’t heard about is how we are supposed to keep our customers buying PowerPC Macs in the next year, what kind of guarantee that they will still support the PowerPX for how many years.”

“We still have large customers who are just doing their OS X transition now,” the retailer said. “They are going to be very concerned about yet another transition in a year’s time. Apple likes to keep secrets, but they have to [be open] on this one if they want to keep their large customers.”

“The typical retail customer doesn’t know what processor is in a iMac or iBook now,” he said. “The real thing that Apple has to make clear to everyone is it is not the processor that makes a Mac a Mac, it’s the hardware design and software combination. As long as that doesn’t change, most [everyone] but the diehards will stick with them.”

“Apple may be giving us more info during the week,” the retailer said, “but right now we are in the dark on what this is going to do to our business in the short and long term. And that’s a position that no business wants to be in.”

     
Email


TALKBACK

MICROSOFT RESOURCE CENTER
Free Hands-On Training Lab
Find out how key features of SBS 2003 can help you open up a new line of revenue. Register now >>


SBS 2003 Sales Reference Card
This handy reference card contains features at a glance, sales objection handling, pricing guidelines & more. Get it now >>


Microsoft Empower for ISVs rewards your big idea with big benefits and support.
Access key development tools at a low cost to help you develop that idea into an innovative application. Learn more >>



ATTN: SOLUTION PROVIDERS
Autotask makes your IT business run. Better!
  • Manage your entire business from a single integrated system accessed over the web
  • Track and control service tickets, and efficiently dispatch field service techs
  • Monitor and analyze project profitability by project, customer and type
  • Bill by fixed price, time & materials, block hours or retainers
  • Set up workflow rules and automated notifications
  • Nothing to install. Easy to use. Affordable.
Click here ONLY if you want a personalized demo via the web
(North America only, please)


Attention Microsoft Solution Providers!



Want to gain a competitive edge? Try Microsoft Watch – FREE!



Each week you receive:
  • Microsoft News and Insider Information
  • Expert Analysis
  • Code Names of Upcoming MS Products
  • Year-Ahead Calendar, updated monthly



    Click Here to sign up now for your FREE 14 Day Trial to Microsoft Watch.
  •  
  • Add up to $1,200 of value with the new BONUS PACKS.
  • High Performance Storage That Blows Away Competitors.
  • Adaptec Adaptec SATA II RAID Outperforms LSI, Promise, 3Ware
  • Create, manage, and archive all content with EMC
  • Go Pro.Introducing Intel® vPro™ technology.
  • Free on-line courses at Data Center University
  • The Power to Build Great Devices – Windows Embedded
  • Windows gets top EAL 4+ security rating from SAIC.
  • Get the Facts on Linux and Windows Server.
  • Get a FREE Forrester white paper courtesy of Oracle.
  • Free Whitepaper: The future of Identity Management.


  • POPULAR TOPICS
    CHANNEL INSIDER BUYER’S GUIDE
    •Catalog Publishing
    •Dealer Management
    •Order Configuration
    •Price Management
    •Sales Management

    View All >

    CAREER CENTER
    Search the jobs you want & get the info you need – post your resume here today!

    Powered by Dice
    SPECIAL REPORTS
    White Boxes
    MS vs. IBM
    Linux in the Channel
    Network
    CHANNEL RSS FEED
    Stay in the Zone
    Put The Channel Insider on your desktop.
    FREE NEWSLETTERS
    Subscribe to The Channel Insider: Channel News, Reviews, Resources and more.

    Make your selections below:


    Contract Watch

    The Channel Insider Update

    Preferred e-mail format:

    Enter your e-mail:


    view all newsletters >>
    Channel Insider Quick Links
    Ziff Davis Footer Logo