June 18, 2004

A BusinessWeek column recommends that Apple mend its relationship with resellers, since they’re important to keeping the brand alive and revenues flowing. The article notes that Apple’s store revenues are up by 900%, but company revenues are up only slightly, making it appear that store sales are being taken from other resellers–even though Apple denies that. "Apple needs to set some boundaries and give resellers space to run their businesses," says writer Alex Salkever. He concludes, "Of course, Apple can’t and shouldn’t pretend to guarantee the survival of all small resellers. Many will get out of the business — and they should. Viewed as a whole, small resellers have failed to build Apple’s market share and its brand. But throwing out the good resellers with the bad would cost Apple a huge amount of customer goodwill."

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