Kogan bets house against 'Apple's bitch'

Discussion in 'Apple Desktop Hardware/Software' started by MrPepper, Mar 7, 2011.

  1. MrPepper

    MrPepper Member

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    http://www.zdnet.com.au/kogan-bets-house-against-apple-s-bitch-339310828.htm

    Interesting story.

    Basically Kogan is predicting that Apple will, in the next year or so, stop selling saying through retailers like JBHiFi (who he says rely on Apple sales to an unhealthy level) and sell direct to consumers only.

    Can't say I know enough about the industry to comment on who will be right but it's an interesting bet to make :cool:


    -
     
  2. cyrax83

    cyrax83 Member

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    how much profit could jb hifi be making on Apple products (not accessories) ?

    all I hear is retailers going "rah rah apple profit margins are nothing" - if thats the case, no big loss right ?

    Also I can't see this happening, Apple stores are only in the capital cities right ? What about the rest of the country ?
     
  3. th3_hawk

    th3_hawk Member

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    Yes... but when you push the products out the door you can't upsell the accessories.
     
  4. Reaper

    Reaper Member

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    If Apple open more stores, for sure. They'd stop 3rd party channels through the 3rd parties themselves not ordering anything, as I really doubt that the whole of the jb store staff applauds when they sell another imac, people would be going to the apple stores instead for that for the same price.
     
  5. SLATYE

    SLATYE SLATYE, not SLAYTE

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    Couldn't JB win the bet simply by taking their last iPod Nano (after Apple refuses to give them more stock), pricing it at $10,000,000,000, and then leaving it on the shelf until 2014?
     
  6. Primüs

    Primüs Member

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    Having not read the legal documents, I dare say the bet more relies on when Apple will stop taking wholesale orders. I doubt someone with a million dollars to bet would be so stupid as to allow a simple loophole.

    Feel free to prove me wrong though :D
     
  7. Archy

    Archy New Member

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    I daresay there's some sort of clause to prevent that.

    The whole idea wouldn't surprise me, though. Apple needs the retailers to get their market share to a certain point, then they'll have enough retail shops to be totally independent.
     
  8. lavi

    lavi Member

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    in the last year 8 macbooks pro were purchased by my friends from JB, 9 if I include myself
     
  9. Autti

    Autti Member

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    Dell don't even have stores.

    The idea could work, but wether or not it happens is entirely different.

    I think Apple would have the final say, a risky bet to take.
     
  10. oldskoolbreakz

    oldskoolbreakz Member

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    just another PR stunt by a guy who makes shit products.
     
  11. ck_psy

    ck_psy Member

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    apple can just ship from their online apple store..
     
  12. Kurt

    Kurt Member

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    I went into an Apple shop the other day to ask about an iPhone accessory. The sales kid told me to buy it from the Apple online store as they didn't carry/couldn't get them in stores.

    It wouldn't surprise me at all if Apple (and many other manufacturers actually) start do do more direct sales over the net. Why let a middle man get some (most?) of your profit?
     
  13. shift6

    shift6 Member

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    The benefit of having Apple products in retail outlets such as JBHIFI, Myer, etc is that it's another Apple product that is exposed and can be compared to other products. Subjectively, I think that Apple products are designed brilliantly and can compared quite favourably in terms of appearance and brand recognition if placed next to another technology brand.

    Given also that Apple Retail Stores aren't as widely available as department stores, Apple could grossly miss out on the "walk-in" market. Having Apple products in retail stores helps saturate the market and visibility of their products, and could very well take a sale away from their competition.
     
  14. stmok

    stmok Member

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    They *did* have Direct Stores. I remember visiting one at Parramatta Westfield. The idea was that you tried their system out in person, then place an order to be delivered to your home or business.

    The idea failed, as they shut down all their Direct Stores last year.

    Dell decided to use JB Hi-Fi instead...
    => http://www.jbhifi.com.au/computers/dell/
    ...Alongside their Australian website.

    As for the Kogan bet? Just read his blog...

    JB HI-FI: THE HIDDEN TRUTH
    => http://www.kogan.com.au/blog/2011/mar/7/jb-hi-fi-hidden-truth/

    (I'm not for or against this guy, I'm just curious of why would one bet $1 million when they can invest that into their company. It just seems wasteful.)
     
  15. Swathe

    Swathe (Banned or Deleted)

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    I bet he's gotten more than 1 million dollars worth of publicity already.
     
  16. KookedGoose

    KookedGoose Member

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    He is (unsurprisingly) talking out his arse.

    Even in the USA where Apple Stores are everywhere, Apple products are still sold through a number of retailers including Best Buy and Target.

    Somewhere like Australia where their own retail stores are few and far between they need other retail partners to get their goods under people's noses.
     
  17. elvis

    elvis Old school old fool

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    In 2003 I ran a company for a short amount of time that (amongst other things) was an authorised Apple reseller. Apple forced us to sell everything at the same price as Apple Australia, and we could only buy at 10% less than that (thus limiting our profit on Apple gear to a maximum of 10% or less, factoring in other expenses of actually receiving the goods).

    We were only a tiny mob however. But even from what I hear now, that margin remains the same.

    There's bugger all profit to be made selling Apple products directly, as far as I can tell. However peripherals and services can make you good money if it's part of your business.

    I'm not entirely sure how JB HiFi and others make much profit from their Apple kit, to be honest. And a quick glance at their catalogues suggest that they are making a lot more profit from their front-page items (generally speaking, big screen TVs).
     
  18. MagyaR

    MagyaR Member

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    Apple retailers/repairers frown upon JB, when it comes to warranty, something about when the device gets sent from Apple to JB and when the device gets sold.
     
  19. cvidler

    cvidler Member

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    Last time Apple only sold through Apple stores they nearly went broke (90's). Bill (some guy who makes Windows or something :lol:) loaned them some huge amount of cash ($100m IIRC) to keep them afloat.

    Apple shareholders are right to worry about Jobs' succession plan. When he's not running the show the place makes some bad decisions.
     
  20. w@sted

    w@sted Member

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    Getting people in the doors is what JB-Hifi and other retailers want and a brand like Apple will do that for you.
     

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