The Core Dump

A strong conviction that something must be done is the parent of many bad measures

[By Nic Lindh on Tuesday, 04 November 2003]

Apple dealers taking it in the shorts

According to Think Secret, Apple’s updating their dealer requirements for resellers. According to reports from a web cast on Monday, dealers, among other things, must now have an ‘attach rate’ of 60 percent on the Apple Protection Plan, aka APP, aka Apple Pure Profit. APP is Apple’s extended warranty scheme, adding two years to the product warranty, plus free phone support for the life of the extended warranty.

Dealers are up in arms over this for two primary reasons: 1) 60 percent attach means that for every ten machines you sell, six of them have to go out the door with APP; unfortunately, APP can be a hard sell, as some people don’t appreciate spending an extra, say, $349 on the purchase of a $1,599 PowerBook–especially since APP can be added on later through a phone call up to one year after purchase.

Reason 2) is the big one, though. In order for a customer to get APP, the sale has to be registered with Apple, meaning Apple has the customer’s name, email, and phone number. Apple has promised to not use this information to take business away from the dealer, through, oh, say, calling them up and telling them to visit their local Apple Store. According to one dealer who wished to be anonymous:

“One dealer shared with us email forwarded to him by a long-time customer who after just 90 days of signing an AppleCare warranty was contacted by Apple about a ‘special discount offer’ if he bought peripherals from the Apple Store – just miles from the Specialist dealer he originally did business with.”

Of course, anonymous whining from dealers has to be taken with a grain of salt, but it’s still disturbing that this sort of behavior from Apple may be going on, since it’s exceptionally short sighted of Apple to cannibalize their existing sales channel. Sure, the Apple Stores are all nice and Kubrickian, but they don’t provide specialized sales support for vertical markets, and that’s not their purpose.

« Let’s get fair and balanced


Enjoy the ten latest posts!

Book roundup, part 30

Back once again with the sci-fi and general calamity. Includes The End is Always Near, Eat the Apple, A Memory Called Empire, Gideon the Ninth, Infinite Detail, Permafrost, Fallen, and The October Man.

The master’s tools will never be used to dismantle the master’s house

Any sufficiently advanced incompetence is indistinguishable from malice

Impressions moving from an Apple Watch Series 3 to Series 5

Is there reason to upgrade from a 3 to a 5?

Plans are worthless, but planning is everything

Often injustice lies in what you aren’t doing, not only in what you are doing

Die in a ditch

After all these years, Nic still can’t understand the American attitude to healthcare.

The big thieves hang the little ones

Book roundup, part 29

A sci-fi and fantasy heavy installment that includes The Valedictorian of Being Dead, The Mastermind, Broadsword Calling Danny Boy, Tiamat’s Wrath, The Raven Tower, The Liberation, The Light Brigade and Cryptonomicon.

Politics is not the art of the possible. It consists in choosing between the disastrous and the unpalatable