Slashdot Mirror
ComputerWare/Elite Chain Throws In The Towel
An anonymous reader writes "ComputerWare, a ComputerLand-like chain of stores specializing in Apple computers, went out of business in 2001. Thinking he sees an opportunity for expansion, the guy who owns Elite Computers, the long-time independent Apple computer store literally across the street from Apple HQ in Cupertino, bought the CW name and leased and reopened the SF Bay Area stores as 'ComputerWare by Elite Computers.' In 2003, Mr. Elite realized the reason the original ComputerWare owners got out -- Apple's engaging in 'unfair competition' -- and announced he is closing the chain along with his original store."
From the article, I can't comment on what things were like before Apple opened up its retail stores, but the business was purchased by a company doing pretty well until they touched this. If the allegations are correct, and Apple shipped product to its own stores significantly in advance of competitors and then used registration to lure customers to the branded stores, then this smacks of anti-competetive behavior. Apple may not have a monopoly on desktops, but they do have a monopoly on Apple products. By selling their products both in their own storefronts and to competing storefronts, they need to be treating both as equal stores. Otherwise, there could be legal repercussions, like this one.
Now, I'm not convinced yet, but I want to see how this pans out.
If Microsoft wanted to do that, that's perfectly within their rights. Apple can't be troubled to support every damn type of hardware or architecture out there, and no one can force them to. It's the same as Texas Instruments not letting Casio license their (arguably) superior calculator software, or Kodak not licensing the operating system of their cameras to other companies.
Irix only runs on SGI hardware. Boo hoo. It's hardly anticompetetive. It's just far easier to support, not to mention that Apple is a hardware company and selling machines is how they make money.
Every once in a while I like to masturbate a new word into my vocabulary, even if I don't know what it means.
Apple products are developed and produced by Apple. It's their business (literally) and if they want to sell their products in Apple stores only, they are free to do so. You can argue it's not fair or whatever, but it is up to Apple to decide who sells their stuff. So, in a way, they mind their own business.
>Apple may not have a monopoly on desktops, but they do
>have a monopoly on Apple products. By selling their
>products both in their own storefronts and to competing
>storefronts, they need to be treating both as equal stores.
>Otherwise, there could be legal repercussions, like this one.
What?!? By this definition of "monopoly," every company has a monopoly on all its own products. This makes no sense. What legal repercussions? Unless Apple signed an explicit contract with these guys, promising equal access to their products, why shouldn't they be able to ship first to their stores, for example? I'd certainly like to know about the grounds of Thomas Armes' "unfair competition" suit.
Could someone with more legal knowledge than I comment on this?
"Science is a tribute to what we can know although we are fallible" -Jacob Bronowski
Anyone take any life saving courses? Sometimes you can't save the person in trouble and it's better to have one victim than two (person in trouble and would-be rescuer). It sucks. It's not fair. Welcome to the real world. I think we are in a similar situation here.
I know some true believers are going to get upset but face it; Apple is in a life and death struggle. They are not as close to the edge as they were in previous years but "beleaguered" status is never that far away. The Apple Stores, IMHO, are an important part of Apple's long term strategy. Maximize profits by cutting out the middle man. As Apple is forced to cut its profit margins this becomes critical. On top of this these stores are incredibly important marketing tools. They are very strategically located and the couple I've visited always seem to have a lot of foot traffic. People may not be buying but they are getting the sense that Apple is a viable option today and not just a historical footnote. These stores are far more valuable than super bowl ads.
If it is necessary for Apple to screw small independent dealers in order to ensure its long term survival then so be it. If Apple were to become further marginalized and lose its image as a viable alternative these dealers would get screwed anyway.
And frankly, it's not Apple's fault that Elite sucked. The number of complaints from their (ex)customers I've heard about them is astounding. Their management decisions, sales tactics, and repair records are all the explanation I need for their failure.
I've worked at an Apple Specialist before, who realized that the Apple Stores interact with a completely different market, and that there are entire market segments almost exclusively available to Specialists. They've continuously grown and become the largest and best Reseller / Specialist / Service Provider within a good 100 mile radius. Yes, there was a supply shortage when the new iMacs rolled out.. yes, MacWhorehouse and a couple of the newly opened Apple Stores got a handful of units before we did... but we still got the first stock in the county.
Every Apple Specialist and Reseller has a rep who covers a certain territory and takes care of "his stores", the shops in his area. Ours ROCKED. Totally on top of things, took care of ordering issues, advised about ways to improve store operations, suggested places to get additional income (it's all about the service department, baby!), helped the store plan out long-term strategy, and always was checking in on how the store was doing.
If Elite hadn't been a shady operation and had run themselves well (As ComputerWare and a number of other successful Apple Specialists have), worked cooperatively with their Apple liaisons, maintained a better-trained staff base (rather than paying them a crappy wage + dinky comission.. I interviewed @ one of their stores once and took another job), paid attention to the market and where Apple was opening stores, and only re-opened Computerware stores in GOOD locations, things might have turned out differently.