Apple APRs left bobbing in PC World’s wake

iPad fad: The launch saw long queues outside stockists, such as New Oxford Street-based Square Group

Apple Premium Resellers (APRs) have voiced discontent as the volumes of iPad stock allotted to them in launch week fell well short of the number they ordered.

More than two million iPads have been shipped globally since the US launch in April and the much-vaunted device debuted in nine more countries, including the UK, on 28 May.

As predicted by CRN, Apple has carefully managed routes to market for the iPad launch, initially restricting UK supply to its own stores and APRs – as well as giant retailers DSGi and Best Buy. It is expected to move to a broader distribution model in September.

Robert Peckham, Mac channel director at the Technology Channels Association, said Apple’s decision to allot DSGi-owned mass retailer PC World over 2,000 units had upset some of Apple’s top-level APR partners.

“Some APRs only got half a dozen units so there was some annoyance there,” he said.

Peckham said the launch was also marred by LED failures and a lack of iPad accessories, particularly cases and camera kit.

Square Group, which is one of the UK’s larger APRs with three APR stores, confirmed that it had taken delivery of 200 units – well short of the 1,000 units that the company had requested.

Square managing director Darren King said he was disappointed with Square’s initial allotment, claiming that most models sold out by midday. However, he said he understood Apple’s strategy.

“We would have liked more stock but we understand that Apple had to share it around – particularly when you consider there are 670 or 680 APR stores around Europe,” he added.

King predicted Square would ship 5,000 iPads this year. “Stock aside, I believe it will be monumentally successful,” he said.

According to insiders, it could be three months before Apple makes the device available to its wider UK channel, including distributors Westcoast, Computer 2000, Ingram Micro and Computers Unlimited.

Although the iPad is primarily pitched as a consumer product, business-to-business resellers also confirmed they are keen to get their hands on the device.

Martin Hellawell, managing director of Softcat, said: “As it becomes available to the channel we will certainly put it in our kit bag. It is not a huge margin opportunity as there is not a good deal of value add. But it will be adopted in the business market, particularly by higher-level executives.”

APRs were unable to take pre-orders from businesses before launch date but demand is high, according to King.

“We see a lot of demand coming from the hospitality industry,” he said. “The largest order so far has been for 50 units.”

Apple chief executive Steve Jobs said: “Customers around the world are experiencing the magic of the iPad, and seem to love it as much as we do. We appreciate their patience, and are working hard to build enough iPads for everyone.”