INDUSTRY VIEWPOINT - iMac, you Mac, he Macs, she Macs

Ed Ewing, general manager of Apple Systems Business Unit at Computer 2000, comments on the Apple iMac after its launch earlier this month.

The iMac has been selling since 7 September. As far as I can see, it has been moving well and nobody seems to have a negative word to say about it. It is a stylish accessory and is powerful enough for most home users.

What's more, its popularity means that the industry is predicting a supply shortage. This translucent blue and white, futuristic looking machine could well be the boost Apple needs.

The iMac is Apple's offering to consumers and education. It is radical in many ways - the first being its price. At £849 plus VAT, the competition should be worried. When the product went on sale last weekend, anticipated customer demand was phenomenal. So much so that two stores - Micro Anvika on Tottenham Court Road, and Mac and More in Berkhamstead - opened at midnight on Saturday to cope with the influx.

I would say that its design and features are definitely setting the pace for other computers in the field. The iMac is a very well-specked machine.

It is internet ready, equipped with fast Ethernet. It is also quite a controversial machine in that it has a CD Rom, but no floppy disk drive.

In terms of response, this is the first time I have seen so many comments about a product from Apple in the past four years. In fact, there has been substantial interest from all quarters.

As far as we are concerned, and I am sure it is similar across the board for distributors, demand is already fast outstripping supply. The orders are pouring in. We have only fulfilled approximately 50 per cent of demand and about 30 per cent of orders.

However, the iMac was so well hyped beforehand that we anticipated a massive demand and over-ordered. I think this again is probably a situation we have in common with our competitors.

Resellers will probably find the main iMac customers are predominantly the Apple faithfuls. The type of people who are definitely ready to replace their Macintosh, but thought they would have to buy a PC through lack of Apple products available. Many have been waiting for such a compelling product to allow them to return to their beloved Apple.

About 10 per cent of Computer 2000's business is currently through Apple.

The vendor is hoping to double its market share with this product and I hope it succeeds.

I am sure no one will run into tremendous problems selling the iMac at first, because they can use market in the established Apple customer base.

The difficult part for resellers will be when it comes to gaining fresh Apple users once this established customer base has been exhausted. Dealers will have to persuade customers to abandon their usual branded or second division PC in favour of buying an iMac.

And Apple has got to contend with its present channel profile. It must be asking itself if it has the coverage it needs there.

However, at the moment, we are finding resellers that have never historically bought Apple, approaching us for the iMac. And, depending on the kind of reseller, it could prove to be either an opportunity or a headache for them.

If the dealer is geared up to sell to home users, with low-price items, it will be the perfect product. However, corporate resellers may find it more problematic. At this price, there may well not be enough margin to be made on the product, making it necessary to sell a package to make it more viable.