Principal calls off contract courtship

Concern over Power's distribution strategy has influenced Principal'sdecision to end contract talks

Mac specialist distributor Principal Distribution has accused Power Computing of setting unrealistic shipment targets and claimed the manufacturer is unlikely to invest in the UK in the long term.

After breaking off contract talks with the Apple Computer cloner, Principal chairman Rod McMillan said: 'Power Computing has unrealistically high short-term aspirations for product shipment. We are concerned about its dismissive attitude towards competition.

'Given the fact that Principal's interest is totally channel-based and Power Computing is totally direct in the US market, we thought any investment in the UK channel would be short-lived,' he said.

McMillan also suggested the distributor does not have confidence in Power Computing's product strategy.

The statement is seen as a signal to resellers that Principal will continue to carry a range of Apple market products without chasing CPU distribution contracts. Principal's directors bought the company from P&P last December, but began talks with Power Computing more than 12 months ago (PC Dealer, 26 April 1995).

General manager Alan Clarke said that Principal has not lost out on a contract. 'With CPU contracts, we are not interested in supersonic volume growth if there is no margin. But if the right clone deal came along we would be interested.'

Power Computing was the first company to ship Apple clones in the UK when Mac Warehouse sold a small amount of stock at Apple Expo last September.

The manufacturer was unavailable for comment.