Apple price increases leave dealers hopping

Despite promises to keep prices aggressive, the vendor has announced a hike of about five per cent

Dealers have warned that Apple?s decision to raise the prices of its new Power Mac range is likely to create fulfilment problems and annoy its channel partners.

Apple issued a memo to its dealers saying it was necessary to increase prices by about five per cent across the range, from 10 March. The news came just two weeks after Apple UK enterprise business unit manager James Dingwall promised to keep prices ?aggressive?. Powerbooks prices are not expected to rise.

An Apple representative attributed the rises to ?movements in the dollar exchange rate?.

Dealers expressed enthusiasm about the product range ? and irritation about the higher prices. Kashif Merchant, sales manager at London-based Micro Anvika, said: ?I?ve no idea what Apple?s up to, but the UK dealers are being squeezed from all sides. They are risking damaging their relationship with the dealer base.?

Another dealer, who wished to remain anonymous, said: ?Apple is testing its dealers? patience.?

Many dealers expect that panic buying before the 10 March deadline will lead to fulfilment problems. Julian Klein, commercial director at Frontline, said: ?To the extent that resellers do a bit of forward ordering, there may be a strain on availability.?