Apple ends Dixons deal to follow US

Apple is set to end its retail relationship with Dixons Stores Group and instead join forces with John Lewis Partnership.

Apple's UK subsidiary wants to follow the store-within-a-store policy used in the US with CompUSA. John Lewis, with 23 sites, will also be stocking Apple software.

Sources close to Apple confirmed a deal was expected in the next two weeks.

Steven Rigby, operations director at Byte, claimed Apple's problem stems from a lack of support for its retail channel. He cited that Byte had twice tried to sell Apple kit, but while the retailer was satisfied with the products, staff never knew how to sell them.

Apple dealers, who requested anonymity, said they believed the store-within-a-store idea works in the US due to Apple's almost iconic status.

However, since Apple has a lower brand awareness in the UK, the policy may not be the most effective method of selling. Others complained that after years of loyalty they had again been left in the dark by the vendor.

Other retail outlets claimed to be unconcerned by the deal. One said: 'If Apple tried to talk to me it would have to talk very hard.'

Apple US has claimed that as a result of the deal with CompUSA and subsequent hardware focusing, Mac CPU sales have increased from three per cent to 14 per cent of total CPU sales within the stores.

Dixons Stores Group was unable to comment.