Fruity cargo cult Apple has admitted that it is burning its resellers and might lose a few more after it beefs up its direct sales unit.
In a 10-K Annual Report Job’s Mob mentioned that it losing resellers was number four on its list of risks which could negatively impact the business.
Apple runs a network of distributors and resellers which are having to operate some incredibly “narrow operating margins”.
The company said that its channel partners have raised some concerns about its go-to-market strategy which they think will conflict with their business interests as distributors and resellers of the company’s products.
“Such a perception could discourage resellers from investing resources in the distribution and sale of the company’s products or lead them to limit or cease distribution of those products.”
Apple said it did not want to kill off its channel and will continue to invest in programmes to boost resellers’ sales.
“These programmes could require a substantial investment while providing no assurance of return or incremental revenue. The financial condition of these resellers could weaken, these resellers could stop distributing the company’s products, or uncertainty regarding demand for some or all of the company’s products could cause resellers to reduce their ordering and marketing of the company’s products.”
