Apple Computer: The Reseller Conflict


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Thomas Armes (Armes) had been an authorized reseller of the apple computer since 1989. Apple decided to start its own retail shops in May 2001, to boost its Macintosh computer sales. Armes announced a midnight party as usual to sell the product name jaguar. Because of non deliver the product on time name iMac, apple new Macintosh computers most of the customer who had already given the money in advance had cancelled the order. In April 2003, he shut down his store. Tom Santos owner of one of the apple largest store along with Armes filed a multimillion dollar lawsuit charging apple with fraud.

Apple entered retailing by opening a retail shop on May 19, 2001.many resellers expressed fear that the apple store, which had a better ambience, would attract expressed the fear that this would affect their business.

By 2002, Apple was selling its products online and through retail store and had even opened boutiques. These stores, they charged sold products unfairly price relatively lower than the price offered by the reseller.

In april 2003, apple cancelled dealership of around fifty dealer after they objected to Apple’s new contracts agreements. According to those agreements it gives no rights to a jury trail for the reseller in matter of dispute.

In 2004 Apple introduced new contracts to its reseller and service providers, which legalized the discrimination that apple was showing between company owned store and reseller store.

In Feb. 2005, a class action lawsuit was filed by a group of five consumers dealers in the superior court in San Francisco. The lawsuits accused Apple of selling used products simply by refurbishing them and of deliberately reducing the warranty period.


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