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As the rollout of the iPod shuffle proceeds here on the Silicon Isle, it's apparent that Apple is following the same distribution model it's using in North America—branded outlets and major distribution partners first, and the traditional third-party reseller channel last. Resellers this correspondent spoke with have said they've received only a trickle of iPod shuffles—five to 10 at a time—when their immediate demand is many multiples of that. "If I could get a 100," said one reseller, "I could sell them all right now." Instead, the five units he received were sold out even before they arrived—pre-ordered by the store's loyal customers. If the reseller had more, he would have sold more. Moreover, resellers say that upselling customers to the iPod mini is next to impossible because the limited allocation available in Taiwan is targeted elsewhere, as well. A master plan... Apple Taiwan's new strategy essentially puts all of its eggs in one basket, that of Synnex, the island country's biggest computer and component distributor. This company received 5,000 iPod shuffles from Apple and in turn distributed the vast majority to Apple's big-box retail partners, including Can Kun and, of course, 7-11, which is the most-visible part of the initial rollout. It's worth noting that all of the Can Kun locations I've visited include specialty Apple kiosks (ie store within a store). Though more often than not unstaffed, these kiosks are the best examples of quality Apple merchandising (officially-branded shops aside) here in Taiwan. According to various sources, this is all part of master plan being pushed by Apple Taiwan's new top manager, Kong Yuk Loong, who was recruited from IBM. It's said that this man's= goals are to drive exposure and, above all, volume. Swirling down... Customers are eager and the third-party resellers loyal, but given this state of affairs, those who carried Apple through it darkest days here in Taiwan are getting the short end of the stick—just like in America. Nevertheless, it has to said that pushing own-branded stores and big-box retailers is a logical shift if one's goals are to drive exposure and volume. Whether or not this strategy ultimately pans out is still a question for the future. But, when the next down turn comes, and it will, the company's most-loyal retail partners—the independent channel—will likely be a thing of the past. Are third-party resellers important to Apple's future? What's your take?
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