Menu
EXCLUSIVE: Dicker Data and Apple go separate ways

EXCLUSIVE: Dicker Data and Apple go separate ways

But Dicker says HP and Microsoft partnerships are over the line

Dicker Data and Apple have agreed not to continue with a multi-million dollar distribution partnership that Dicker inherited through its recent acquisition of Express Data and Express Online.

However, in good news for the distributor, Dicker Data chairman and CEO, David Dicker, said partner deals with fellow ICT giants HP and Microsoft had been negotiated and were "over the line".

Dicker that the company decided not to carry on the partnership with Apple after looking at the figures and concluding that it would lose money to do so. Apple has a gross margin of four per cent and that was not a "viable deal".

He said currently the gross margin being returned through Express Online was under that.

Dicker said that Apple required a $20 million bank guarantee for the deal to go ahead and Dicker could not get that guarantee. If it could have then it might have got Dicker closer to going ahead with the partnership.

"You need the guarantee to get a credit account with Apple," Dicker said. "The guys in the US said 'we don't like the look of this, we need a bank guarantee'. We couldn't get it."

Smaller partners through Express Data and Express Online were also sticking with Dicker Data, according to Dicker.

As to the effect the Apple news would have on the market and his company, Dicker was optimistic. "It may have some psychological damage," he said. "Apple fan boys might think it's a bad decision but the sensible guys in the industry will think it's the right move.

"Some people might say 'why not go with Apple and make money with the ancillary products {which have higher margins]," he said. "My argument to that is why run with Apple? Why not just sell the ancillary products?

"Looking at the numbers though, it really was impossible to make a buck."

The $65.5 million deal to acquire 100 per cent of the issued capital of Express Data is formally completed tomorrow, April 1.

The business of integrating the two companies then starts in earnest.

Apple declined to comment.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Dicker DatadistributionAppleexpress onlineExpress Data

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments