Red shed grabs cheap Apples

Red shed grabs cheap Apples

Two low-end Apple iPod models went on sale at The Warehouse this week, alongside the discount chain’s range of generic branded goods.

Renaissance, Apple’s New Zealand distributor, has confirmed it is supplying The Warehouse with two models — the 1GB Nano and the 512KB Shuffle. The Nano sells at $248 and the Shuffle at $116. In both cases these prices are below Apple’s recommended retail price. Renaissance will also supply The Warehouse with Apple-branded accessories.

Steve Ford, general manager of Renaissance’s Apple division, says the two low-entry models are being supplied to Warehouse stores throughout the country.

“As well as providing The Warehouse with these models, we have also trained some of the staff in Apple’s return policies and product specifications.”

Ford had no comment as to how Renaissance’s channel would react to the low-price offering to The Warehouse.

Cynthia Church, corporate affairs manager with The Warehouse, says that with the high market penetration The Warehouse has, the move could increase the reach of the product.

Daniel Parker, managing director of online Apple reseller, says he expects some reactions from other resellers, but the move does not worry him at all.

“A sale by Renaissance is still a sale, no matter how small the margin. Seeing as these are two low-level models of the iPod, I don’t feel too threatened by Renaissance’s actions.”

At the time of writing The Warehouse appeared to be selling iPod Nanos for less than anyone else in New Zealand. The discount equals most of the normal reseller margin on the product.

Parallel Importers, which sources stock from overseas, currently has a special on the 1GB Nano for $247, while the Shuffle is selling at $149.

The Warehouse in downtown Auckland has confirmed the models will be on sale this week.

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