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http://www.insanely-great.com/news.php?id=729
.Mac: The other shoe falls
By ron carlson, Insanely Great Mac
July 29th 2002
Apple is pushing their online service with fat margins and free accounts for retailers
and their employees
Think Secret has brought to light details on Apple''s little remarked plan to sell
boxed .Mac subscriptions through retail and mail order.
According to TS'' Nick dePlume those selling the boxed version of .Mac can expect to
earn a 30 percent return on each $99 subscription they sell. Moreover, Cupertino is
offering free accounts to all Apple-authorized reseller employees who complete a Learn
and Earn .Mac course.
The $49 existing iTools'' member discount will remain an Apple exclusive.
Planning ahead
This information makes it fairly clear that Apple anticipated, though probably not the
full extent, resistance by users to its iTools to .Mac transition plans. The sweet
deal being offered to resellers is designed to win over the hearts and minds by
getting frontline sales people to evangelize the product.
Recent years have witnessed much grumbling and not a few bankruptcies because of the
low margins Apple has forced on third-party resellers.
Though it''s only one product, free .Mac accounts and a juicy margin may help improve
Cupertino''s strained relations with its reseller channel. If anyone deserves a break,
it certainly is the company''s third-party reseller channel.
A tough sell
Nevertheless I think it doubtful that resellers, enthusiastic or not, will be able to
sell many accounts for two reasons: strong, pre-existing resentment of .Mac and a
general resistance by the public to pay for online services.
Given the long-term importance .Mac likely plays in Apple''s future plans I honestly
hope I''m wrong.
Post your comments at:
http://www.insanely-great.com/news.php?id=729
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