Apple Store Success Rankles Some Resellers

CompuCraft has also lost some of its consumer business, including iPod and lower-end computer sales.

But the company's core business is in selling higher-end systems to graphics professionals; if anything, that business has picked up since the Apple store went in, Swets said.

"I must say that we were worried about it" when Apple opened its store, "but so far our experience has been pretty good," he says.

But Swets acknowledges that not everyone is so lucky. Before the store went in, CompuCraft checked with other resellers about their experiences. Those, like CompuCraft, that focused on business sales seemed to do fine when an Apple store came to town. But those that focused on consumer sales didn't, he says.

Indeed, such stores will likely have a difficult time competing against Apple. The computer company has made a point of picking posh locations close to the affluent consumers that it craves.

And the company has spent a considerable amount making sure its stores display and market its products in the best possible way. Indeed, the company's retail operations didn't start posting a profit until last fiscal year, after three years of losses.

In contrast, many of the company's resellers are small businesses with limited marketing budgets often stationed in out-of-the-way locations.

"It's an uphill battle for [the resellers]," says Tim Deal, an analyst with Technology Business Research. "It's very difficult to compete with Apple's retail presence."

So far, most resellers haven't had to worry much because of the limited number of Apple stores. But the company's network of stores continues to grow rapidly, and more and more resellers may be threatened, says Deal.

Because of the growth of the retail chain, "there's not as much incentive for Apple to support these third-party resellers to the same degree they once did," he says. "In the future, if Apple becomes more mainstream, they might not be [as] selective in where they put their stores."