Apple faces increasing competition in the tablet market

Apple has remained as the leading player in the tablet market since its debut with the iPad two years ago, but the company – now the most valuable company in the world – could very well lose its market share to Google-based Android devices.

This is the opinion of Christopher Riley, MD of The Notebook Company – one of the country’s leading notebook and accessories retailers – which also runs the on-line sites Laptop.co.za and Notebook.co.za.

Riley said Apple is losing market dominance “fast”, one must also keep in mind they had all of it initially.  The third quarter of 2010 saw the iPad securing 87% of the market. Now Apple commands just over 50% of the market. “The release of the Apple iPad Mini has also affected sales of the iPad. There has been a lot of hype surrounding the iPad  Mini and many people put their purchase decisions on hold, waiting, instead, for the arrival of the mini tablet from Apple.

“In a way Apple seems to have shot itself in the foot with the launch of the mini Apple tablet, certainly as far as a diversion of consumer spending is concerned. But even with the fall-off of iPad sales, Apple will still remain very dominant in the tablet market. But it will share market leadership with Android-driven devices, and we can all agree Tablets are here to stay”

The Notebook Company extends credit terms to customers via RCS

The Notebook Company – one of the country’s leading notebook and accessories retailers - which also runs the on-line Sites: Laptop.co.za and Notebook.co.za – has announced that it has been approved as an RCS ‘acceptor’, allowing the company to issue and accept RCS cards as payment for goods for up to 24 months.

The RCS Group is an independent, financial services company operating in South Africa, Namibia and Botswana. Since its inception in 1999 RCS has provided credit and financial services to more than one million customers. Christopher Riley, MD of The Notebook Company, said that even though he is skeptical about selling to customers on credit – given the dire financial conditions facing many companies and consumers -  “going the RCS route enables us to enter into credit agreements with the call on an established, well run financial institution.”

He said he expects credit sales via RCS to grow over the next 12 months, and could have “a noticeable” impact on the company’s overall revenue.

“It is hard to project what revenue will now be generated via RCS sales, but I do believe it will be more than a blimp on the radar screen.”

Credit deals offered by The Notebook Company

The notebook Company offers short term rentals on laptops, iPads, projectors and related IT equipment. The company also offers a variety of longer term finance applications, from personal applications, business applications to Vodacom contracts.

Clients can apply online at www.notebook.co.za/finance

About RCS

The RCS Group is an independent, financial services company operating in South Africa, Namibia and Botswana. Since its inception in 1999 RCS has provided credit and financial services to more than one million customers.

RCS has since evolved to offer a diverse product range to customers, including private label cards, retail cards, personal loans and insurance.

The major shareholders in the RCS Group are The Foschini Group (55%) and Standard Bank (45%). Both the shareholders are listed on the Johannesburg Stock Exchange.

The Notebook Company says sales of Apple iPhones are brisk

While notebook and accessories retailer, The Notebook Company, said it is essentially not in the smart phone market it is nonetheless making “brisk business” in the sale of the Apple iPhone 5 – although sales are not as robust as in comparison to Apple iPad sales.

According to Christopher Riley, MD of The Notebook Company clients were still clamoring for iPad 1 and 2s, with iPad 3 sales “consistently good”. “Apple iPad sales are consistently good, even though Apple has lost some of its market share in the last few months as the market expands on the back of what is a vibrant and growing market sector.”

While Apple has lost market share it has not really impacted on its revenues that much as the size of the cake in the tablet market has essentially gotten bigger.

Riley said The Notebook Company is “meeting a demand” by selling Apple iPhone 5 units, but said sales of the new smart phone would not have a material impact on the company’s total revenue.

“Apple sales in general certainly have a marked impact on our total revenue. It is well over 20% now – but we see the supply of Apple iPhones as a service to our client base as the smart phone market is not one we will seriously enter,” he said.

Core Group requests The Notebook Company to remove the Apple logo from its websites?

The Notebook Company – one of the country’s leading notebook and accessories retailers - has been asked by Core Group (aka Apple South Africa) to have the Apple logo removed from its websites.

This was confirmed by Christopher Riley, the owner and CEO of The Notebook Company – which also runs the on-line Sites: Laptop.co.za and Notebook.co.za. Riley said he had already removed the Apple logo. “The Apple logo has been removed and we now merely reflect the fact that we sell Apple products by the use, only, of the Apple name – in a pure text form as requested by Core.”

An interesting point, however, is that Core itself is not allowed either to use the official Apple logo even as distributor, according to Sean Swanson from Core.

Last year a similar request was made by Dell, which, through its attorney’s Adams and Adams, demanded that The Notebook Company remove the Dell logo from its web-sites, and also refrain from using the domain name www.DellLaptop.co.za.

This domain name was subsequently  changed to www.laptop.co.za/Dell

The Notebook Company continues to successfully sell Dell product.

“I understand that the owners of brands have the right to decide how their logos can be used.  Our Brand Bar with different brand logos just makes it easier for the consumer to select which brand he wants to buy."

Apple’s mini iPad will fly off the shelves in South Africa says The Notebook Company

There has been a lot of pre-launch hype with regards to Apple’s mini iPad – as
there was with the Apple iPhone5. Much of the excitement – when the products
were actually launched – had already dissipated due to all the pre-press hype.
Nonetheless, these two products are sure to fly off the shelves around the world,
re-affirming Apple as the number one technology company in the world.

This is according to Christopher Riley, MD of local notebook and accessories
retailer, The Notebook Company – and a big supplier of Apple products.

Riley said said his company will be selling the iPad mini at between R5000 – R8
000, with stocks accepted to arrive in early November.

“The Apple iPhone 5s have been flying off our shelves and we have been battling
to keep up with the demand – and we are expecting no less of the Apple mini
iPad,” he said.

Riley noted that there would still, however, be a sustained market for the iPad 3
and iPad2s. “Demand has muted somewhat, but they are still stalwart sellers.”

Commenting further, Riley said the 7-inch mini iPad from Apple is viewed by
many market watchers as an attempt by the technology giant to combat – and
“beat-out” – competitors in the fast-exploding 7 inch tablet market.

“It is war out there,” said Riley, “but Apple still has a keen edge. Right now the
company has the Midas Touch and although they are allowing more hype to
permeate the market prior to launches – something they did not do in the past –
their products seem to be hitting the right buttons with users. Apple is just the
product users want.

Acer sales are up at The Notebook Company – is Acer making a comeback?

Sales of Acer laptops are enjoying a resurgence at The Notebook Company,  one of South Africa’s leading suppliers of notebooks and accessories – an occurrence that seems to be in synch with the launch of the company’s i5 dual core range.

Said Christopher Riley, managing director of The Notebook Company: “Acer seemed to have fallen off the radar screen some four years ago – well, certainly at our company, in terms of sales. But they appear to be back with a vengeance and are now giving the other ranges we offer a run for their money. This is since the company launched its i5 range.

“This might be a recovery strategy on their part, because the Acer Core i5 is hitting the market at $999 – and seems to be proving incredibly popular. It is currently giving our Apple range a run for its money,” said Riley.

Apple iPhone 5 shortage creates concern

What appears to be an increasing shortage of the Apple iPhone 5 is spooking Apple investors according to a recent article in the New York Times, with this shortage expected to substantially affect landed prices of the new units in South Africa.

Said Christopher Riley, managing director of The Notebook Company, one of South Africa’s leading suppliers of notebooks and accessories: “We went through sustained shortages of the last two Apple iPads – which had a marked impact on prices locally – and now the iPhone 5 is facing the same obstacles.”

The iPhone 5 is causing quite a stir – perhaps more than was anticipated – and the big question is whether or not end users will pay the premiums they are now facing due to the stock shortages, or whether they will, rather, opt for other smart phones.

”If users vote with their feet, this will have a certain impact on Apple’s revenue from the iPhone 5,” said Riley.

Commenting further, he said that if the stock shortage does affect orders for Apple’s iPhone 5, it is likely that the company’s revenue stream will, however, be significantly augmented with sales of its mini iPad.

“Apple’s less expensive iPad – the mini iPad – is expected to be launched in the next few weeks. Some market watchers believe this unit will hit the tarmac running with sales more than making up for any drag on revenue caused by the stock shortage for the iPhone 5,” said Riley.

But, as they say, time will tell.