Apple's new online sales strategy may have a positive impact on the company's operation in Ireland in which 1,500 people are employed. Any Internet orders placed from Ireland - though processed and delivered from the US - will be reflected in the sales figures of Apple Ireland.
The Cork plant is also at the heart of Apple's market offensive through its production of the new G3 PowerPC 750 processor. This latest model is three-times faster than any PC currently on the market and on its first day of production, 14,000 G3's were booked in Ireland alone.
The national business development manager with Apple Ireland, Mr John Mallon, insisted the decision of the company to retail computers online should have no repercussions for dealers' sales.
"The prices available at the Apple Shop online (http://www.apple.com) are really no better than what you would get from any Irish reseller. The online option only works best for someone who knows exactly what they want to buy."
Products sold by the Apple Store are listed at what is called the "minimum advertised price", or MAP. Theoretically, customers shouldn't be able to find a better deal on a new system, but some resellers in the US are now undercutting official prices by as much as $500. Distributors and resellers generally mark up the cost of equipment to make their profits, and Apple is unlikely to undercut its product dealers on price.
Mr Mallon said the point of the new strategy was to enable buyers to purchase Apple computers from anywhere in the world. While the company is removing the resellers' cut in its online offer, shipping costs are not included in the overall price. Referring to the doomsday prophecies about Apple's future, Mr Mallon points to the profits made by Apple in Ireland and Europe last year.
"While losses are still a worry, we expect to record a worldwide profit in the next quarter or two. Between acquisitions of Power Computing and NeXT [Apple interim chief executive Steve Jobs's company] these have been hefty outlays that nobody seems to have taken into account," says Mr Mallon.
"We've demonstrated for 15 years our commitment to Ireland. The operation is not in difficulty, it's just the subject of a lot of hype. Our expectation now is not to unseat Windows, but to address the needs of creative people with graphics-intensive requirements."
