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New Zealand's sole distributor of Apple computers and the iPod music player has rejected speculation it is about to lose the lucrative account that has fuelled its growth.
Renaissance Corporation managing director Paul Johnston said speculation on the Publicaddress.net Publicaddress.net weblog and other websites, about a move by Apple to ditch Renaissance in favour of a direct presence in New Zealand, was "off the mark".
"We've already been given our indicative targets for the next 12 months," Johnston said. The targets handed down by Apple suggest Renaissance's business with the California-based computer maker is safe for at least another year.
Renaissance, listed on the NZX, would no doubt be upset to see the Apple relationship end. Sales of the iPod helped push Renaissance profits up 120 per cent to $5.1 million last year. The Apple account remains the jewel in its crown despite attempts to diversify into other areas of IT.
Shares in Renaissance closed up 1c at $1.28 yesterday.
Johnston has warned that profit is likely to grow a more modest 20 per cent this year as the iPod buying frenzy abates.
Apple has a direct presence in many of the countries in which it sells computers and iPods and even runs its own retail stores. That fact, and a recent move by Renaissance's IT department to change the administration of Apple email addresses used by Renaissance staff, has led observers to suggest Renaissance's Apple-selling days are numbered.
Johnston was aware there was a perception that Apple products were sold at a significant premium in New Zealand compared with other markets, but said it was unfair to compare New Zealand and American pricing.
"Part of the problem is that lots of people do the comparison with the US. We buy through Apple Australia."
He said the exchange rate accounted for most of the difference between Australian and New Zealand pricing, but because of its hedging "it has to be a significant shift for us to make [pricing] different".
Johnston had no light to shed on reports that the opening of a New Zealand iTunes store was imminent.
