KEY POINTS:
Renaissance lost responsibility for maintaining Apple's website and online store as the computer giant launched iTunes yesterday.
But the NZX-listed company is positive about the move, saying Apple US will now set the prices which will drive growth in the Apple business in New Zealand.
Renaissance managing director Paul Johnston said a number of products had dropped in price as a result of Apple taking over the website.
He was "extremely pleased" about the iTunes music store coming online in New Zealand because it would boost growth in the sale of iPods - which Renaissance has exclusive rights to distribute in New Zealand
It had taken a bit of time for iTunes to arrive in New Zealand, "but we are all delighted it is here".
The website has two million songs available and 65,000 podcasts, including a growing collection of homegrown podcasts from TVNZ, Radio NZ and The Voice Booth.
Renaissance had been looking after the website on Apple's behalf until Apple were able to bring the iTunes online store into New Zealand, said Johnston.
The company was "confident" that it would continue to manage the distribution of Apple's products long-term although it did not have a "100 per cent guarantee on that".
It had distributed Apple's products for 26 years, had "an extremely good relationship with Apple" and "we are carrying on the business and have aggressive growth targets to aim for in the coming year".
Renaissance's share price dropped 5c to close at $1.30 yesterday.
First NZ Capital analyst Chris Byrne said Renaissance was significantly undervalued and had a 12-month target share price of $1.85 for the company.
He estimated that iPod sales represented about 20 per cent of Renaissance's revenue and iPod's success would influence consumers to buy other Apple products.
IPod's market share in New Zealand is 80-90 per cent compared with about 75 per cent in the US.
