Next Byte may bite Apple back on Software prices

Australia's largest Apple reseller, Next Byte, may begin delivering a few blows of its own in possible retaliation for unwelcome Apple retail advancements in the continent. The reseller is expected to begin selling Apple software at extremely hefty discounts, sources said.

Last week, NextByte reportedly announced to its email list that it will begin selling some Apple-branded software at a heavy discount to the usual price; so substantial are the discounts that they are believed to be below the Apple wholesale price for the products.

"Underselling Apple puts NextByte in breach of the Trade Practices Act and gives Apple the legal right to withhold products from the reseller," one source said. "This has the potential to change the Australia's Apple landscape immensely."

Unlike operations in the United States, Apple retains no physical presence in Australia outside of its online store and it relies completely on its resellers, such as Next Byte.

In November, Adam Steinhardt, managing director at Apple reseller Next Byte, expressed frustration over Apple Australia plan to once again sell Macs within major retail chains. The computer maker launched five Apple "stores within a store" within David Jones and Harvey Norman shops to boost sales of Apple products in the continent during the holiday shopping season.