In a shock move, Rod Orrock the Director of Buying and Marketing at Dick Smith has quit 14 months after leaving a senior role at Harvey Norman to take a role at the mass CE retailer.
David Richards
Intel Viiv Will Drive PC Entertainment
Australian Company Altech will be among a group of select Companies who will demonstrate for the first time the new Intel Viiv platform at work.
Altech has been chosen to to show off the first Intel based ePCs based on its much talked about Viiv platform at the Consumer Electronics Show in Las Vegas on January 5.
Steve Dallman, Intel’s director of channel sales and marketing, said Viiv will combine a media-centric PC platform with a validation program to ensure components are interoperable, targeting marketing, and an effort to increase available content for the systems.
It’s a launch that Dallman believes will be crucial to the solution provider channel because it provides a flexible platform that begs for customisation and in-home services. “This is the reason resellers will do well with Viiv,” he said. “They can set the functionality and price points based on user desires.”
The Viiv platform calls for a PentiumD dual-core processor coupled with a motherboard using either an Intel 945, 955x or next-generation Calistoga chipsets; 1Gbit Ethernet; high-definition video; surround sound audio; and the capability to control all devices connected to the system through one remote control device. It also requires support for Intel’s Matrix Storage, technology that lets either a consumer or an integrator configure RAID 5 and data mirroring, and Intel Quick Resume technology that the company promises will turn on Viiv systems as quickly as any consumer electronics device.
Intel has so far declined to reveal specific spending on its Viiv marketing plan. But the company famously threw $400 million at another high profile launch–is Centrino mobile platform that many solution provider credit with boosting the overall market for notebooks and wireless networking.
Like the Centrino launch where Intel promised that Centrino-branded notebooks would always work like-branded wireless networks, Dallman said marketing efforts for Viiv will include driving consumers to Viiv-branded products from the Media Center PCs to compatible add-in products, such portable media players or automation products.
“This is the largest market validation endeavor Intel has taken on,” said Dallman.
Intel also is setting up calls centers in cooperation with participating Viiv manufacturers to field initial consumer calls. A separate center will be set up for those building and installing the systems, he added.
By the start of the show, Dallman expects to have 400 of its channel partners including the likes of Altech, Westan and Optima trained on the Viiv platform. Of that 400, he expects 50 to 100 to have Viiv-certified systems. A variety of Viiv form factors are expected at CES, from standard tower systems to high-end devices that are more like consumer electronics products in look and feel–some with LCD screens on the front. Some of these models will be aimed at consumers while others will be focused on audio/video installers and digital home integrators. Price points are expected to range from $2,000 to $7,000.
Microsoft, of course, started the ePC trend with its Windows XP Media Center Edition, and since then a number of solution providers have not only begun building specialised ePCs but several also have launched separate companies to take advantage of providing in-home integration services to the mass market. But Media Center PCs are still a small slice of overall consumer PC sales and systems builders are hoping that Intel will change that.
“I look at the Viiv launch as rise in tide that will float all the boats and expand the overall market for entertainment PCs,” said Steve Jarvis, president of Elite PC’s.
Jarvis is particularly keen on the marketing plan surrounding Viiv and expects a big boost in consumer awareness as a result. Elite PC in 2005 spun off a separate company to focus on ePCs called ZLife. Jarvis said the company is putting together custom sites for integrator partners that want to sell Viiv systems from ZLife. The sites include an onsite Web configure of ePCs that ZLife can drop-ship to integrators or their customers.
Meanwhile, Shayne Yonce, CEO of CDI and its spin-off Digital Home PC, says the Viiv platform and its RAID requirement is a strong selling point in today’s market, especially as end uses continue to store more and more digital files on hard drives. “It’s not a question of ‘if you hard drive fails’ it is ‘when your hard drive fails,” he says. “When it happens we can make sure you do not experience a devastating event. You still have all your pictures and all your data.”
Zambroski notes that ACE Computers’ highest end model for the A/V community comes with 3 terabytes of data, enough storage to warehouse tons of music, pictures and movies.
That’s a lot of space for digital content, but many integrators say it will be needed as more digital services and content are deliver to the home and small office over broadband. Intel will host some content providers at CES endorsing the Viiv platform, but the real push will come mid-year when Intel releases its 1.5 specification with stronger Digital Rights Management (DRM) than currently available in Microsoft’s Media Center Edition, Dallman says. “That’s when we will see some exciting things for Viiv,” says Dezel Lane, CDI’s manager of digital home PCs.
That is also around the time Microsoft plans to launch its new 64-bit operating system, Vista, which system builders systems expect will give Viiv an additional boost. The bottom line from systems builders: expect a good Viiv introduction at CES but expect to see some serious growth in the second half of the year.
Jestar Now Charging Customers For Support Calls
Budget airline Jetstar appears to be deliberately stinging customers with additional fees by blocking out booking access to add-on services (such as car rental) and then charging fees for simply making a support call.
Consumers who visit the main Jetstar website to book a rental car are asked to provide several details relating to their booking, flight, airport where the car will be picked up or dropped off along with which car they want to book.
One also has to provide name, email address and a contact phone number.
I know, I found out the hard way when I went to book a rental car recently.
Despite filling in all the fields correctly the ‘Reserve This Car tag was still not letting me book a car online so I did the obvious, I phoned the help number which was located right under the problem booking form. This is the same number that has a big slogan above it saying “Can’t find what you you are looking for online? Give us a call”.
The operator who took the call found my flight details and made my car rental booking.
Not only did I identify the price of $283 dollars that had come up on the screen via the Jetstar web site, I also identified the type of car that I wanted to rent, along with the rental Company which in my case happened to be Avis.
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The operator said that the booking confirmation was being sent to me by email. When it arrived the bill had gone from $283 to $347.
When I called back a separate operator told me the reason for the increase was because I had chosen to call the Jetstar help line.
The operator then said that he was unable to cancel the booking as he “could not get into the system to cancel the car rental booking”. He said I would have to call Jetstar again and ask for another department.
Andrew Mcginness, a spokesperson for Jetstar, said that the matter would be investigated by Jetstar’s Customer Service team.
This is not the first time that I have encountered problems with the Jetstar IT operation, during recent trips to Sydney airport I was unable to either barcode swipe the issuing of my boarding pass or use my mobile phone to gain a pass.
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Instead I was forced to queue in a line where out of 8 desks, only two were being used to process hundreds of passengers who had encountered the same problem as me.
The Australian Competition & Consumer Commission claims that all additional charges must be outlined by a call centre operator prior to the buyer accepting the price.
In the case of Jestar this was not done by the operator.
Foxtel Profits Slump As Netflix Takes Customers
As expected Foxtel profits have taken a battering falling 8% after the Company was forced to slash prices ahead of the launch of Netflix.
Plasma/LCD Mount With New Twist
Atdec, the Australian designer and manufacturer of display mounting systems, has launched the Telehook 31-42 Pivoting Wall Mount – the first to allow both landscape and portrait positioning of LCD or Plasma flat panel displays.
The 31-42 Pivoting Wall Mount is the latest addition to Atdec’s Telehook series of wall mounts. The Telehook series provides a range of practical solutions for mounting all types of large, flat panel LCD or plasma displays.
“Sales of 30 to 37 inch LCD and Plasma televisions are growing strongly in Australia, and the Telehook 31-42 Pivoting Wall Mount addresses the needs of this market segment by offering consumers a simple, flexible and affordable mounting solution,” said Stephen Crozier, Managing Director of Atdec Pty Ltd. “Users are given the option of displaying their screen in either a portrait or landscape position. It opens up new possibilities for using flat panel displays for decorative purposes, as well as for entertainment”.
The 31-42 Pivoting Wall Mount also offers users the flexibility of adjustable tilt and pan options from -20 to 20 degrees on the wall.
The Telehook 31-42 Pivoting Wall Mount is ideal for LCD and Plasma Flat Panel Displays from 31in. (78cm) to 42in. (106cm), weighing up to 50kgs (110lbs). It suits Video & Electronics Standards Association (VESA) compliant displays with 100mm x 100mm (4in. x 4in.) and 200mm x 100mm (8in. x 4in.) mounting hole patterns. The design features a maximum distance of 81mm from the wall to the back of the display.
Atdec partners with most of the key AV organisations such as NEC, Hitachi, Fujitsu, Samsung, LG, BenQ, Sharp, Sony, Panasonic, Acer, Dell and IBM designing equipment to suit their individual products. “These relationships and our own research keeps us informed of worldwide trends ensuring our products meet consumer demand and emerging technology requirements,” said Mr. Crozier.
Priced at $199 (inc. GST), the Telehook 31-42 Pivoting Wall Mount is available through leading audio visual resellers, information technology resellers and major commercial furniture companies such as Thinking Ergonomix and CEDIA members as well as retailers including Harvey Norman and Domayne. Atdec’s Australian State distributors are: Ground Floor Marketing (Victoria and Tasmania), Debetrek ( Queensland and Northern Territory), Sylex (Western Australia), Leader Computers (South Australia) and Corporate Express; New Zealand distributors are Sylex and Metrolink.
Product enquiries can be made to Atdec on or www.atdec.com.au.
EXCLUSIVE: Philips Premium TV’s Will Be Sold In OZ Next Year Claims TP Vision Executive
ChannelNews understands that JB Hi Fi would have launched the Philips premium range this year however problems with Google’s Android TV delayed the launch of the Philips premium offering.
COMMENT: Missing Numbers Flaky Results, Why Gerry Harvey Should Quit
COMMENT: What’s the difference between Woolworths, Coles and Harvey Norman? A lot when it comes to responsible financial reporting and the way in which their operations are run.
A trip through the annual financial reports of all three companies reveals that a lot is lacking when it comes to trying to glean information from the Harvey Norman annual report.
There are no breakdowns of how his consumer electronics or IT divisions is performing because Gerry Harvey and his management team don’t want the market to know how each individual division is performing.
Are appliances doing better than IT or are furniture sales propping up the company?
The fact is we will never know because the inclusion of performance breakdowns would expose some of the weaknesses in the Harvey Norman operation. Talks to analysts will tell you that Harvey Norman is more a retail property company than smart discount retailer.
Unlike Coles, who publish their Officeworks store’s department performance or Woolworths who does the same with its Dick Smith stores, Harvey Norman chooses to hide their numbers and one has to question why?
Is it because their consumer electronics and IT operations are struggling up against JB Hi Fi, Officeworks, Dick Smith and the likes of The Good Guys?
Analysts and Investors are now calling for more transparency and better reporting by the retail giant who is suffering on several fronts. It was only 12 months ago that Gerry Harvey was telling the world that Clive Peeters was a “great buy” at $35M, now after losing a million dollars a month from a business that was breaking even when he acquired it, which he intends to shut down at an additional cost of 10 million.
It was only a few years ago that Harvey Norman had 60% of the Australian IT market, which is the era when brands like Logitech made serious money partnering with the retailers.
Recently they walked away from Harvey Norman due in part to what is called the “Gerry Tax” which is the 20% that Harvey Norman demands above normal profit margins. There is also the issue of falling sales with Logitech executives claiming that as Harvey Norman demand more from the Swiss Company that sales from his stores were actually falling while climbing with other retailers.
Once a great discount retailer, Gerry Harvey and his wife Kate Paige, who plays a key role in the Harvey Norman business appear to be on a slippery slope, as Gerry makes ill-timed and ill-informed comments about online retailing and the lack of a GST Tax.
Last week he was blabbering Australians should be “as happy as pigs in shit” with low unemployment and the resources boom, but he reckons they’re too frightened to spend – in his stores presumably – and has predicted this Christmas will be a shocker.
Or is it more a case of products being expensive in Harvey Norman stores and when consumers do walk into his stores they get a poor retail experience?
Melbourne based writer Leon Gettler said that Gerry Harvey is kidding himself if he blames his problems on nervous consumers. The idea of the so-called cautious consumer is not what it’s cracked up to be.
He says that despite the signs emblazoned all over the front of shops advertising 30 per cent, 50 per cent and 70 per cent discounts, no one is buying. But that’s not about consumers being too scared to spend: it’s a failure of his retail management strategy.
Blaming his poor performance on frightened consumers is a cop-out, as yesterday’s ABS numbers reveal household spending is not weak at all.
The hard reality is that Harvey Norman appears to be more a property company than a smart retailer. His recent 9% climb in profits was more attributable to a revaluation of his property portfolio than it was selling more products.
Gettler claims that a closer analysis of GDP figures shows that household spending is doing well. Retail spending accounts for only 32 per cent of total household spending – in other words, more than two thirds of household spending is done outside the retail sector.
Closer analysis of the data suggests that while retail sectors are experiencing serious deflation and weak spending volumes, households are spending more on non-retail goods and services.
Gerry Harvey is today being hurt by people and organisations that are smarter than he and his management team.
Well known for their bullying of vendors and distributors the Harvey Norman team is constantly being outperformed by the likes of JB Hi Fi who started out in 1974 selling audio equipment and records.
They are now a major seller of mobile phones, home theatres, computers anything with an Apple brand on it and above all content such as music, video and games products that are hard to find in a Harvey Norman store.
JB Hi Fi recognised that goods under $99 are often the bait that draws consumers into their stores.
Consumers who walk in to a JB Hi Fi store to buy an iPad, Phone or the latest Samsung offering are tempted by racks of cheap CDs and DVDs. In an age when retailers are worried about the Internet, JB Hi Fi is launching a digital music streaming service followed by a video streaming service.
Last week when I walked into a large Harvey Norman store in Sydney and asked for assistance the retail assistant told me that did not work in the IT department and that she would find someone who did, 10 minutes later I was still waiting.
What Gerry Harvey needs is a new younger management team, a team that have the passion and the nose to turn his business around. Most Harvey Norman executives today are clones of Gerry Harvey and he is a force who back in 1997 said the Internet was a “fad.” Since then he has fought the Internet day in day out as he has tried to hold onto consumers.
What he needs to do is retire and the sooner the better the business will be.
Windows Vista is next OS
The name of Microsofts next consumer operating system has been revealed. It will be called Windows Vista.
Microsoft’s next consumer operating system to replace Windows XP will be called Windows Vista. The secret was revealed in a brief video message published by Microsoft on Friday. The first beta of the software is scheduled to be released on August 3 2005. Microsoft’s next-generation operating system shed its codename early Friday when Microsoft posted a 68-second video message on its website that had the sole purpose of introducing the name of the final product:
Microsoft associates the terms “clear”, “confident” and “connected” with the new operating system, hinting to various new features of the software – including a new graphics engine, more multimedia capabilities, improved organisation of information, more security, and easier to use networking features for various devices around the house. The first beta version of the software is heading towards IT professionals and developers on August 3, according to Microsoft. The final product will be released in the July 2006 timeframe, which will be preceded by at least one release candidate (RC) and a second beta, which is rumoured to become available sometime in November of this year. According to Microsoft, the video message was taped at a recent briefing for the firm’s global sales and marketing staff.
Harvey Norman + Dick Smith Online Back End Up For Sale
EBay is set to sell eBay Enterprise the owners of Magento the Company that powers some of Australia’s largest retail web sites including the backend of the Harvey Norman web site.
COMMENT:Why Sharp Is A Massive Basket Case
Sharp Australia hasn’t got much left in the consumer appliance market, they got out of the TV market last year, not because their TV’s were inferior but because of poor marketing resulting in a lack of uptake by consumers.





