One Sydney based distributor said: "We have been told that Apple will source brands currently being sold in Apple shops overseas directly and not via local suppliers of the brand. This is despite the fact that we have exclusive distribution agreements for these products in Australia. If this is the case and Apple open stores in major cities like Sydney, Melbourne and Brisbane it will hurt both us and local Apple resellers who have stores close by".

They added: "We know that Apple is doing this with suppliers to their stores overseas as it cuts out a layer of costs. They are going straight from manufacturer to Apple".

Discussions with several Australian distributors of Apple accessories for both notebooks and iPods have revealed that several are aware of the situation but are frightened to speak out because of the effect that Apple could have on their business.

A new Apple store is currently under construction on the corner of King Street and George Street in the Sydney CBD.
Plans submitted to Sydney Council show that the store will be over 3 levels with each floor being around 445 square metres. It is anticipated that the store will cost between $14 and $18 million to build which makes it the most expensive technology store in Australia.

During the past few weeks the company doing the Apple store fit out has had to close streets to lift heavy steel girders staircases and equipment into place.

Plans for the Sydney store incorporate a glass staircase, which will connect the three levels.

Currently Apple has around 200 official retail stores, most of which are located in the United States, Britain, Canada and Japan.

Apple also plans to open a store in Melbourne in 2009.

A spokesperson for Apple was not available to comment on the distributors claims.