In the Corona crisis, Apple seems to be tightening the conditions for third-party manufacturers who want to sell their products through official Apple stores. Like the one released in the UK The Telegraph reports, the – currently booming – sales via Apple’s in-house online store are also affected. Some suppliers report that they are being “squeezed out” by the iPhone company.
Extended payment term, changed sales model
The According to information manufacturers have to wait significantly longer for their money. The payment term was extended from 45 to 60 days. That alone might not be very tragic because other traders are demanding similar concessions in COVID-19 times. It is unclear how many countries the new measures apply to; Apple is happy to introduce models worldwide.
The iPhone manufacturer is loud The Telegraph at the same time the sales model. In the future there will be a so-called consignment model, a sale on a commission basis. This ensures that the Apple Retail Store and the Apple Online Store only let money flow when a product has actually been sold, according to the report, not when Apple has received it (plus 60 days, of course). With this, Apple is shifting the inventory costs to the suppliers.
No negotiation possible, Apple says little
Such attempts are not new to Apple, according to the report. However, it was previously possible to negotiate directly with the group and thus ward them off. Now the company is setting the rules and is not ready to talk either. All suppliers would have to follow the new model, the new “Terms” are “not open to negotiation”, as it is called in the English original. Manufacturers are actually happy to be represented in the Apple stores and the Group’s online store because both have a broad target group and can also make new products known. However, the changes come at an inopportune time, which Apple is accused of taking advantage of the current situation – especially since the stores in many countries are not open at all due to the lockdown measures of various governments.
One affected company said that Telegraph Apple is doing its suppliers a disservice. These increasingly suffered from “cash problems”. Still, hardly any company will get out of the contracts because the “brand publicity” at Apple is so great. Compared to the newspaper, Apple only commented that it was working “closely with world-class companies” that would be sold through the distribution channels. Apple is reviewing its range of third-party products and the structure of its business models “regularly” in order to enable suppliers “to grow reliably and securely”.