Apple makes retailers cough up for iPhone display models

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iPhone sales
Apple makes retailers jump through hoops to sell iPhones.
Photo: Apple

A group of Korean smartphone retailers are upset at Apple for forcing them to purchase in-store tester iPhones. This differs from the usual practice of manufacturers, who will provide free display smartphones and pick them up later.

Apple, it seems, thinks different.

“Apple, on the other hand, forces retailers to purchase all the phones used for demonstration purposes, giving more burden to retailers than other manufacturers,” the Korea Mobile Distributors Association says in a statement. Apple doesn’t allow any retailers to buy iPhones if they do not also agree to purchase display devices.

It seems that Apple’s insistence on end-to-end control goes even further.

“Retailers not only bear the price of building shelves to display the devices for demonstration, but Apple also strictly controls the location of such shelves, as well as where posters are hung,” the KMDA continues.

The retailers are currently trying to calculate the damages they think Apple owes them. When this has been calculated, they plan to take legal action in conjunction with South Korea’s three mobile carriers.

While this could be singled out as yet another example of South Korea picking faults with Apple, it’s easy to see how retailers could be frustrated by Apple refusing to play by the established smartphone rules. Then again, anyone surprised by the controlling habits of a company which opened its own retail stores so as to control the customer experience probably shouldn’t be.

Source: The Investor

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