A new The telegraph this weekend he claims that Apple Store suppliers have been “forced” by the company to accept stricter terms to sell their products at Apple Stores and the Apple Online Store. The vendors cited in the report describe that they were “pressured” by Apple through these new terms.
Through its retail and online stores, Apple sells accessories and products made by third-party companies. This includes iPhone cases, smart home accessories, Mac peripherals and more. These companies are affected by the new Apple Store terms.
The report explains that suppliers are now required to wait 60 days after the order is completed to be paid, compared with 45 days today. Companies are now also required to accept a “consignment model”, meaning they are “paid only after an item is sold, rather than after received by Apple, transferring inventory costs to them”
Interestingly, vendors say that in the past they have managed to negotiate these terms with Apple. This time, however, the terms were “established by Apple and not open to negotiation”. This ensures that all suppliers now follow the same terms, as opposed to different terms for different suppliers, but puts more pressure on each one.
A company that sells products at the Apple store said, “They are not doing their suppliers any favors; their suppliers face cash challenges that they do not. I don’t think anyone will refuse; there is very little competition for the brand exposure you get with Apple. It is certainly a squeeze. “
In response to the story of The telegraph, an Apple spokesman said:
“We deeply value the close relationship we have with world-class companies that sell their products through Apple.com and in our stores. Apple regularly evaluates the variety of third-party products we sell and the structure of our models to provide suppliers with the ability to grow their businesses reliably and securely. “
In the end, suppliers are unlikely to terminate their contracts with Apple in light of these new terms, the report explains. Apple Stores offer more visibility and brand exposure than other retail and online channels, say suppliers.
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