A new report from The Telegraph this weekend claims that Apple Store suppliers have been “forced” by the company to agree to stricter terms for selling their products in Apple Stores and the Apple Online Store. The vendors cited in the report describe being “pressured” by Apple with these new terms.
Through its retail and online stores, Apple sells accessories and products made by third-party companies. This includes things like iPhone cases, smart home accessories, Mac peripherals, and more. It is these companies that are affected by the new terms of the Apple Store.
The report explains that vendors must now wait 60 days after completing an order before receiving payment, up from 45 days today. Businesses must now also accept a “shipping model,” which means that they “get paid only after an item is sold, rather than after Apple receives it, passing inventory costs to them.”
Interestingly, vendors say they have been able to negotiate these terms with Apple in the past. This time, however, the terms are said to have been “set by Apple and not open for negotiation.” This ensures that all providers now follow the same terms, rather than different terms for different providers, but puts more pressure on each of them.
One company that sells products in the Apple store said: “They are not doing their suppliers any favors; Your vendors face cash challenges that they don’t. I don’t think anyone is going to reject them; there is very little competition for the brand exposure you get with Apple. It is certainly a squeeze.
In response to The Telegraph story, an Apple spokesperson 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 give suppliers the ability to grow their businesses reliably and securely.
In the end, vendors are unlikely to terminate their contracts with Apple in light of these new terms, the report explains. Apple stores provide more visibility and brand exposure than other online and retail channels, vendors say.
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