14 DAY TRIAL // Cupertino-based tech giant Apple is being accused by a group of South Korean retailers that it is forcing them to cover several costs associated with iPhone marketing, including demo units showcased in their stores.
The Korea Mobile Distributors Association (KMDA) said in a statement that Apple is the only company that turns to such tactics, as all the other phone manufacturers offer demo units free of charge and collect them when the promotional campaign comes to an end.
Apple uses this strategy because of the popularity of the iPhone, the association says, and retailers have no other option than to agree with it if they want to sell the device.
Furthermore, Cupertino does not allow retailers to sell the iPhone in their stores if they don’t purchase demonstration devices, while also requesting them to build specific shelves for display units, all based on Apple’s very own and strict policies.
Joint legal action currently being considered
KMDA says it’s even considering legal action against Apple, though specifics haven’t been announced just yet. The group explains that it’s also pondering a complaint with the Fair Trade Commission (FTC).
The association is currently in discussions with South Korean carriers, including SK Telecom, KT, and LG Uplus, who are also selling Apple devices.
“Apple has increased the burden on retailers by pressing them to buy in-store tester iPhones,” KMDA was quoted as saying in the statement by The Korea Times. “We cannot hold out any longer.”
As the cited source notes, this isn’t the first time Apple is criticized for unfair practices in South Korea. Back in 2016, the FTC launched an investigation after Apple forced carriers to cover repair costs for iPhones sold on the local market, while last year, Cupertino required telecom companies to pay for an iPhone X and iPhone 8 commercial that was streamed on television.