A number of Korean smartphone retailers are threatening legal action against Apple over what they consider an unfair policy on display models.
They say that Apple’s approach imposes unreasonable costs on them …
The Korea Herald reports.
They say the policy is particularly onerous at a time when Apple has pushed up iPhone prices and launched three expensive new models this year. Retailers also complain that Apple also imposes conditions on exactly how iPhones are displayed.
“Normally, most manufacturers provide all smartphones needed for display, which are collected later,” the Korea Mobile Distributors Association said in its statement.
“Apple, on the other hand, forces retailers to purchase all the phones used for demonstration purposes, giving more burden to retailers than other manufacturers.”
It’s not the first time Apple’s retail practices have come under scrutiny in Korea. In 2016, the country’s Fair Trade Commission (FTC) launched an investigation into Apple’s requirement for mobile carriers to buy minimum volumes of promotional iPhones, and to share the burden of repair costs. The FTC raided Apple’s offices in Seoul last year, just ahead of the iPhone X launch. That investigation found that Apple was guilty of unfair practices.
The retailers added they are currently carrying out an investigation to calculate the damages incurred by the practice, claiming they will take joint legal action with the country’s three mobile carriers.
Apple opened its first retail store in South Korea earlier in the year year, also achieving its highest ever market share in Samsung’s home market.
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