Longer payment terms set for Apple store suppliers

Partner suppliers and accessory makers will have to wait a longer time to get paid, according to a new report.

Apple may be changing its product handling for suppliers who provide Apple retail store items and in Apple.com. Placement is at risk for those who don’t agree to the new terms.

The Telegraph mentioned that Apple has made a direct demand to suppliers. However, where before terms could be negotiated it was said that the Cupertino-based company offered a stiff ultimatum.

Term changes include a longer payment period, from 45 days to 60 days. A consignment model was also outlined, which says that the supplier will only be paid if their products are sold.

All partners may have the same deal, and dependence on the brand may mean that most will accept the terms.

In response, an Apple representative said that Apple constantly reviews third party products and its model structure to give suppliers a way to grow their business.

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