iPhone X may go off shelves soon as Apple cuts down on retailer margins

Apple’s iPhone X has seen a huge demand from all corners of the world while the company has been grappling to supply the numbers. Fans of the iPhone X are finding it difficult to get their hands on the new bezel-less flagship, but things look worse for the Indian market. According to a new report, Apple has reduced retail margins on the iPhone X by almost 30 percent, causing many retailers to stop taking orders for the phone as they cry foul.

Both chain owners and small-scale retailers are furious over Apple’s decision to cut margins as it means lower profits for them while the Cupertino giant makes the most out of higher margins, according to a report by The Economic Times. The report adds that Apple’s move in India has caused some retailers like Sangeetha Mobiles, for example, to stop taking orders of the iPhone X. This will further reduce the supply of the flagship in the country which is already seeing a pretty huge demand.

“Apple has cut margins on the iPhone X from 6.5 per cent to 4.5 per cent for large retailers like us, and if a customer pays by card, which is usually the case, the margin reduces to almost 1.5-2 per cent,” said Subhash Chandra, managing director at Sangeetha Mobile to ET. “Apple gives the least margins… How on earth do they expect the retailer to work for them for free – our overheads are anywhere around 10 per cent,” Chandra added.

Source: http://indiatoday.intoday.in/technology/story/iphone-x-may-go-off-shelves-soon-as-apple-cuts-down-on-retailer-margins/1/1094752.html