Korea Mobile Distributors Association (KMDA) asserted on Nov. 21that Apple had been conducted a big power trip by selling demo phones for public relations compulsively. "Apple has been forcing distributors to purchase demo phones and has prevented them from selling them for one year," the association said.
In general, manufacturers purchase demo phones and supply them, and later collect them again after the display or experience event. Accordingly, distributors do not pay for them in principle.
However, Apple urged distributors to pay for all of their demo phones and decided not to sell iPhones if they do not have them for more than a year. Discontent is growing among distributors who have to keep their demo phones in stock for a year without being able to sell them outside.
According to an official of the association, Apple even interfered with the location of the demo phone display and the location of the poster, and even passed the cost for manufacture of the display stand to distributors.
The official said, "Apple did the same act for wearable and pad products as well as iPhone products."
In addition, they were also suspected of conducting a big power trip on mobile network operators. Apple is now facing sanctions by the Fair Trade Commission due to controversy over its alleged act of passing the cost of advertising and repair to mobile network operators.
"Owing to the popularity of iPhone products, however, distributors had to accept the forced sale despite unfavorable conditions. Now, they are disclosing the Apple's bad act, being ready to the stop of the iPhone sales," he added.