Want China Times, Staff
Reporter 2015-01-06
 |
| An Apple store in Nanchang, Jiangxi province, Oct. 17, 2014. (File photo/Xinhua) |
An Apple
distributor in Beijing recently ran off with 60 million yuan (US$11.74 million)
of down payments and term payments from many downstream distributors, reports
the IT Times.
The case,
apparently one of simple financial fraud, stands to have quite a big effect on
Apple. The company may subsequently dump all of its intermediate agents in
three years after adjusting its distribution network.
Citing a
business insider surnamed Xiong, the IT Times said it is
not
surprising that the distributor ran off. Thanks to his special links with
Apple's general agents in China, the distributor had no problem acquiring
iPhone 6 stocks when other distributors were short of the handset, Xiong said,
adding that this is why many distributors made down payments to obtain the
iPhone 6.
The
situation reflects why Apple has already made changes to its distribution
network in China. Two years ago, the original Apple agents in China–Founder
Century, ECS Technology, Highly and Changhong Jiahua–began dropping out of the
distribution network, voluntarily or involuntarily. Apple began instead to
foster its own authorized distributors and directly operated retail stores.
With the rapid growth in Apple's own sales channels, major intermediate agents
that enjoyed abundant supplies and brisk sales in the past have been feeling
the pinch.
It is
obvious that Apple is seeking to get rid of its intermediate agents in China,
the IT Times said. It said retail stores now have a bigger say in Apple product
distribution. For instance, hot items like the iPhone 6 (64G, 128G) are now
delivered first to Apple's own stores, app stores or below-the-line retail
stores rather to agents, IT said.
Agents and
intermediate distributors are something of the past, one unnamed source said,
adding that Apple very likely will not need such distribution channels in China
in three years time.
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