Knews Desk- Apple has made a big change by taking strict action on illegal supply and gray market activities of its iPhone in India. The company has ended ties with many distributors and has implemented new strict rules in the retail system. This decision has come after the report in which a case of buying cheap iPhones in India and selling them abroad at higher prices came to light.
Action on distributor network
According to reports, Apple has taken action against several distributors in India. These are said to include some distributors from Punjab, as well as some partners from Mumbai, Haryana and South India. The company suspects that these networks were supplying iPhones to the gray market, from where they were being sold at higher profits in countries like Russia, Africa and West Asia. The company is currently investigating other distributors as well and more stringent decisions may be taken in the future.
Now activation of iPhone will happen in the shop itself
Under the new rules, it has now been made mandatory to activate every iPhone in the store itself before giving it to the customer. This will include opening the phone box, inserting the SIM, turning on the device and complete setup. The purpose of this move is to ensure that the phone goes directly to the end customer and cannot be used in any kind of export or re-selling network. Retailers have been warned that if they violate the rules, their stores may be blocked and supplies will be stopped.
Strict monitoring of supply chain
Apple is now exercising more strict control over its supply chain in India. The company is focusing on big and trusted partners and also plans to reduce the contract period of premium retailers. Under the new system, the record of every sale will be linked to the activation data. That means the phone will be considered valid only when it is activated by the customer.
Attempt to stop gray market
The company has also implemented a new billing system, in which iPhones will be sold only at MRP. Retailers will be given their margin later through credit note after verification. This will ensure that no phone is sent out in an unauthorized manner. This step of Apple is being considered as a big change in the direction of keeping the supply and prices of iPhone stable in India. This will not only stop the gray market, but will also increase the chances of customers getting the product at the right price and from the right channel.
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