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Apple Asks UK Retail Landlords for 50% Rent Cut Despite Record Sales
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Oh no they’re asking for lower prices. What an evil thing for them to do. Now of course when people want their iPhones cheaper that’s great that’s a good thing but when an evil bad bad corporation wants a price cut oh no bad corporation bad corporation no cookie
Has anyone here not refinanced their mortgage when rates dropped?
Because the only backlash would be from people who have no idea what they are talking about?
Apple is offering landlords a choice.
1) if the landlord thinks the real estate market will be weak when the apple lease runs out, they can choose to lock in at current rates for some extra years, in exchange for a short term reduction in rent. In the long term the landlord makes more money if he/she guesses right.
2) if the landlord thinks the real estate market will be strong when the apple lease runs out, they can choose to keep the current lease in force, and hope apple will pay more at the end of the lease to renew. In the long term the landlord makes more money if he/she guesses right.
Or, the landlord can counteroffer.
How does this hurt *anyone*?
No, we are all supposed to “do the right thing” and continue to pay the higher rates out the goodness of our hearts so that the mom and pop banks that service our mortgages can afford to pay their executives their full bonuses.
while it’s easy to get upset. Reading the headline, I encourage anyone to look at the rates landlords are asking. They have not adjusted their rates to reflect the sales actually possible from their locations, and the online times we’re living in.
Asking prices are often so outrageous, no one can afford them. So can Apple afford them, because they make an obscene amount of money?Are they rude to do this? Who knows, we have not read the details of such an contract.
There are many things to be upset about around Apple, but this is not one of them imo.
Asking prices are often so outrageous, no one can afford them. So can Apple afford them, because they make an obscene amount of money?Are they rude to do this? Who knows, we have not read the details of such an contract.
There are many things to be upset about around Apple, but this is not one of them imo.
The tone of this article is odd. That Apple made record profits without having their physical stores open, says very plainly, they don't need them. In other words they are not as valuable as the landlords probably priced the leases on originally. Now, these landlords are not small mom and pop businesses struggling to get by during the pandemic, they are some of the wealthiest real estate companies in the world, so Apple is just trying to renegotiate a fair price for the value they are getting from leases.
I understand what you are saying, even before you commented. But this is not the point I'm making.
I imagine the majority of people will see that Apple has asked landlords to reduce its rent even though Apple has posted record sales thereby potentially increasing profits? Additionally, they are doing this during a pandemic, a time where everyone else and even landlords are hurting.
The timing for them to do this is wayyyy off. Asking when they post record profits and a pandemic. So again, I will reiterate, how can they not see the potential backlash with this?
I say this despite the fact that I think what they are doing is completely logical and in their best interest. In the article it says that the landlords slashed rent for its other tenants but they did not do this for Apple. So in a way, Apple is kind of getting the short end of the stick and I think landlords knowing that Apple is one of the most valuable companies in the world, they won't extend them the offer they gave other tenants.
But they aren’t asking to pay less money. They are asking to pay MORE money than they are currently required to, because they are extending the leases in exchange for temporary rent relief.
And they are just asking. They aren’t refusing to pay what they currently owe.
Again, the only people who are upset about this clearly have no idea how the world works.
You mean like continuing to pay their retail staff their full wage throughout the duration of the retail closure?
As well as deferring credit card payments?
I am with Apple...How much money I have is none of your concern. I agreed to pay a lease for a full year and due to the pandemic I have been shut down for like half a year by now and I didn't get my money's worth.
Of course, landlords can disagree and Apple could leave and then the landlord have to find another person to pay that rent.
Of course, landlords can disagree and Apple could leave and then the landlord have to find another person to pay that rent.
and then you lost it Lol. All of that above would have been factored in with the current agreement. And if it hadn’t passed you buy, Apples shops are closed currently, the Landlord has lost all of those benefits. Even you wouldn’t go to the mall!
Most of you: “Apple is awful for this!”
Also most of you: “I can’t wait to buy the iPhone 12 zomg”
Also most of you: “I can’t wait to buy the iPhone 12 zomg”
quite easy. In my case I believe Apple make great products, some of the greatest, but I absolutely do not believe they’re a great company.
I'm not sure why this is a problem. Apple is making the landlords an offer of a new contract; if the landlords don't like the offer, they can stick to the current contract. What's disgusting?
Please describe in your own words what you think Apple is doing. I can't imagine why you think this is obscene. Apple is not forcing the landlords to do anything. If the landlords don't like the new deal Apple is offering them, they can choose to stick to their current deal. If someone says to you, "You can keep what you have, or you can trade it for something else", why isn't that a good deal for you?
i pay a lot of money for apple products with the thought that they pay well down the line.
I can‘t see anything wrong with a company negotiating price despite how large or how rich it is. It’s practical business. also it offered to extend lease In return and didn’t force any landlord to do so if they didn’t want. It’s a fair business.
Bill Gates doesn’t have to buy an orange for £1,000 each. He can buy and negotiate for the price as everyone do and I don’t see any reason why he shouldn’t.
Bill Gates doesn’t have to buy an orange for £1,000 each. He can buy and negotiate for the price as everyone do and I don’t see any reason why he shouldn’t.
I love how you apple apologists react. "I see no issue with this. Apple shouldn't have to pay more. It's not apple's fault. A negotiation is fair. more excuses...."
You can't even get apple to PRICE MATCH. How do you expect landlords to give apple a break? GTFO here. Use their billions upon billions of reserved CASH to help them thru the crisis. This is what savings is for. Basic course in accounting 101.
You can't even get apple to PRICE MATCH. How do you expect landlords to give apple a break? GTFO here. Use their billions upon billions of reserved CASH to help them thru the crisis. This is what savings is for. Basic course in accounting 101.
Seems like a win-win to me...if the landlord wants to exchange short term profits for longevity.