Apple Wants 50% UK Store Rent Discounts In Line With Deals Offered To Other Retailers By Desperate Landlords

Apple Inc AAPL has told landlords in the United Kingdom it wants rent reductions to the tune of 50%, along with a rent-free period, the Times reported Sunday.

What Happened: The discounts on rent are related to a portfolio of 38 properties in the U.K. and have reportedly caused unease among the property owners.

The Cupertino-based smartphone maker’s tough tactics are said to be motivated by beneficial deals that other retailers have secured from landlords struggling to keep their premises occupied during the ongoing coronavirus crisis. 

Apple is offering to extend leases by a few years in return for lowered rents.

Why It Matters: The Tim Cook-led company’s retail stores are considered to be profitable and landlords are keen to keep Apple as a tenant, the Times noted.

Last week, Apple shares closed the $400 mark after the tech giant released forecast-beating results for the third quarter this financial year.

The iPhone maker's revenues rose 11% year-over-year to $59.7 billion from $53.84, with product revenues making up for 78% of the total. International sales made up 60% of total revenues.

The company suggested during the earnings call that the launch of its highly-anticipated iPhone 12 line, including 5G handsets, could be delayed by weeks.

Cook, along with CEOs of Facebook Inc FB, Amazon.com, Inc AMZN, and Alphabet Inc GOOGL GOOG, appeared before a House Antitrust Subcommittee last week to deny each of their companies' alleged monopolistic practices.

Price Action: Apple shares closed almost 10.5% higher at $425.04 on Friday.