- Apple is trying to negotiate cheap rent for some of its retail locations in the UK, the Times reports.
- In some of its 38 stores across the UK, Apple is asking for a 50% rent reduction plus a temporary rent-free period, according to the report.
- Apple generated $58.3 billion in revenue in Q2 of this year.
- Visit Business Insider’s homepage for more stories.
Apple is trying to negotiate half rent in some of its UK locations, The Times of London reported on Sunday.
According to The Times, the tech giant is negotiating with landlords in some of its 38 retail locations across the UK to get a 50% reduction in rent plus a rent-free period in exchange for signing longer leases. This is reportedly because the company wants to be treated like other businesses which have been offered reduced or temporarily-free rent in response to the coronavirus pandemic decimating their revenues.
The Times said these negotiations applied to retail spaces where Apple still has several years left on the leases, meaning landlords don’t have to make an immediate decision.
Apple posted its fiscal Q3 earnings last week, beating Wall Street’s expectations with revenues of $59.7 billion — representing 11% year-on-year growth. This puts the firm in a much stronger position than most brick-and-mortar retailers, many of which have seen their sales nearly obliterated by the pandemic.
Per the Times, Apple posted UK sales of £1.4 billion ($1.8 billion) for 2019, and paid £6.2 million ($8 million) in taxes to the UK.
Apple declined to comment when contacted by the Times, and did not immediately respond to request for comment from Business Insider.
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