Apple’s reputation for control and high-handed business tactics has hit Australia again, sources say, as the tech giant prepares to roll out its latest iPhone, Apple Watch, and AirPods lineup.

Retailers including JB Hi-Fi and Harvey Norman have reportedly been told that Apple products will carry a razor-thin margin of just 4%—a stark contrast to the 40% typical of other brands. For many, this is a bitter pill, even as the new launches are expected to drive significant foot traffic.

“Apple is the brand we’d love to drop because of the low margins,” a Harvey Norman franchisee told ChannelNews. “The only reason we stock it is that the products bring customers in, and we hope to sell them accessories, covers, or financial packages.”

Carriers like Telstra, Vodafone, and Optus are facing the same squeeze, forced to accept minimal profits on one of their most popular product lines.

Yesterday, Apple unveiled its iPhone 17 series, including the ultra-thin iPhone Air, which boasts a 5.6mm “space grade” titanium frame. Retailing in Australia from A$1,799, a 4% margin means a retailer makes just $71.96 per device. Apple also introduced the iPhone 17 Pro, a new AirPods Pro, and an Apple Watch with a blood pressure monitor.

“We’re taking the biggest leap ever for iPhone,” CEO Tim Cook said during the Cupertino launch event.

Experts say Apple’s direct-to-consumer model and premium branding put retailers in a bind: ditch the products and risk losing foot traffic, or accept low margins and hope for accessory and service sales to make up the difference.

Some, like Myer, have previously opted out of Apple to focus on higher-margin items, but major players like JB Hi-Fi, Harvey Norman, and mobile carriers continue to play ball—despite concerns that lower-cost models like the iPhone Air could cannibalize sales of more profitable high-end devices.

Apple did not respond to requests for comment.