Apple’s strategy of importing refurbished iPhones in order to capitalize on India’s booming smartphone market to offset its flagging sales did not take off. It will now have to find other means to remain competitive.
In a move that is likely to not go down well with Apple, which is struggling to revive the sales of its flagship iPhones, the Indian government has rejected its plans on importing used iPhones for sale in India.
In many countries, Apple sells refurbished phones at a discount. It had hoped to do the same in the booming Indian smartphone market, which is price sensitive, in order to compete against competitors who have a price advantage.
Citing rules against importing used electronics, India has rejected Apple’s plans. Furthermore, Apple’s plans are ill-timed as they are not in line with the Indian government’s ‘Make in India’ initiative, which aims to enhance local manufacturing competence.
“India does not encourage dumping or recycling of hazardous materials,” said NN Kaul, a spokesman for India’s telecom ministry.
A spokeswoman for Apple did not immediately respond to requests for comments.
In Indian, the price of an average smartphone hovers in the price range of $150 to $200. The suggested retail price of the iPhone SE is 39,000 INR, equivalent to $585. In the U.S the typical price of the iPhone SE is $399.
Refurbished iPhones are usually devices that have been returned by buyers or are repaired to factory condition after damage.
In order to boost its flagging sales, Apple had proposed to import refurbished iPhones and sell them here at significant price points. Doing so breaches anti-dumping rules.
The Consumer Electronics and Appliances Manufacturers Association had written to India’s telecom ministry to stall this move.
Categories: Regulations & Legal, Strategy
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