India rejects Apple's plan to import used iPhones

The Dollar Business Bureau

A plan to import refurbished iPhones by Apple Inc has been rejected by India, say sources in the telecommunication ministry.

The news comes as a setback for American multinational technology company that has been looking to revive the declining sales of its flagship smartphone industry. Apple witnessed the first-ever decline in iPhone sales due to weak demand in China, its largest market after the US.

Apple Inc usually sells its refurbished iPhones at a discounted price in several countries, including the US. The approval to import used iPhones in India would have probably helped the company to increase its share in the world as India is one of the fastest growing markets of smartphones in the world. It would have also been a show of intent to its competitors offering much cheaper phones.

However, a source from the telecom ministry said, in order to boost the effectiveness of its manufacturing sector under the 'Make in India' scheme, India has declined the company’s proposal, citing that its rules were against the imports of used electronics.

On the other hand, domestic phone manufacturers have also opposed Apple's proposal as they claim that selling refurbished iPhones would go against the country’s anti-dumping rules.

Apple just has around 2 percent share in the smartphone market in India, and is striving to tap the world's third-largest smartphone market. The US Company does not yet have an Apple Store in India and is seeking approval to open its first retail store, which is vital to expand its brand presence in a market majorly dominated by domestic vendors.

To successfully exploit India's growing smartphone market, Apple needs a better presence in retail and reasonable versions of its flagship phone.