India rejects Apple's application to sell refurbished iPhone units in the country

India rejects Apple's application to sell refurbished iPhone units in the country
In the U.S., buying a refurbished handset isn't much of an issue. In India, however, Apple has to apply to import these previously used handsets into the country to sell. And Apple's application was flat out rejected. The same thing happened last year when the environment ministry turned Apple away. The company's goal is to sell lower priced handsets in what is the second largest mobile market in the world.

Apple has just 2% of the Indian smartphone market, and with the possibility that we have seen a short-term peak in iPhone sales during the calendar fourth quarter of 2015 (when 74.8 million units moved), selling refurbed iPhones in India could provide Apple with some incremental sales that could bolster Apple's top and bottom line, while smoothing out the decline in the product's sales.

Apple is also looking to open retail stores in India to help it compete with some of the local handset providers. But all of these plans are now in limbo following the rejection of Apple's application. Other handset manufacturers in India went public with their plea that the government prevent the used iPhone models from being offered in the country. They claimed that it would lead to a flood of used electronics imported into India, while at the same time it would go against the Indian government's program that highlights goods that are "Made-In-India."

Apple has decided not to comment on the rejection at this point in time.


source: Bloomberg

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28 Comments

1. kumarabhishek591

Posts: 150; Member since: Feb 22, 2014

Good move

2. natypes

Posts: 1110; Member since: Feb 02, 2015

Apple declined to comment b/c they're busy trying to figure out who they need to pay to get this accepted.

6. kiko007

Posts: 7493; Member since: Feb 17, 2016

*Slow claps in approval*

3. Firepower

Posts: 1; Member since: May 03, 2016

Jai Hind

4. Rydsmith unregistered

Because the Made in India programs has worked so well with the Freedom 251.... "We don't want to sell your products but we will offer you tech support. Thank you, please come again."

5. Kumar123 unregistered

I think its an excellent decision made by India government.

7. xq10xa

Posts: 810; Member since: Dec 07, 2010

Who lives in India anyway???? Oh that's right. Like 1 billion people.

13. siddharthayadav202

Posts: 286; Member since: Apr 23, 2016

In what world do u live? It was 1.2 in 2011. But what exactly you wanted to say through this comment?

8. Nopers unregistered

I'm sorry but why do people think it's such a good thing that Apple can't do this? Re-using is more economical than recycling and people in Europe, America and Australia aren't going to buy them.

10. DRS1977

Posts: 679; Member since: May 27, 2015

Apple is trying to dump all of their old garbage into India and they don't want that. How about Apple sell new stuff for more reasonable prices? Apple is the greediest and slimiest company on the planet.

14. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

isn't the consumers choice whether they want new or used? people buy used cars in India all the time. Let the consumers make the decision not some overreaching government.

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Are those cars made in India? It's not about them refurbished right? It because they are being furnished by outsiders. You claim is lame because if the car was once new and it never left the country, then it's not the same as a car company importing uses certified pre-owned cars into the country. It's that simple and you missed it.

19. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

B3cause using old hardware keeps the country on a technically lower level vs the US for example. These other countries need to move forward and catch up on the tech world and selling used garbage is not the answer. Apple could simply make an iPhone like Samsung John series. It could simply be a iPhone 5 inside a new case design as an alternative. Then they could sell it no problem. After all, they are practiced at sell regurgitated products in a repeat design. Are those phone all refurbished? Because I'm betting are plenty new ones that never sold in the first place.

23. saffant

Posts: 274; Member since: Jul 04, 2011

On a lower level? Are you retarded? It's because it will drive down sales of their own locally produced crappy handsets that people only buy because there's no other compelling alternative.

9. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Good.....Say NO to Apple!

11. jove39

Posts: 2146; Member since: Oct 18, 2011

I'd say Apple should be allowed to sell...and people be able to decide...if they want to buy used devices or not.

12. siddharthayadav202

Posts: 286; Member since: Apr 23, 2016

Ask them to sell junk from all over the world in your country. We already have huge e-waste to deal with. Its better that they are not allowed to add more.

16. jove39

Posts: 2146; Member since: Oct 18, 2011

Apple is already selling refurbished products all over the world. Read a review of refurbished mac here and decide - http://www.pocketables.com/2014/04/buying-refurbished-apple-worth-savings.html

15. Phantom1031

Posts: 264; Member since: Aug 02, 2014

Very wise step by Indian Government. If they are following a certain policy it must apply to all. Afterall they are the largest democracy in the world. Coming from A Pakistani

17. ThirdEye

Posts: 33; Member since: Oct 31, 2012

Very Poor article done with absolutely no research and finding what was Rejected. What APPLE wanted to sell is a) Import Refurbished phones from US/UK/EU and all over the world and sell it in India. b) Could not guarantee any Warranty or support. c) Wanted the Indian Govt to change its law which it has applies for all Imported Electronic goods They can still import "NEW" phones and sell them in India. If any "NEW" iphones are dysfunctional during the warranty period, they can provide a repair/replacement phone which can be a refurbished one. All they cannot do is to "IMPORT REFURBISHED PHONES and SELL IT TO THE LOCAL MARKET". If atleast they had promised a WARRANTY they have legs to stand on. So they just asked for permission to DUMP their goods. For all those Yahoos commenting on Apple Quality etc etc and how the free market works blah!blah! blah!. They can very much sell this phone cheap in the US/WEST/EU in EBay/Livingsocial/AFL. After all do we not have 1000s of sites that sell refurbished phones? Will they be Ok in importing Refurbished phones from China rather than importing a new one. If so Apple can use that model in the west. LOL!

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Thank you for showing us the facts. I read the source and I concur with the assessment of what happened Many just make assumptions on poor jounalism. It's seems since this was PA's beloved Apple, they would have tried to give more info, instead of making it look like India was blocking Apple for no reason. While most idiots come here to read post and star flame wars, most never read the source links for details. Refurbished should only be for warranty replacements However I don't have an issue with US carriers selling them at a discount.but I think used products should be sold 3rd party and not first party. Carriers really shouldn't sell them, but I see it as not being huge different from buying them on eBay. After all the carriers still has to activate it. But you get no warranty. When you get it from the carrier, the carriers provides its own warranty coverage which is equal to is a new phone stops working. They will.give you another refurbished. Apple tried to get over and India blocked it. Good move. I guess Apple will.need to take the 5S parts and make another 5C or a 6C and sell it in India.

28. ThirdEye

Posts: 33; Member since: Oct 31, 2012

Actually in India for whatever its faults, a phone can be "new" aka sold to the customer by the business channel for the first time, OR "Second Hand". There is no special status for "REFURBISHED". I will be with APPLE if they plan to introduce the concept of REFURBISHMENT with a reasonable warranty period. Or they can call it "CERTIFIED PRE-OWNED" and sell it in their stores. Not only here in PA but every area including other Tech sites like ARS, Verge as well as business sites such as Forbes, they either shoddily/purposefully misstate and pontificate on this topic with half-assed journalism. The only good article on the topic was in the Verge in the Forum by a user Mom024 http://www.theverge.com/2016/4/8/11390938/regarding-apples-india-situation Despite his clear writing style still there are some Chat warriors who still push rubbish by stating that the DIVINE RIGHT OF APPLE has been harmed :D

24. JustChill

Posts: 8; Member since: Aug 28, 2015

PA seems to have taken cue from paid Indian Journalists (Presstitutes)....

18. Ankit_27

Posts: 25; Member since: Feb 20, 2016

If Apple wants to sell it's products in developing countries, why doesn't it make an affordable product? It doesn't cares for people who have less money and then wants to sell old phones to them. It's questionable IMHO.

27. grbrao

Posts: 294; Member since: Nov 23, 2012

They made one affordable 5SE, but it is still not affordable in India, due to the import tax and may other companies eating in between...

20. cripton805

Posts: 1485; Member since: Mar 18, 2012

You people dont understand global economics. India is a self sustaining country. By allowing importing competitors products at lower rates, would slowly begin to ruin their economy. This would create more competition to the manufacturing and sales within their own country. It's like shooting yourself in the foot and allowing yourself to bleed out. It has nothing to do with the fact that its an "iPhone"

25. jaidhakne

Posts: 13; Member since: May 04, 2016

Here are lot of good android handsets like Samsung.. etc...at lower price..with better amoled screen..then who cares apple... this market is suitable for android.. we are thankful to android.. open source ..reachable to lower people...

26. kishore3k

Posts: 102; Member since: Mar 11, 2016

At the same time they are allowed to open single brand retail stores in India without 30% sourcing of components for their products

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