Indian government turns down Apple request to import used iPhones for sale, report says

The Indian government has reportedly denied Apple's application to import and sell refurbished iPhones, in a step that may hinder the company's ability to gain traction in the cost-sensitive local smartphone market.

The supposed decision was shared by an unnamed official from the telecommunications ministry on Tuesday, according to Bloomberg. The claims have yet to be substantiated and the Indian government has not offered an official statement on the matter.

Apple made a similar request in 2015, but had that one turned down by the environment ministry.

Apple's attempt at importing used phones was strongly opposed by major players in the local smartphone industry, including Intex, Micromax, and South Korea's Samsung, which leads in device sales. The worry was that allowing used iPhones in would trigger a flood of used smartphones in general, and also defeat Prime Minister Narendra Modi's "Make in India" campaign, intended to spur local manufacturing.

Despite some gains in 2015, Apple has had a tough time in India. The company controls under 2 percent of the Indian smartphone market, something attributable to the high price of iPhones in a place where most phones are less than $150. Until earlier this year, the iPhone 5c and even the iPhone 4S were still on sale in the region in a bid to offer anything cost-competitive.

New iPhones are largely out of reach for the average Indian. Even the iPhone SE, often seen as a "budget" alternative to the iPhone 6s, still starts at 39,000 rupees, or about $587.

In a Monday TV interview, Apple CEO Tim Cook suggested the company might turn Indian sales around thanks to LTE deployments, and a belief that India's younger population wants "the best" products available.

67 Comments

damonf 14 Years · 230 comments

About 8 years ago

sog35 said:

Cook needs to build some phones in India.

That would be a smart move and give Apple more leverage against China.

But the Chinese could then say, "You move any iPhone manufacturing out of China into India, you can kiss iTunes Movies, etc. in China goodbye". The problem is with India's protectionism. Rather than get their population growth under control like China did with its "one child per family" policy, India thinks it can get the rest of the world to solve all of its current and future unemployment issues (just like Trump plans to force Apple to bring manufacturing back to the U.S.). Maybe the U.S. should slap some tariffs on India's "remote IT services and support" sector. That might get them to realize they can't play one-sided (all take, no give) in the world economy.

monstrosity 17 Years · 2227 comments

About 8 years ago

sog35 said:

Cook needs to build some phones in India.

That would be a smart move and give Apple more leverage against China.

Sounds like a good idea to me

bkkcanuck 9 Years · 864 comments

About 8 years ago

dick applebaum said:

Mm ...

Why not refurbished the phones in India?

They would still have to import the used phones..... otherwise they have had to sell the new ones first.

I always knew there is something wonky with India with regards to importation of electronics. It is funny seeing Indians in a hotel here, I remember seeing tour groups of Indians and they would each of purchased one TV (or maybe someone else has and is using the tour company to import) - and you will see 50+ TVs ready to go to the airport to go back to india with the tour group.

dick applebaum 17 Years · 12525 comments

About 8 years ago

bkkcanuck said:

dick applebaum said:

Mm ...

Why not refurbished the phones in India?

They would still have to import the used phones..... otherwise they have had to sell the new ones first.

I suspect that Apple and India could cut a deal to remove tariffs on used phones shipped to India for refurbishment in India ... And sold wherever ...