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Indian government publicly rejects Apple's desire to sell used iPhones

Despite a recent trip by Apple Chief Executive Tim Cook to meet with local officials, the Indian government on Monday announced that it will not allow the company to sell refurbished iPhones in its country.

India's minister of commerce and industry, Nirmala Sitharaman, held a press conference on Monday to announce the government had rejected Apple's request, according to Live Mint. Apple had been hoping to gain traction in the emerging market by selling more affordable, refurbished iPhones.

"We are not in favor of any company selling used phones... however certified they may be," Sitharaman said.

It's been a rough few weeks for Apple in India, where its plans have been met with resistance from local officials. Last week, the country's finance minister reiterated that Apple must source at least 30 percent of its components locally, if it hopes to open retail outlets in India.

Sitharaman also commented on the retail issue in Monday's press conference, saying that although the government might be open to waiving the 30 percent requirement, the finance ministry "has taken a different position." Sitharaman said she and the finance ministry will continue to consider the issue.

The rejections come on the heels of Apple Chief Executive Tim Cook's own trip to India, where he took in local sighs and met with officials, including Prime Minister Narendra Modi. Coinciding with the visit, Apple announced it will open an iOS design and development accelerator in the country in 2017, while the company also launched a Maps development center in the town of Hyderabad.



51 Comments

ireland 17436 comments · 18 Years

The store rule is totally ridiculous.

gatorguy 24627 comments · 13 Years

ireland said:
The store rule is totally ridiculous.

At least the sourcing rule is applied fairly (?) across the board and other companies can request waivers. From the AI source article:

"Xiaomi which had earlier sought waiving the 30% local sourcing norm has now written to the department, saying it does not need the waiver as it has started manufacturing in India. However, the proposal is to be sent to the finance ministry, he added.

Another Chinese mobile company LeEco has also sought a waiver of the 30% sourcing norm."

anantksundaram 20391 comments · 18 Years

Honestly, I am failing to see why this spat about used phones such a big deal on all sides. Really, do we think that this is somehow the centerpiece of Apple's long term entry and growth strategy into the seventh largest -- and one of the fastest growing -- economies in the world?

anantksundaram 20391 comments · 18 Years

ireland said:
The store rule is totally ridiculous.

It may be, but the rules are what they are, and it applies to everyone equally. This is the reality of doing business globally. Rules tend to different in different places. 

MacPro 19845 comments · 18 Years

I have no idea and am just asking.  Does Europe and the USA have the same or similar reciprocal conditions with Indian products in our trade deals?