• $
  • €
  • ₽
  • ₺
  • £

India rejects Apple's plan to import used iPhones

India rejects Apple's plan to import used iPhones
05.05.2016 18:32
India has rejected a plan by Apple Inc to import used iPhones, government officials said on Wednesday, a blow to the U.S. tech giant that has been seeking to revive waning sales of its flagship smartphones.

Apple sells what it calls refurbished iPhones at a discount in some countries, including the United States. Extending this practice to India would have likely helped it increase its share in one of the world's fastest growing smartphone markets against competitors with much cheaper offerings.

But India, which is pushing a 'Make in India' initiative to boost the competitiveness of its manufacturing sector, rejected the proposal citing rules against importing used electronics.

"India does not encourage dumping or recycling of hazardous materials," NN Kaul, a spokesman for the telecom ministry said.

Apple's proposal was opposed by domestic phone makers who claim selling refurbished iPhones - devices that have been returned by buyers or repaired to factory condition after damage - would breach India's anti-dumping rules. The Consumer Electronics and Appliances Manufacturers Association had written to India's telecom ministry to stall the move.

An Apple spokeswoman in Singapore did not immediately respond to an email seeking comment.

The news comes at a time when Apple posted its first-ever drop in iPhone sales amid weakness in China, its most important market after the United States.

In India, Apple only has about a 2 percent market share but its sales there surged 56 percent in the first three months, driven mainly by cheaper older-generation devices such as the iPhone 5S while demand for the new iPhone SE disappointed.

"The 5S' success in India has more to do with affordability of a premium brand than a preference for smaller phones, and the move to the more expensive SE will discourage budget buyers," said Wilmer Ang, an analyst at research firm Canalys.

The newly launched iPhone SE retails at 39,000 rupees ($585) in India - almost $200 higher than its U.S. price.

To successfully tap into India's smartphone boom - where sales are expected to grow 25 percent this year - Apple will need a better retail presence and cheaper versions of the iPhone given the average smartphone in the country sells for less than$150, according to analysts.

Apple, which currently retails in India through local partners, is already seeking government approval to set up its first store in the country.

(reuters.com)

www.ann.az
Facebook
Go
Similar news
Similar news
Central Bank of Azerbaijan Releases Official Exchange Rates for October 23
Business 11:00
Central Bank of Azerbaijan Releases Official Exchange Rates for October 23
Natural Gas Futures Drop on New York Mercantile Exchange
Business 10:30
Natural Gas Futures Drop on New York Mercantile Exchange
Brent Climbs Above $113, WTI Tops $100
Business 10:00
Brent Climbs Above $113, WTI Tops $100
Abortion Rates in Azerbaijan Rise 21.9% in 2025, Statistics Committee Reports
Business 16:59
Abortion Rates in Azerbaijan Rise 21.9% in 2025, Statistics Committee Reports
Armenian Deputy PM Visits Syunik for Trump Route Infrastructure Planning
Business 14:30
Armenian Deputy PM Visits Syunik for Trump Route Infrastructure Planning
Azerbaijan Sets Target for Transition to Electric Stoves in Residential Buildings
Business 14:00
Azerbaijan Sets Target for Transition to Electric Stoves in Residential Buildings
Brent surges to $110.84, WTI reaches $98.64
Business 13:00
Brent surges to $110.84, WTI reaches $98.64
Azeri Light crude climbs to $119.70 per barrel
Business 12:30
Azeri Light crude climbs to $119.70 per barrel
Gold drops to $4,106 per ounce on COMEX
Business 12:00
Gold drops to $4,106 per ounce on COMEX
Anews TV

Our official Youtube channel

Subscribe