Apple’s plan to sell refurbished or used iPhones is facing stiff opposition from local players such as Samsung, Micromax, Intex and Karbonn.
According to a report by Bloomberg, Apple had applied to become the first company to import and sell used iPhones in 2015, but the environment ministry had rejected its request. “Why even consider allowing import of used phones when import of other used goods such as cars are precluded by 300 percent duty levies?” asked Ravinder Zutshi, chairman of the newly formed Mobile and Communications Council, which issued the letter.
Currently, Apple’s application has gone to so-called inter-ministerial discussion, said Asha Nangia, a director in the Department of Electronics & Information Technology. The government could chose either way, however, it could face a great encounter from local opposition.
At the moment, Apple own less than 2 percent of the Indian market. The report points out that by selling cheaper re-furbished devices “can help convert price-sensitive consumers, who previously would have had to fork over a month’s earnings or more to own the coveted brand.”