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India rejects Apple's refurbished iPhones. Again

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Staff writer ▼ | May 3, 2016
Apple's attempt to import and sell refurbished iPhones in India has been rejected by the Indian government for the second time in recent years.
Refurbished iPhones
Huge market   Plans to gain Indian customers not working well
The decision involved several ministries in addition to the Prime Minister's Office, and is a massive blow to Apple's plans to gain cost-efficient Indian customers.

India is home to the world's second largest mobile population, but Apple currently accounts for just 2% of India's phone sales.

The market has proved challenging for the tech giant due to the iPhone's premium pricing, but selling refurbished phones would enable Apple to attract new customers without lowering prices.

Smartphones priced at INR 13,000 or below account for 60% of the India smartphone market , as noted in a report available from Research and Markets, and Apple would most likely dominate this market if given the chance.

Rivals and competitors argued against Apple's request, claiming that it would flood the market with used electronics and defeat the purpose of the government's Make-in-India local manufacturing program.

The Indian government rejected a similar proposal a few years ago, and is still deciding if Apple should be allowed to open retail stores in the country.

The Indian Telecom Services market is expected to grow at a CAGR of 10.3% during the 2015-2020 period, according to a report available from Research and Markets, providing market participants with a strong and stable market.

The rejection prevents Apple from participating in related markets, such as the India E-commerce market which is projected to grow at a CAGR of 36% during the 2015-2020 period as forecast in an industry report.

Apple will continue to lose out on one of the world's fastest growing electronics markets for as long as the Indian government sees the company as a threat to national manufacturers and vendors.


 

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