Apple’s plan of selling refurbished iPhones in India has met with denial from the Indian Telecommunications ministry. The US tech giant was planning to expand its market share in the Indian subcontinent by targeting the cost conscious consumers but India rejected its proposal as it was against its “Make in India” agenda and could have proved fatal to the Indian manufacturing industry. Already the tech giant’s rival mobile companies like Micromax and Samsung are violently protesting to the sale of used iPhones in the Indian market as it can mean an end to the Government’s “Make in India” campaign. So, the telecommunications ministry considered it best to reject the iPhone recycle plan and maintain peace in the mobile industry.
We all love iPhones and we would give anything to show off that signature symbol on our palms. Had the Indian Government conceded to Apple’s iPhone recycle plan and allowed the company to import refurbished iPhones in India, people would have flocked to buy cheap iPhones which would have flooded the market. Thus, other national companies that are working hard to gain platform in the smartphone industry, would have suffered a set back. Thus, the telecommunications ministry deemed it best to reject the proposal. The Apple officials refused to comment on the same.
What is the telecommunications ministry saying?
According to NN Kaul, a spokesperson of the telecom ministry, India does not allow dumping of waste or already used materials. Apple’s iPhone recycle plan was based on exporting used iPhones to India which would have contradicted this approach and this is the reason why it was rejected. Furthermore, the government is also boosting its Make in India campaign to enhance competitiveness in its manufacturing industry and import of used Apple iPhones is strictly against this principle. Keeping all these factors into consideration, the telecom ministry decided to reject Apple’s iPhone recycle plan for the benefit of national manufacturing unit.
Why did Apple decide to use the Indian smartphone market in the first place?
India’s smartphone market is soaring in leaps and bounds. It has already reached 24.4. million, an increase of 12% percent in 2016 which is a huge scope to invest in it. Thus, Apple saw in it a great opportunity to flag its iPhone sales in a country where US electronic devices are suffering a general set back against the top vendors of the mobile market like Micromax, Samsung, Lenovo, Intex and Lava. However, Apple’s iPhone recycle plan to sell used iPhones strictly contradict the basic rules of the Indian Government that doesn’t allow dumping of used electronics in the market. So, if Apple needs to invest in the Indian mobile market, it has to think of a better plan of action.
What is the current status of Apple iPhone market in India?
Apple contributes to about 2% of iPhone sales in the Indian mobile market. The sale of iPhones have increased in 2016 by 56% mainly because of the cheaper old generation devices like the iPhone 5S but the newer devices like iPhone SE has not seen much growth in sales. Apple stands only second to Lenovo’s 63% growth in the list of top 10 mobile vendors in the country. It is said that Apple is all set to challenge Samsung’s smartphone market. Also, Apple is planning to set up its own store in India with the approval of the government, of course.
Although Apple’s initial iPhone recycle plan in the Indian mobile market has suffered a blow, but this should not be taken as a lost game. Apple still has huge scope to fare well in the India market as Indian people love the brand. So, are you thinking of buying the latest Apple iPhone? Why should you choose Apple over others? Let us know your opinions in the comments section below. Have a great day!