An attempt by Apple to increase its market share in India by selling old iPhones in the country is receiving some opposition, from its main rivals. Apple wants permission to import used iPhones for sale in the country, but other mobile phone manufacturers have complained to the Indian government to put a stop to the plan before it gets started, protesting that it goes against one government program to encourage local production, among other issues.
Apple's request for permission is the second attempt to sell used iPhones in the region,
reports Bloomberg, with a previous attempt last year failing to take off. If Apple does become the first company permitted to import used phones in India, it could help Apple take on the local market more effectively by selling lower-cost versions of more-current devices that directly compete with other low-cost smartphones already on sale. Recently, it
ceased selling the iPhone 4s and iPhone 5c in the country via official channels.
Aside from directly complaining to the government, opponents of Apple have also set up the Mobile and Communications Council, with Micromax, Intex, and Samsung said to be members alongside other Indian phone producers.
Currently, Apple owns less than two percent of the market in India, where around 80 percent of smartphones cost less than $150, and with branded smartphones starting from $35. Since some goods are sold by manufacturers at a reduced price in the country compared to the rest of the world, Apple is claimed to be trying to avoid being seen selling a sub-premium device by providing pre-used iPhones cheaply.
Other smartphone producers have already protested to the government, claiming it goes against Prime Minister
Narendra Modi's Make in India program, which is meant to encourage the local production of goods. "Make in India could turn into Dump in India," claims Indian producer Karbonn Mobiles chairman Sudhir Hasija. Karbonn and other companies are stepping up their efforts in the region under the scheme, with used device imports potentially reducing the revenue generated with local manufacturing.
Another point made against Apple's import plan is the generation of electronic waste, both from replacing certain components before resale, and the shorter lifespan of resold devices compared to new versions. "The millions of imported used phones will need their batteries replaced. What will happen to those batteries, where will they go?" asks Dixon Technologies chairman Sunil Vachani. Lastly, manufacturers are also worried about the potential damage to sales caused through the availability of cheap iPhones.
It remains to be seen if the Indian government will accept or deny Apple's used iPhone request, but the company is still planning to take on the local smartphone market directly. Apple has
submitted plans to open its first retail stores in India, and though the country has rules that make store ownership by foreign companies difficult to set up, it
appears the government is getting closer to relaxing the regulations to let the store proposal proceed.
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