Apple’s Strategic Move to Break into Indian Market Backfires | TechTree.com

Apple’s Strategic Move to Break into Indian Market Backfires

Apple seeks to import and sell refurbished phones in India.

 

In an attempt to break into the world’s second largest smartphone market, Apple Inc seeks permission to import and sell used phones which has irked domestic market players.
This is Apple’s second attempt in seeking permission which was previously denied by the Environment Ministry in 2015.

Apple currently owns a mere 2 per cent of the Indian market despite its growing demand and is keen to explore the potential Indian market as Apple has witnessed a sluggish market in China and the US. The company’s move has evoked strong responses from domestic players and the Consumer Electronics and Appliances Manufactures Association (CEAMA) has written to the government lobbying to reject Apple’s permission. Apple would be the first ever company to sell refurbished phones in India.

Is India the quintessential dump yard?

Industry pundits have warned the government against the threats of e-waste generation and disruption of the domestic market. Most imported phones would require to use replaced batteries which is viewed as an environmental threat. India’s woes of tackling e-waste will worsen if refurbished phones flood the market.

Apple is one of the most expensive smart phones and the Indian market has no dearth of smartphones that are affordable to the average Indian. However, the age old Indian pretentious fascination for expensive brands might work in Apple’s favour as people would prefer to own a priced brand at cheaper rates. “Even if the refurbished iPhones are priced a bit more than INR 10,000 ($150), that will hurt our sales because Indians may choose Apple for its snob value,” said Hasija of Karbonn.

Make in India imitative has been gaining momentum and domestic players would aggressively defend their interest with a tinge of patriotism. “Why even consider allowing import of used phones when import of other used goods such as cars are precluded by 300 per cent duty levies?” asked Ravinder Zutshi, chairman of the newly formed Mobile and Communications Council, which issued the letter. The group’s members include the largest Indian phone brands: Micromax, Intex and Samsung.


TAGS: Apple, Apple iPhone

 
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