Local government formally bans Apple from selling pre-owned iPhones in India
The most profitable company on the face of
the earth is confronted with a nearly unprecedented rough patch, as mobile
device sales in general and iPhone demand in particular appears to dwindle,
especially on the Western hemisphere.
China and India could come to Apple’s rescue,
at least until the radically redesigned AMOLED iPhone 7s of next year enters
the picture, but as long as Tim Cook refuses to “lower the quality bar” and
pander to budget-conscious audiences, share in the world’s two largest markets
is unlikely to dramatically build up.
Cupertino won’t be allowed favorable legal
workarounds anytime soon on Indian shores either, as its CEO’s much-hyped
recent visit failed to change Prime Minister Narendra Modi’s mind. Just as
suspected, the local government scrapped Apple’s refurbished iPhone import
initiative, with commerce and industry minister Nirmala Sitharaman on Monday
quoted as saying “we are not in favor of any company selling used phones in the
country, however certified they may be.”
That’s in direct response to Cook’s
assurances of the “pristine condition” pre-owned iPhones are sold in, with
promises of refurb treatments taking place in India doing little to appease
Modi. Fears of the “Make in India” program being turned into “Dump in India”,
as well as pressure from domestic and foreign Android manufacturers, ultimately
outweighed the obvious benefits of keeping a tech colossus like Apple happy.
Worse yet, Tim Cook can’t be certain of
receiving the green light for India-established Apple stores in the near future
either, as the 30 percent local sourcing norm is still in effect, and Foxconn
has a long way to go until starting to assemble iPhones in Maharashtra.
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