India rejects Apple's request to sell refurbished iPhones

In February this year, Apple had sought permission from the Indian government to import and sell used (refurbished)  iPhones in India. Now it appears that the Indian Telecommunication Ministry has rejected Apple's request to sell refurbished iPhone in the country. Bloomberg citing an unnamed telecom ministry official, reports that the government has turned down Apple's application to sell refurbished iPhones in the country.

Apple is looking forward to open retail stores throughout the country to expand its market presence, and selling refurbished products was part of the strategy. One of the reason for the proposal to be rejected is due to India's rules against importing used electronics. "India does not encourage dumping or recycling of hazardous materials," said a telecom ministry official.

Reports suggest that after Apple requested the government to sell refurbished products in India, the company's domestic rival rallied against it, as Apple's move could trigger a flood of used electronics in the country, which will defeat the Indian government's Make in India initiative to encourage local manufacturing.

The decision is a setback for Apple, which has just two percent of Indian phone shipments. The new comes after Apple announced its earnings for the financial year Q2 2016. For the first time in 13 years, the company's profit dropped due to poor iPhone sales, however, Apple's iPhone sales in India were up 56 percent. CEO Tim Cook also said that Apple see a huge market potential for its products in India.

The rejection of Apple's request to sell refurbished products will do damage to the company's plan to expand its market presence in the country. Notably Apple sells its refurbished iPhones, iPads and Mac in its home country U.S for quite sometime now.

Source | Via