keep your used iphones outta here —

Report: India won’t let Apple sell refurbished iPhones in the country

Apple is competing with multiple established competitors with dirt-cheap phones.

The iPhone SE is Apple's best cheap iPhone ever, but in India even it may be too expensive.
Enlarge / The iPhone SE is Apple's best cheap iPhone ever, but in India even it may be too expensive.
Andrew Cunningham

The Indian government won't allow Apple to sell refurbished iPhones in the country, according to a "telecommunications official" speaking to Bloomberg. Apple is currently working to open retail stores in India to expand its market presence, and selling low-cost refurbished iPhones is another part of that strategy. Apple's opponents claim that allowing the company to sell used phones in the country could undermine the successful government-sponsored "Make in India" program, which encourages companies to manufacture their products in the country.

As Apple's iPhone growth slows, the company will be looking to new markets to fuel future growth—the strategy certainly worked in China, where Apple's sales grew by leaps and bounds in 2014 and 2015 before leveling off and declining in the first two quarters of 2016.

"India will be the most populous country in the world in 2022," Apple CEO Tim Cook told CNBC's Jim Cramer in an interview yesterday. "And this year, the first year, LTE begins to roll out. And so many of your viewers here in the United States, they're used to using LTE and streaming video. And hopefully they're getting a good experience there. In India you can't do that long—there is no LTE. And so that's changing. Huge market potential."

The ability to sell refurbished phones in India would have helped Apple compete better with the flood of low-cost phones from Xiaomi, Lenovo, and any number of local companies that already dominate the market. Apple typically relies on its upscale brand and tightly integrated ecosystem to attract consumers rather than competing exclusively on price. India is a poorer country, however, and the average selling price of phones in the country is much lower than in China.

Channel Ars Technica