Friday, December 27, 2024

Soon, pre-owned imported iPhones may sell in India

Saturday, March 5, 2016, 0:04
This news item was posted in Business category and has 0 Comments so far.

NEW DELHI: Apple has sought permission to sell imported pre-owned certified iPhones in India, a development seen as another attempt by the smartphone maker to dig deep into the country which is increasingly becoming crucial to its growth. “An application from Apple regarding import of certified pre-owned iPhones for sale in India and manufacturing certified pre-owned iPhones for sale in India has been received in the ministry of environment and forests,” telecom minister Ravi Shankar Prasad said in Rajya Sabha on Friday. The government has not taken any decision on the matter, the minister said. Apple had made an application on December 7. A similar proposition by Apple earlier last year, where it had sought approval to sell pre-owned and certified 1 lakh iPhones and 2.5 lakh iPads in India, was turned down by the ministry on grounds that it would add to India’s e-waste. The ministry had, however, said imports of less than three year vintage, with at least five years of possible residual life, may be allowed. Apple sells refurbished iPhones in certain markets, and its move to take the same route in India explains the Cupertinobased company’s intent to strengthen its toehold in the country which has become the world’s second largest smartphone market by unique users in 2015, surpassing the US, and next only China. “Apple is now realigning its strategy to capture young audience through discounting previous flagships or selling pre-owned iPhones,” said Tarun Pathak, senior analyst at Counterpoint Research. He added that the strategy is needed because India is a highly price-conscious market with 70% smartphone sales being less than $150, unlike in the US and China. “The ideal price point for Apple will be $250-$300 for selling the pre-owned devices,” Pathak said. Pre-owned market is about 10% of the total smartphone market, by volume. The South Asian nation which did not figure among the priority countries for Apple is now the most promising, exemplified by a 38% increase in revenue, albeit on a small base, in the October to December period. This is higher than other emerging markets and Greater China, Apple’s second-largest market after the US. iPhone sales volumes grew 76% in India, again higher than developed markets, a feat that Apple CEO Tim Cook recognized. The California-based company has also sent an application for approval to the Department of Industrial Policy and Promotion (DIPP) for setting up its retail outlets in India, while it will build a technology development centre in Hyderabad with $25 million investment, where about 4,500 people are likely be employed.

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