Apple is meeting a “wall of resistance” with its efforts to offer used iPhones in India, Bloomberg said.
While the US company is making its second attempt, having previously been rebuffed, it is now meeting a “growing number of industry executives” resistant to the move.
Government officials are being warned that the move would “open the floodgates to electronic waste, jeopardise local players, and make a farce of Prime Minister Narendra Modi’s Make In India programme to encourage local manufacturing”.
With iPhone growth slowing across existing markets, India represents an important opportunity for Apple. But the market is already competitive and price sensitive, meaning there is no easy path for the premium device maker.
But through its device upgrade plans, announced last year, the company will be gaining access to a significant stock of used iPhones. By taking the lead and offering these officially in India, it could both build a position in the market and cut off unofficial used iPhone channels.
A number of international players have ramped up their activities in the market, including the creation of manufacturing facilities, in order to benefit from the Make In India push. These organisations are now against the idea of Apple being able to import second-hand devices, with which to compete.
While used iPhones are perhaps not Apple’s ideal tool for India, it will enable it to come in at lower price points, acting as an “on ramp” for users who may then opt for new iPhones as they move up the ladder.