India thwarts Apple's plan to sell cheaper refurbished iPhones

NEW DELHI — India has rejected Apple’s request to import and sell refurbished iPhones to the world’s second largest mobile population, dealing a blow to its plans to court price-conscious consumers there.

The company’s application has been turned down, a telecommunications ministry official told reporters in New Delhi on Tuesday (May 3). He declined to be identified because of official policy.

The decision — the second time Apple has been refused by the government in as many years — involved several ministries as well as the Prime Minister’s Office.

Apple’s rivals had mounted a public campaign against the effort, arguing that such a move would trigger a flood of used electronics while defeating the government’s Make-in-India programme to encourage local manufacturing.

The decision is a setback for Apple, which has just 2 per cent of Indian phone sales but needs to tap new markets as global iPhone sales plateau.

The American company is also seeking permission to open its first Indian retail stores, key to driving its brand in a market dominated by local vendors. That decision is pending.

India is a challenging market because of the iPhone’s premium pricing but bringing in refurbished phones would have allowed Apple to attract the cost-conscious customers. The company typically does not lower prices, in order to maintain its marquee image. BLOOMBERG