Apple’s attempt to sell used iPhones in India met different speculations and criticisms as most of its local rivals defied the plan of the tech giant over the weekend.
Considering that India is the second-largest mobile market, a lot of of industry executives encourage the government to decline the request of the American tech company.
In a letter released to the media, Ravnder Zutshi, Chairman Mobile and Communications Council questioned the attempt of Apple to import and sell refurbished phones. The chairman stressed out why they (the government) should not allow import of used phones when import of other goods such as cars are precluded by 300 percent duty levies.Mobile and Communications Council is composed of the biggest phone brands in India such as Samsung, Intel and Micromax.
The authorities which are against the movement of Apple restated the initiative of Prime Minister Narenda Modi to push local manufacturing in India. Meanwhile, a research director at Counterpoint research said that this attempt of the company is tied on its strategy as the smartphones market peaks in the country in the next few years.
Additionally, most its local rivals would not want the permission to be granted to Apple since it can put the local market at risks and might open the door for potential damage to the environment due to electronic waste.
Sunil Vachani of Dixon Technologies stated that millions of imported used phones will need their batteries replaced and he questioned where will those batteries go. He also reiterated that he is against any change in policy with regard to import of refurbished mobile phones.
For the record, four out of every five phones sold by Apple in India cost less than $150 while the branded smartphones are customer friendly at $35. Market experts believed that a number of foreign companies are on the move to make an Indian version of their phones as they widen their target customers. Relatively, the sales of Apple in India last holiday season went up to 76 percent.
Apple, which has at least 2 percent of the Indian market, may be hitting two birds at the same time if it will be given the permission to sell used phones in India. First, it won’t sacrifice the value of its prime products and second this might be the way to expand its market in the country.
Prior to the plan of the iPhone maker, it introduced its newest iPhone with an introducing price of $399. In relation to this, it might have 10 million worth of iPhone sales in 2017 . The market analysts thought that Apple might be using this strategy to back up its sales for the year as most of them estimated a lower income for the company.
On a lighter note, Apple celebrated its 4Oth year of providing one of the most innovative technological products. The firm happened to be the most valuable public corporation worldwide with $53 billion profit the previous year. The majority of the revenue of the company was generated from the sales of iPhones globally and as far as the market estimate is concerned, there are about 1 billion Apple devices sold around the world.
During the session earlier, Amazon traded higher at 598.50, an increase of 4.86 or 0.82 percent with a market capitalization of 279.42 billion dollars. The stock opened at 590.49 with an intraday high of 599.03 and an intraday low of 588.30. Currently it has a price earnings ratio of 482.61.
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