Tech

Apple scraps plans to refurbish iPhones


Apple has rejected plans to sell refurbished iPhones in India after the government rejected its application to import such phones over concerns about the generation of e-waste, two people aware of the development said.

“The refurbishment story is over. It is no longer part of the India roadmap,” a senior executive familiar with the iPhone maker’s plans, one of the two cited above, said on condition of anonymity. made in India to make their phones more affordable.

Apple has been negotiating with the government for the past few years to allow it to import and sell used iPhones, which it calls ‘pre-owned and certified’, at a time when it is struggling price expansion. – The Indian smartphone market is sensitive.

However, it does not guarantee approval as government rules do not regulate the importation of used devices. Allowing Apple would open the door to the potential for dumping of used phones into India by other companies, resulting in massive amounts of e-waste.

“The plan was scrapped. No intention of staying here,” a second person said, requesting anonymity.

Queries to an Apple India spokesperson have not received a response since Friday evening.

“Apple is aiming to expand its market share with refurbished phones because once smartphone users start using older iPhones, it greatly increases the likelihood of users upgrading to another iPhone, can be refurbished or new. It’s a strategy that can help them lock users into their ecosystem, says Navkendar Singh, vice president of device research at IDC India, South Asia, Australia and New Zealand.

He added that while Apple will earn additional revenue from services based on device sales in refurbished phones, it will go head-to-head with the government’s Made in India plan.

Apple currently makes 60% of the 4.8 million iPhones sold in India that are made domestically through major global contract manufacturers such as Foxconn, Wistron and Pegatron, which are increasing capacity. According to research firm TechArc, by 2022, around 7 million iPhones are expected to be sold in India. .

Experts note that the tech giant is creating alternative production lines for China, where it has operations serving the global market.

Apple may have a small share of the overall smartphone market, but it’s the second-biggest seller in the world Segment 30,000 and above, closely following Samsung, as of June 30. It led above The 45,000 price segment, considered ultra-premium, as of the end of June, according to Counterpoint Research data.

According to a report from IDC, new iPhones with a higher average selling price of $700 or more are out of reach for the mass consumer segment, and because of the aspirational value that comes with it, it captures a high market share. disproportionate in the second-hand market. “Apple is already among the top two brands by volume on the Cashify platform, and their share of the refurbished market has only increased over the past two or three years. By value, the iPhone is the best-selling item on our platform,” said Nakul Kumar, co-founder of Cashify, India’s largest seller of refurbished phones.

Apple’s iPhone 7 is the main phone model acquired by Apple, with 23% market share in 2021, even 16% of all phones acquired by Cashify are iPhones.

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