The Indian government has responded to Apple’s offer of importing and selling second hand phones, clearly stating that it won’t allow India to become a dumping ground of hazardous electronic waste. The decision might have put the smartphone maker in a difficult situation. Indian market has plenty of potential and looks like Apple won’t be able to capitalize on it.
The Company’s expansion plans in the subcontinent are put on a hold after the setback. India is one of the fastest growing economies and has a huge potential in the smartphone industry. This is not the first time when Apple is facing a problem importing the refurbished or pre-owned certified iPhones in a country where consumers highly price conscious.
Reports say that the Department of Electronics and Information Technology have expressed their views to the environment ministry, and did not support the idea of importing second-hand products in the country. Apart from the government, the local smartphone makers had opposed Apple’s proposal arguing that it will have an adverse effect on the government’s Make in India initiative, which is aimed at promoting the local manufacturing.
The Cupertino giant’s current share in the Indian market is about 2% by volume. In an interview with CNBC the company’s CEO Tim Cook said that Apple sees a “huge market potential in India, and People really want smartphones there”. This statement is very well backed up by the statistics as there has been a 56% increase in iPhone sales from a year ago.
Not only in the premium segment, but also in the mid-range segment i.e. $300 (Rs.20000) the iPhone maker has been able to capture a larger piece. It is on the verge of closing the gap with its biggest rival and the current market leader Samsung. Apple’s market share of the mid-range segment in the first quarter of 2016 more than doubled as compared to last year’s. Samsung saw a major decline in the same.
Apple promises of “great innovation” in the coming years and is convinced that it will catch the attention Indian market