Monday, April 4, 2016

Apple's push to flood India with used iPhones ignites backlash

Apple Inc's latest attempt to crack the Indian smartphone market - by selling used phones - is meeting a wall of resistance.

The iPhone maker is seeking permission to become the first company allowed to import and sell used phones into the country, its second attempt in as many years.

This time, the stakes are higher and a growing number of industry executives are fighting the move, warning government officials in private that it'll open the floodgates to electronic waste, jeopardize local players, and make a farce of Prime Minister Narendra Modi's Make in India program to encourage local manufacturing.

"Make in India could turn into Dump in India," said Sudhir Hasija, chairman of Karbonn Mobiles, who said it sells about 1.7 million phones a month.

Apple's application in 2015 was rejected by the environment ministry without much fanfare.

But things have changed since: India, as the world's second largest mobile population, now represents a vast untapped opportunity for Apple just as China and the US are slowing.

Apple has publicly talked up its prospects in India and is on course to get the green light to open its first retail stores.

Sensing the threat, the electronics manufacturing industry's main representative body recently set up a lobbying arm that wrote directly to the government vehemently opposing Apple's application.

"Why even consider allowing import of used phones when import of other used goods such as cars are precluded by 300 per cent duty levies?" asked Ravinder Zutshi, chairman of the newly formed Mobile and Communications Council, which issued the letter.

The group's members include the largest Indian phone brands: Micromax, Intex and Samsung.

Apple's application has gone to so-called inter-m

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