The Government of India has rejected Apple’s request to sell refurbished iPhones in India, according to a recent report from Bloomberg. Quoting a telecom ministry official, the report said that Apple’s application has been turned down.
Apple was looking forward for an approval for selling refurbished iPhones in India since February this year. The company had sought permission from the government to import pre-owned iPhones for sale in India. A previous application by Apple was also rejected by the environment ministry on grounds that this would add to the local e-waste burden as the phones would be close to end of life. The company had previously claimed that refurbished iPhones are not second hand devices and are made by the original equipment manufacturers and thus they come with the same quality assurance as the new devices. They even boast of one year warranty and sport a new serial number and IMEI number.
The decision is a setback for Apple, which has just 2% of Indian phone shipments. Apple revealed in its earnings for the financial year Q2 2016 that iPhone sales were up 56% in India from a year ago. The iPhone and iPad maker had filed a proposal with DIPP at the beginning of this year following which the company resubmitted the proposal with necessary changes and additions in March. Last week, DIPP panel recommended to exempt Apple from 30% sourcing condition for retail stores. Last month, telecom minister, Ravi Shankar Prasad said that Apple is evaluating investment options in the country.