Indian government publicly rejects Apple's desire to sell used iPhones
Despite a recent trip by Apple Chief Executive Tim Cook to meet with local officials, the Indian government on Monday announced that it will not allow the company to sell refurbished iPhones in its country.
India's minister of commerce and industry, Nirmala Sitharaman, held a press conference on Monday to announce the government had rejected Apple's request, according to Live Mint. Apple had been hoping to gain traction in the emerging market by selling more affordable, refurbished iPhones.
"We are not in favor of any company selling used phones... however certified they may be," Sitharaman said.
It's been a rough few weeks for Apple in India, where its plans have been met with resistance from local officials. Last week, the country's finance minister reiterated that Apple must source at least 30 percent of its components locally, if it hopes to open retail outlets in India.
Sitharaman also commented on the retail issue in Monday's press conference, saying that although the government might be open to waiving the 30 percent requirement, the finance ministry "has taken a different position." Sitharaman said she and the finance ministry will continue to consider the issue.
The rejections come on the heels of Apple Chief Executive Tim Cook's own trip to India, where he took in local sighs and met with officials, including Prime Minister Narendra Modi. Coinciding with the visit, Apple announced it will open an iOS design and development accelerator in the country in 2017, while the company also launched a Maps development center in the town of Hyderabad.
India's minister of commerce and industry, Nirmala Sitharaman, held a press conference on Monday to announce the government had rejected Apple's request, according to Live Mint. Apple had been hoping to gain traction in the emerging market by selling more affordable, refurbished iPhones.
"We are not in favor of any company selling used phones... however certified they may be," Sitharaman said.
It's been a rough few weeks for Apple in India, where its plans have been met with resistance from local officials. Last week, the country's finance minister reiterated that Apple must source at least 30 percent of its components locally, if it hopes to open retail outlets in India.
Sitharaman also commented on the retail issue in Monday's press conference, saying that although the government might be open to waiving the 30 percent requirement, the finance ministry "has taken a different position." Sitharaman said she and the finance ministry will continue to consider the issue.
The rejections come on the heels of Apple Chief Executive Tim Cook's own trip to India, where he took in local sighs and met with officials, including Prime Minister Narendra Modi. Coinciding with the visit, Apple announced it will open an iOS design and development accelerator in the country in 2017, while the company also launched a Maps development center in the town of Hyderabad.
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"Xiaomi which had earlier sought waiving the 30% local sourcing norm has now written to the department, saying it does not need the waiver as it has started manufacturing in India. However, the proposal is to be sent to the finance ministry, he added.
Another Chinese mobile company LeEco has also sought a waiver of the 30% sourcing norm."
Not for India.
There are a lot of rules in this world that look ridiculous to outsiders, but might not be so from a different perspective.
Take for example, the spouse's of H1-B visa holders in the US not being allowed to work anywhere. Isn't that exactly the opposite of wanting women's lib? seriously, what are the poor wives of these workers supposed to do, just sit at home and cut carrots? I know proper working women who had to cut short their careers just to support their husband's career. Its ridiculous but it is the law of the land in the USA.
(Add: As an aside, this is why the granting of MFN to China some years ago was such a big deal).
Notice that both Xiaomi and Samsung are reported to have invested in plant and equipment along with local hiring just to sell to the Indian market. Hundreds/thousands of other companies have probably done the same. There's advantages to their economy when manufacturing facilities are built within the borders and use India labor isn't there, one of the biggies being that less of India's spending gets sent out of the country. They're relatively poor unlike the US and Europe.
If India wants to join the first world they have to avoid protectionist reactionism and consistently enforce impartial laws that do not favor local industry over international companies. Why do you think India has such a huge brain drain the the US? Because there are far greater opportunities here--companies can invest without the fear that the government with come after them with a grudge.
Or did I misunderstand?
Its the same to various degrees everywhere, but especially in countries with opaque, large and complex bureaucracies.
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Protectionists policies are rarely if ever fair;
if there were, they would be no need to make a show of turning down Apple and scmoozing the political establishment would make no difference either.
Apple I thought had scratched enough backs to get something but it seems they haven't applied to right incentive yet (yep, that's how it really goes there and most everywhere).