“Make in India could become Dump in India”

Apr 4, 2016 09:35 GMT  ·  By

Apple’s plan to bring refurbished iPhones in India is heavily criticized by manufacturers building phones in the country, and in a recently-founded lobbying group, they are asking the government to reject the project and forbid used devices from being sold in the country.

Specifically, Apple was looking into ways to benefit from the growing market in India not only with price cuts for its existing models but also with more affordable devices, which could be sold locally as refurbished iPhones and imported from overseas.

But according to a group of smartphone makers which includes Samsung, Micromax, Intex, and Karbonn, such a plan would only put India’s environmental initiatives in jeopardy, claiming that selling used devices in the country would dramatically impact the environment.

In a letter sent to the Indian government, the Mobile and Communications Council would not only come in contradiction to India’s environmental efforts but also be against the existing regulations for imports.

“Why even consider allowing import of used phones when import of other used goods such as cars are precluded by 300 percent duty levies?” the letter reads according to Bloomberg.

Everyone would buy a used iPhone

“Make in India could turn into Dump in India,” Sudhir Hasija, chairman of Karbonn Mobiles, added. “Make in India will become a big zero,” he continued. Karbonn has a total of four manufacturing plants in India, all under this environment policy, and the company is getting ready to open a new one, only to comply with local requirements.

“The millions of imported used phones will need their batteries replaced. What will happen to those batteries, where will they go?” added Sunil Vachani, chairman of Dixon Technologies. “I am against any change in policy with regard to import of used phones.”

But without a doubt, in addition to opposing Apple’s plan on environmental grounds, local manufacturers are also afraid that refurbished iPhones would sell like hot cakes and thus have an impact on their own sales. Given Apple’s brand value, everyone expects Indians to purchase used iPhones and ignore the other “affordable” models manufactured locally.

“Even if the refurbished iPhones are priced a bit more than 10,000 rupees ($150), that will hurt our sales because Indians may choose Apple for its snob value.”