The latest Apple financials revealed a 16 percent YoY drop in iPhone sales, and the company seems to be looking at new markets such as India and China to overcome this slowdown. However, one of its plans to increase sales in India has now been rejected by the country's government.
Apple traditionally relies on carrier partnerships to sell its devices at subsidized rates in most countries. In India, this system is non-existent and consumers buy their devices unlocked from retail stores. The company is handicapped here, as the latest iPhone range costs upwards of $800 and even the cheaper iPhone SE is priced at around $525 in the country. As a result, the iPhone market share in the world's second largest smartphone market is reported to be just two percent.
To boost sales in such a situation, Apple was planning to introduce refurbished devices in the country. It has now been reported that the company has failed to secure permission from the Indian government to import and sell refurbished devices in the country. The report also mentions that local manufacturers protested against the company's plan, as it could increase the inflow of used goods in the country and defeat the government's "Make in India" program.
Apple is getting closer to launching its retail stores in India. However, failure to find a solution to its pricing problem could continue to hinder its growth in the price-sensitive market.