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Accusing Apple Of Dumping iPhones In India Oversimplifies The Situation

Ever wonder what Apple plans on doing with the one year old iPhones it's likely to get swamped with when its iPhone trade-in program starts to deliver a second round of devices to participating customers? Turns out that they are destined for the Indian market, if Apple gets its way, and that has local manufacturers up in arms.

It's not hard to see why. Having supported the Make In India program, OEMs can see their market being put at risk by sales of iPhones cast off by American users. Those OEMs are asking for import tariffs to be applied to the second hand devices in the same way as they are applied to new ones.

The risk looks much smaller than being suggested though. Apple is likely to value those second user phones at between $200 and $250. By the time you've allowed for shipping, wastage and refurbishing costs the likely street price in India is going to be closer to $300. Or about three times the $100 threshold where 90% of India's smartphone buyers deal.

So yes there will be an impact on the Indian smartphone market, but its effects aren't likely to be great.

However India has a responsibility to those manufacturers who have supported the country.  For that reason I suspect that the right decision is to reject America's cast-off iPhones, no matter how unpopular the decision will be with Indian consumers.


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