Apple’s strategy to sell refurbished and older models of its iPhone in the Indian market may be the only way the company can sell its phones in volumes in the country.
Indian users are very price-sensitive and the market for the high-end phones sold by Apple cannot be large, said Kiranjeet Kaur, research manager at IDC Asia-Pacific.
The Chinese experience cannot be replicated in India because per capita incomes are not very high in the country, Kaur said. Import taxes on smartphones are also high and the U.S. dollar has been strengthening against the Indian rupee.
Apple has invested in distribution channels in more cities in the country, and started selling old models of its phones. Still, it sold less than 1 million phones for a 3 percent share of the Indian smartphone market in the fourth quarter, Kaur said.