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Apple CEO Explains How Pre-owned IPhones Are Different
Apple is looking at India as an investment destination and to increase the sales of its products. Apple Inc CEO Tim Cook told his India team to recreate the global Apple Store experience in the country and build new benchmarks for both sales and after-sales services through such flagship outlets. He also wanted to clear misconceptions about refurbished iPhones. The Apple CEO said the company will not flood the country with its company-owned stores since it does not want to damage the existing distribution network comprising thousands of neighbourhood mobile retail stores, large retail chains and franchise-owned Apple exclusive outlets. Instead, Cook told his India team to build Apple Stores in key markets such as the metros and where there is a significant young population with high aspirations and disposable. In an Interview with Indian Express, Tim Cook told that the company’s plans to sell certified pre-owned iPhones in India did not amount to dumping, and there had been a misunderstanding that these were ‘refurbished’ products. Last month reports claimed the Indian government had rejected Apple’s plans to sell these pre-owned iPhones, and it was viewed as dumping of electronic waste in the country. However the Apple CEO said, the company is still working with the government on the scheme.
“There is some misunderstanding that is refurbished, and it is not that at all. These are things we do in the US, Japan and pretty much every country in the world. And so that would be bring a level of operational responsibility and training into the country, which I think is really important,” Tim Cook said. He also added “When you buy a high-end smartphone you can expect the same kind of a situation there. In fact, ours is better than the automobile because we give the same kind of guarantee, as we take the product and sort of make it in a pristine manner, and we are certain of the quality and that is why we pass the warranty along,”. Also Apple will not pander to the market by making cheaper iPhones.
In India, cheaper smartphones tend to drive bulk of the sales volume, while Apple’s iPhones carry a premium price-tag. “We are about making the best products, and we are not going to lower the bar, and say we will reduce our standard to make another product. That is not who we are and that is not something our customers expect from us,” he replied, when asked if Apple planned to counter the budget segment in India with the pre-owned iPhones. Cook said pre-owned iPhones will help them reach customers who really want an Apple device. He also said it was clear that going forward Apple will need a retail presence, and the company is working on it. “Again, we are looking at it from many different angles and not solely from a market point of view,” he added.