“We had an idea with the certified pre-owned phones and we are working with the government on that,” he said, talking about how the tech giant was “thinking through its supply chain piece in India”.
“There is some misunderstanding if 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,” he said.
Explaining why their certified pre-owned iPhones were not equivalent to dumping, Cook gave the analogy of the automobile market in many where there is “a certified pre-owned market for Lexus, BMW and many other brands.”
“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,” he added.
Cook emphasised that the certified pre-owned iPhone was something that the company does in many other countries, including the US.
But Cook also clarified that Apple will not pander to the market by making cheaper iPhones. “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 that the pre-owned iPhones will help them reach customers who really want an Apple device, “but can’t reach that point”.
He also said it was clear that going forward Apple will need a retail presence and the company is working on it.