What is the harm in buying Apple's refurbished phones?

Shreya Sinhamoneycontrol.comLast week, the Commerce and Industry Minister Nirmala Sitharaman rejected Apple's proposal to sell refurbished iPhones in India.

But hasn't India always been a market for second-hand phones and so what is the great harm in buying refurbished products?

First up, refurbished products aren’t the same as second-hand products. There is a difference. When a buyer returns a mint-condition product, usually an electronic item, back to the seller or vendor, it is tested for defects and resold. These then become ‘refurbished’.

As such there are a number of online companies in India which are into this business of selling refurbished products of top brands.

One such seller is GreenDust, which offers refurbished products along with world-class warranty and after-sales service. It is continuously on the lookout for factory seconds and refurbished products from big online marketplaces like Flipkart which would have had a number of perfectly new products returned to them.

GreenDust website says the following: “We negotiate best prices on such (refurbished) products and pass on the savings to our customers. With all these advantages, buying Refurbished Factory Seconds is a Smart Alternative."

The current price of an iPhone 5S is around Rs 29,000, while GreedDust offers it for Rs 17,000.  

In the case of Apple, the biggest plus is its brand name and its to-die-for design. Let’s not forget Apple has clearly said that unlike second-hand or other refurbished handsets, it will give a warranty to customers. The iPhones will be available at cheaper rates also.

As per a IAMAI report, the total number of handsets launched in India in 2015 was over 2500, in all the three segments -- high-end, mid-range and low-end. And, given the very low disposable income of a large number of people in India, people tend to use and throw low-end handsets, thereby taking the replacement cycle to as low as 8-14 months.

These second-hand mobile phones are readily available at half or three-fourths the price of a sealed product. They are claimed to be as good as new, but come with the seller's warranty, instead of the manufacturer's warranty.

So when India doesn't mind a second-hand version without warranty from the manufacturer, would it hurt if we bought Apple’s 'refurbished iPhones'.