Defeats for Apple in China and India

Defeats for Apple in China and India

by Gary Oldwood on 17 June 2016 · 1497 views

1 full Defeats for Apple in China and India

Apple suffered two defeats, with the US giant losing in a confrontation regarding the use of the "iPhone" trademark in China, and saw its request for importing used iPhones in India get rejected.

More specifically, in the first case, the Chinese Xintong Tiandi Technology won the lawsuit against Apple regarding the sale of bags and other leather goods in which the name "IPHONE" is used. According to BBC, which cites the Chinese "Legal Daily", Xintong Tiandi had registered the IPHONE for leather products in China back in 2010. This newspaper is considered to be an official "instrument" of the Central Political and Legal Affairs Commission of the country.

This company sells bags and cases for mobile phones and other leather products with the name IPHONE. Apple appealed in 2012 to the Chinese authority responsible for trademark issues, however when this attempt failed, Apple turned to the Beijing court. When the company failed in there as well, it resorted to a higher-order court, which ruled that Apple was not able to demonstrate that it was widely known as a brand in China before Xintong Tiandi submitted its own brand request back in 2007.

As for India, the country's government rejected a plan for importing used iPhones: According to Reuters, Apple sells used ("refurbished") iPhones at a discount in some countries, including the USA. The extension of this practice in India would probably help increase its stake in one of the most rapidly growing smartphone markets, against competitors that offer much cheaper models.

However, the Indian government, which is promoting an initiative to enhance the competitiveness of the domestic construction industry, rejected the request, citing rules against the use of used electronic devices. Several domestic manufacturers had opposed this request, who claimed that the sale of used devices (which were returned by buyers or repaired after being damaged) violate the anti-dumping legislation.

In India, Apple has only a 2% share, but sales there had recorded a sharp increase in a time frame of just three months, mainly due to the increased demand for cheaper, older devices, like the iPhone 5S.

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