Apple India has come under fire for allegedly offering discriminatory cashback deals on its latest iPhone 15 models.
The All India Mobile Retailers Association (AIMRA), representing a significant number of mobile phone retailers across the nation, has accused the tech giant of engaging in discriminatory practices favoring certain payment methods and lenders, potentially excluding a large segment of the Indian customer base..
The controversy stems from Apple India’s partnership with select banks and financial institutions to provide cashback offers on iPhone 15 purchases. These offers, ranging from 5% to 15% cashback, are only applicable when using specific credit cards or debit cards issued by partner banks.
While Apple’s own stores and select large retailers are providing a cashback of up to Rs 10,000 on the iPhone 15 Pro and iPhone 15 Pro Max models, smaller retail channels are restricted to a cashback of only Rs 3,000 on the same models. This discrepancy has led to an outcry among small retailers, who believe that such practices could lead to unfair competition and erode customer trust in their businesses.
AIMRA has taken a firm stand against what it perceives as anti-competitive behavior, emphasizing the need for equitable business practices that do not favor a select few at the expense of the many. In a letter addressed to Ashish Chowdhary, Managing Director of Apple India, AIMRA has highlighted the potential risks to sales and the undermining of customer confidence that this cashback offer discrepancy poses.
According to a report by the Consumer Federation of India (CFI), a non-profit organization advocating for consumer rights, this practice unfairly disadvantages customers who do not have access to credit cards or who prefer using alternative payment methods like UPI or digital wallets.
The CFI report states, “Such discriminatory practices limit customer choice and create an uneven playing field, potentially nudging customers towards availing credit facilities they might not necessarily require.“
“These cashback offers are exclusionary and disadvantage a large section of Indian consumers who do not have access to credit cards or prefer other payment methods,” said a spokesperson for the CRA.
“Apple should ensure its promotional schemes are inclusive and cater to the diverse payment landscape of the country. While offering cashback incentives can be a legitimate marketing strategy, it should not come at the expense of inclusivity. Apple should strive to create programs that benefit a wider range of customers, irrespective of their preferred payment methods.”
Industry analysts further argue that such targeted cashback offers could distort the market and stifle competition. “By partnering with a limited number of financial institutions, Apple is essentially creating a closed ecosystem that benefits select partners at the expense of others,” said Mahesh Joshi, a tech industry analyst based in New Delhi. “This could potentially lead to unfair advantages for certain payment methods and hinder the growth of a healthy and competitive payments market in India.”
The iPhone 15 series, launched globally in September last year, has been well-received for its advanced features and performance. However, the current situation has cast a shadow over the brand’s retail strategies in India.
Apple India has yet to issue an official statement regarding the allegations. However, the company has a history of facing criticism for its pricing strategies and limited customization options in the Indian market.
