The Economic Times reports that Cook made the blunder while visiting an authorised Apple retail store at Galleria market in Gurgaon last Friday. As he browsed the store, he spotted a turquoise-coloured iPhone case, sold with what appeared to be official Apple packaging.
The colour option isn’t sold in every market worldwide. The packaging may also be different in some regions such as India. Whatever the reason, Cook pointed at the colourful accessory and asked out loud whether it is “counterfeit.”
The remark sent store staff “into a tizzy” as they attempted to verify the authenticity of the case. Cook apparently demanded an on-the-spot explanation for the “counterfeit” product. The accessory turned out to be genuine though, relieving the store team and product supplier and embarrassing Cook.
Apple has not confirmed whether the event took place as reported. While a CEO can’t be expected to memorise the details of every product sold, publicly identifying an official accessory as counterfeit highlights how Apple is faced with waves of fake products in emerging Asian markets.
Tim Cook is eager to expand Apple’s presence in India, growing its market share as it has in China. Apple doesn’t have its own stores in India though, instead relying on authorised dealers to sell, repair and service its high-end products. Because the part network is less robust than in established regions, it is relatively easy for dealers to buy fake products, selling them on for a substantial profit.
India currently represents just 1 percent of global iPhone sales. The iPhone starts at around 39,000 rupees in India, far beyond the budget of a typical consumer. The majority of smartphones used cost less than 5,000 rupees, around $75.
During his trip, Cook met with a number of technology influencers in India, including top distributors of Apple products. He also discussed Apple’s plan to sell refurbished pre-owned iPhones in India with Prime Minister Narendra Modi. Two weeks ago, the company’s proposal was dismissed amid concerns it would lead to excess electronics waste.
India is now the fastest growing smartphone market in a time when global sales are stagnating. Apple is no longer immune from the effects of the market and recently posted the first decline in iPhone sales in the company’s history. Some analysts have speculated that the iPhone 7 could be a “disappointment” that would drive Apple’s sales back to 2014 levels.
