Apple has hiked prices of iPhones in the range of 22 to 25%, sending a clear message to the buyers and the industry that contrary to popular belief previous models would not get cheaper. For example, iPhone 17 now costs ₹17,000 more and iPhone Air has become ₹30,000 dearer.
Offers are expected to dry up as well. The iPhone launch is a major annual event that feels like a festival right before India’s festive season. However, most eventually buy an iPhone once their finances allow.
Because they are inflation-prone, have access to financing and EMI options but, it is may dampen the upcoming festive season in India, it might not affect the potential iPhone buyers as much. As a result, sales volumes in general trade (mainline retail) have dropped 30%–40%, while organised trade has seen a 20%–30% volume drop even though retailers maintain healthy margins on older stock,” Kailash Lakhyani, Chairman AIMRA and President of Organised Retailers Association (ORA) said. Not only this, it will also give a free hand to Android players to further increase smartphone prices that have been going up since November 2025. Memory crisis is going to remain for next 2 to 3 years and device prices will continue to rise. “Prices of popular older and newer Android models have risen 40%–60%, with some entry-level models from Vivo and Realme increasing by up to 100%. On the other hand, budget-conscious buyers who cannot get device loans or afford new models turn to refurbished iPhones, or repair their existing devices to delay purchasing for 6 to 12 months. The September launch, combined with the upcoming festive season, generates the bulk of iPhone business in the premium segment, with 24-month no-cost EMI options making ownership accessible to many.
“During festive season, expect the market to see dip of as high as 50% if the prices keep on increasing like this,” Faisal Kawoosa, Founder of Techarc said.
Historically, new iPhone launches followed by the festive season double overall sales, as loyal Apple buyers upgrade regardless of price, driven by desire and aspiration.
“This huge price differential fuels the gray market and global-warranty imports in India. If Apple India cannot lower prices immediately, it must introduce attractive consumer offers. He added that international travellers from the U.S., Dubai, Hong Kong, and Bangkok regularly bring phones for personal use, friends, and family, dealing a direct blow to Indian retail sales. Following Diwali, severe price hikes will likely dampen market sentiment further, leading to lower shipments.
This year, the iPhone 18 Pro and Max models saw a jump of ₹30,000 in their base prices in India, which is 20% more than in the U.S. On top, Apple’s first foldable phone, the iPhone Duo , costs almost ₹3,00,000 in India, 33% more than the US. Prices in Dubai are roughly 15% lower across all new models. Otherwise, legitimate retailers, Apple Exclusive Stores, retail chains, LFRs, and the national exchequer face massive revenue losses, threatening Apple’s 15 years of hard-earned retail foundation in India,” Mr. Industry analysts project an overall shipment drop of around 25% by year-end, an estimate echoed by retail bodies like AIMRA and ORA.
“Supply needs to match demand in certain price tiers but muted entry level demand will bring the market down,” Tarun Pathak, Research Director at Counterpoint said. Lakhani said.
Would it impact Android players?
Consequently, imported units attract full import duty, making them significantly more expensive, along with GST and the impact of a weaker rupee. Pathak added. Entry segment has been worst affected; mid tier phones are seeing a mismatch in their price vs feature ratio. Only upper mid and premium segment continue to grow as a section of users are buying up the price tiers. “We are already seeing users pushing out their purchases and a lot will depend on the festive offers and supply. Pathak. Price hikes have become inevitable for this industry across price tiers. It’s not that only Apple has increased to this tune. There are instances where we have seen a steeper increase. We have seen so far, the price revisions haven’t affected iPhone sales. Apple has only seen growth in India and one can say this is the rising period of Apple in India. But even then, it’s in Apple’s kitty,” Mr. The blunder that Android brands could do in this wave is thinking of increasing prices further. For them, it will definitely pinch more, he added.
“India pricing is steep and the difference is primarily due to the fact that initial Duo sales will not be ‘Made in India’ for some time. So, in all, at 40%+ net impact, 18% GST and around 5-6% forex conversion,” Mr. Android players have been constantly raising prices since November 2025. Counterpoint estimates a 13% decline in volumes while value will still be up in single digits like 2%. “I think Apple will continue its momentum, albeit some buyers may settle for iPhone 17 series instead of 18 as it could pinch their pocket. Apple did not launch the iPhone 18 base and is expected to do it around March-April 2027.
Though other factors have come up like refurbished phones,” said Mr. Kawoosa said.
