Apple iPhone Prices Surge in India Could Trigger First Sales Decline

Apple’s latest iPhones are significantly more expensive in India than in several other markets, raising concerns among retailers as the company prepares for a potential decline in annual iPhone sales.\

---

The latest iPhones from Apple are finally here, but their pricing in India is already creating quite a stir. Apple has officially launched its new iPhone models in India as well as on a global level last week and has also introduced its very first foldable iPhone, called the iPhone Duo. While the launch of these models generated a lot of buzz due to their designs and various innovative features, the pricing discrepancy of these iPhones in India compared to other countries seems to be generating a lot of concern too.

iPhone Duo may be the best example of this disparity in pricing. According to Apple, the price tag for their first foldable iPhone is Rs 2,99,900 in India, taking it very close to the Rs 3 lakh mark. While the price of the same phone in America is $1,999 or approximately Rs 1.9 lakh, the disparity becomes even more noticeable when compared to other international markets. For instance, the price of the same iPhone Duo in the UAE is around Rs 2.2 lakh, with eligible customers being able to claim a VAT refund by leaving the country.

Some older iPhone models have seen an increase in prices in India by Apple Inc. The original launch price of the iPhone 17 was Rs 82,999. However, Apple has now increased the price of the device to Rs 99,900, bringing the old device to the verge of crossing the Rs 1 lakh psychological limit. Although Apple Inc. has increased prices for its products in the US market as well, the increase in price has been quite more in India than the US. The reported increase in the price of the iPhone 17 in India is said to be 20.5 percent, while in the US it is 12.5 percent.

The unusually high price of the products seems to be making Apple retailers nervous in India. As per a report in Economic Times, the iPhone 18 Pro series and iPhone Duo models will help India see its first-ever annual fall in iPhone sales. IDC and Counterpoint research firms are also projecting a low single-digit fall in Apple's iPhone sales in India.

The first and foremost challenge facing the retail firms would be the choice made by the wealthy Indians of purchasing the phones from overseas due to the difference in pricing in favor of overseas destinations for the same. For instance, in the case of UAE, the price at which the iPhone Duo is sold is quite low compared to India. Moreover, the possibility of receiving a VAT refund further increases the disparity between the prices.

Usually, the launch of the new iPhone series is taken advantage of by customers buying the earlier generation iPhone models at reduced prices. Therefore, it becomes extremely crucial for the company during the festive season to launch a new model of the phone as the old models start to become cheaper. But in this case, this may not happen because of the increased pricing across all the phone models.

This means that not only is Apple under pressure but that the smartphone market in India itself is under pressure. This makes the company's pricing strategy even more relevant because of rising memory costs and price hikes in all segments of smartphones. As it is, Apple has launched newer iPhone versions that will further increase the difficulty of persuading consumers in India to upgrade.

It will be seen how much the price hikes affect demand now that the newest models of Apple iPhone have been out in the market. The iPhone 18 Pro will be launched in India on September 18, whereas the iPhone Duo will be available for pre-orders starting October 16 followed by sale starting October 23. If the pricing difference persists, Apple's first foldable iPhone will see massive interest but will make India one of the most expensive places to get one at the same time.

Therefore, in the next few months, it will be a test for Apple. This brand has come up with a premium product in the foldable phone segment, but it is possible that the price might decide whether Indians choose the iPhone Duo or turn to other foldable phones in international markets. The fact that retailers are already worried about their sales and market research firms foreseeing a drop makes it clear that this new pricing strategy may affect Apple’s standing in the Indian premium smartphone market more than expected.