iPhone 17 Shortage Deepens in India as Retailers Divert Stock to Gray Markets

According to the report, Apple's official distributors have issued a warning to Indian mobile phone retailers that heavy fines will be imposed if new iPhones, particularly the iPhone 17 series, are activated using foreign Subscriber Identity Module cards within 90 days from the date of purchase. This is done to prevent the phone from being illegally diverted to the gray market.

Although the exact fine amount is unknown, Apple's policy mandates blocking the store code of the retailer in such a case. This is to ensure iPhones are not exported to high-margin markets such as Russia, Africa, and the Middle East. This gray market is leading to a supply shortage in India. According to the report, iPhone 17 models are rapidly disappearing from Indian stores as retailers are shipping large quantities of phones to foreign markets where profit margins are higher.

3 to 5 percent of total iPhone exports come through unofficial channels. Half of this goes to Russia, where Apple suspended operations after the Ukraine war. In October alone, Apple's iPhone exports reached $1.6 billion, representing one-third of India's total smartphone exports. This has led to a severe shortage of iPhones in India, especially the 256GB and 512GB iPhone 17 models. Apple has reduced the cashback offer on the new iPhone 17 series from ₹6,000 to ₹1,000, making the phones more expensive for buyers.

Just after the festive season, Apple significantly reduced discounts on several models. This means that customers will now have to pay more for the new iPhones. Both online and offline retailers, including Flipkart and Amazon, have limited stock. Many store owners have confirmed that the base models are either completely sold out or available in very limited numbers. Bureau, New Delhi. Apple's official distributors have warned Indian mobile phone retailers that they will face heavy fines if new iPhones, especially the iPhone 17 series, are activated with foreign Subscriber Identity Module (SIM) cards within 90 days of purchase. This is intended to prevent the illegal diversion of phones into the gray market.

While the exact amount of the fine is unclear, according to Apple's policies, the retailer's store code may be blocked in such cases. This is intended to prevent iPhone exports to high-profit markets like Russia, Africa, and the Middle East. This gray market is causing supply shortages in India. According to reports, iPhone 17 models are rapidly disappearing from Indian stores because retailers are shipping large quantities of the phones to foreign markets where profit margins are higher.

3 to 5 percent of total iPhone exports come through unofficial channels. Half of this goes to Russia, where Apple suspended operations after the Ukraine war. In October alone, Apple's iPhone exports reached $1.6 billion, representing one-third of India's total smartphone exports. This has led to a severe shortage of iPhones in India, especially the 256GB and 512GB iPhone 17 models. Apple has reduced the cashback offer on the new iPhone 17 series from ₹6,000 to ₹1,000, making the phones more expensive for buyers. Just after the festive season, Apple significantly reduced discounts on several models. This means customers will now have to pay more for the new iPhones. Both online and offline retailers, including Flipkart and Amazon, have limited stock. Many store owners have confirmed that the base models are either completely sold out or available in very limited numbers.

CEO Tim Cook also recently said that the company is facing shortages of several models due to heavy demand. The iPhone 17 is priced at ₹82,900 in India. However, the export price reaches ₹88,500, which is higher than the maximum retail price. iPhones imported from abroad often come with additional accessories worth ₹4,000-₹5,000. However, the shift to the overseas gray market isn't limited to high-end companies like Apple. Many of Samsung's Galaxy devices are also shipped to non-priority markets.