Apple’s distributors have issued stern warnings to Indian mobile phone retailers and stores, threatening hefty penalties if newly sold iPhones—especially the iPhone 17 series—are activated with foreign SIM cards within 90 days of purchase, according to MoneyControl.“If any device sold from your outlet is found to be activated or used with a foreign SIM within this 90-day period, a high penalty will be imposed on your outlet, and the store code may be blocked as per policy,” the distributors’ communication warned, as reviewed by MoneyControl.The crackdown comes as iPhone 17 models virtually vanish from Indian shelves, with units being diverted in bulk to high-margin destinations across Russia, Africa, and the Middle East.
Grey market exports drain domestic supply for iPhone 17 models
Industry estimates suggest 3-5 percent of total iPhone exports come from non-official shipments, with almost half headed to Russia, where Apple halted operations after the Ukraine war. Apple’s iPhone exports hit $1.6 billion in October, making up nearly a third of India’s total smartphone exports, MoneyControl reported.The grey market diversion has created acute shortages, particularly for the base iPhone 17’s 256GB and 512GB variants. According to MoneyControl, Apple slashed bank cashback offers from Rs 6,000 to just Rs 1,000 on the iPhone 17 series from November 22, citing supply constraints.While the India price is Rs 82,900, the export price reaches Rs 88,500—above MRP—with devices often bundled with accessories worth Rs 4,000-5,000, sources told MoneyControl.
Indian retailers push back on Apple’s “unfair” mandate
Retailers argue the mandate unfairly targets them while exempting large format stores and distributors. “The parallel export issue is not just a mainline retailer issue and involves all channels, including online,” one retailer told MoneyControl anonymously.Kailash Lakhyani of the All India Mobile Retailers Association said “millions of phones are being exported every month,” causing fiscal benefits meant for domestic consumers to be misallocated. He noted this leads to losses through cashback claims and GST drawbacks.Apple CEO Tim Cook acknowledged supply constraints during the company’s recent earnings call, stating they faced shortages on several iPhone 16 and 17 models given strong demand. The supply situation is expected to stabilise by December, sources said.
