Apple iPhone sales fall up to 30% as high prices curb festive demand

Apple's iPhone sales in India fell by up to 30 per cent around Dussehra. Higher prices, fewer offers and cautious spending could keep Diwali demand subdued.

In Short

• Shipments expected to decline double digits in 2026 after record 2025 sales
• Retailers report inventory build-up due to weaker festive demand and fewer offers
• iPhone 18 Pro and Duo face supply shortages with high grey-market demand

Apple’s iPhone sales in India fell by up to 30% around Dussehra, with retailers expecting demand to remain subdued during Diwali as higher prices, fewer promotional offers and cautious consumer spending weigh on purchases, reported Moneycontrol.

iPhone shipments in India are also expected to decline by double digits in 2026 from a record 14.3 million units in 2025, with the second half of the year likely to drive the contraction.

The slowdown comes despite the launch of the iPhone 18 Pro series and the new iPhone Duo. Retailers said price increases across older models and the latest devices have made consumers more cautious, while longer replacement cycles are delaying purchases.

“Retailer feedback points to softer sell-through, which is consistent with the price increases and the lack of festive offers. We expect festive demand across the market to be subdued this year,” Upasana Joshi, an analyst at International Data Corporation (IDC), said.

Sanyam Chaurasia, an analyst at Omdia, quoted in the report, said higher prices across older models and the iPhone 18 Pro series were weighing on demand. He added that the absence of a new base iPhone 18 launch in September had also affected festive momentum, with some demand likely to shift from the fourth quarter to the first quarter of 2027.

RETAILERS FLAG INVENTORY BUILD-UP

Retailers and distributors had stocked up ahead of the festive season in anticipation of stronger sales. However, weaker sales have left excess inventory in distribution channels, particularly for older iPhone models, including the iPhone 15, 16 and 17 series.

Some retailers have also faced pressure from currency fluctuations and import challenges, with traders holding back sales to avoid losses on inventory purchased at unfavourable exchange rates. Retailers, however, said weak consumer demand remained the primary concern.

The report said the withdrawal of some financing and discount schemes had further affected sales of older models. A later Diwali has shifted some festive purchases into October, making it too early to assess the season’s overall performance.

IPHONE DUO FACES SUPPLY SHORTAGE

While demand for older models has weakened, the iPhone 18 Pro and Pro Max have faced supply shortages. The new iPhone Duo has also seen limited availability despite interest from customers.

Retailers estimated that only 6,000-7,000 saleable units of the Duo were initially supplied. Some said they received just five to seven units against expected orders of 100, while customers were reportedly willing to pay premiums of Rs 25,000 to Rs 1 lakh to secure the device.

The iPhone Duo starts at Rs 2,99,900 in India, compared with $1,999 before taxes in the US. The price difference and limited availability have reportedly encouraged grey-market imports from Dubai, affecting authorised retailers.

The All India Mobile Retailers Association (AIMRA), which represents more than 1.5 lakh mainline mobile retailers, said demo units of the Duo had been distributed across outlets, but saleable stock remained limited. It also alleged that distributors were requiring retailers to purchase older iPhone models to secure allocations of newly launched devices and called on Apple India to conduct mystery audits.

APPLE RETAINS PREMIUM MARKET SHARE

Despite the slowdown in festive sales, Apple continued to hold a strong position in India’s premium smartphone market. The company had a 27% share of the Indian smartphone market by value in the June quarter, according to IDC.

Higher prices are, however, narrowing the pool of consumers able to afford its devices, while the continued performance of older iPhones is encouraging buyers to extend replacement cycles.

Globally, some customers have reported cracking of the iPhone Duo’s inner screen. Apple has acknowledged a problem affecting a small number of units and advised customers to contact AppleCare for a replacement. Retailers said no such cases had been reported in India so far, although limited availability makes it too early to draw conclusions about the issue in the country.

- Ends