 "Apple distributors warn Indian retailers against diverting stocks to Russia")
Apple’s official distributors have warned Indian mobile phone retailers, stating that they will face heavy penalties if new iPhones, especially those from the iPhone 17 series, are activated with foreign Subscriber Identity Module (SIM) cards within 90 days of purchase, MoneyControl reported. This move aims to prevent the illegal diversion of phones to grey markets.
According to the report, distributors told retailers that if any phone sold from their shop is found to be activated with a foreign SIM within 90 days, a big fine will be charged. However, the exact amount remains unclear. They also said that the retailer’s store code may be blocked in such cases, according to Apple’s policies.
Why is Apple taking this step?
This decision aims to stop the diversion of iPhones to other high-profit international markets such as Russia, Africa, and the Middle East. This grey market movement is causing supply shortages in India. According to the report, iPhone 17 models are disappearing quickly from Indian stores because retailers are sending large quantities to overseas markets where profit margins are higher.
Experts estimate that 3-5 per cent of total iPhone exports come from unofficial channels, and nearly half of these go to Russia, where Apple stopped operations after the Ukraine war. In October alone, Apple’s iPhone exports reached $1.6 billion, which is almost one-third of India’s total smartphone exports, MoneyControl said.
Grey market diversion causing shortages
Due to this diversion, India is now facing serious shortages of iPhones, especially the iPhone 17 models with 256GB and 512GB storage. According to media reports, Apple has sharply reduced the cashback offer on the new iPhone 17 series, from ₹6,000 earlier to only ₹1,000 now, making the phones more expensive for buyers.
Right after the festive season, Apple cut the discounts, which means customers now have to pay more for the latest iPhones. Both online and offline retailers, including Flipkart and Amazon, are seeing limited stock. According to TechStory, many store owners have confirmed that the base models are either completely sold out or available in very small numbers.
In India, the official price is ₹82,900, but the export price reaches ₹88,500, which is even higher than the MRP. iPhones from abroad often come with extra accessories worth ₹4,000-₹5,000.
Grey market diversions, however, are not limited to Apple. Several Samsung Galaxy devices are also diverted to non-priority markets, the report said.
Retailers say rules are unfair
Retailers claim that these rules are unfair because they mainly target small stores, while big-format retail chains and distributors do not face the same restrictions. One retailer told MoneyControl anonymously that parallel exporting is not just done by small outlets, but also through all channels, including online sellers.
Apple CEO Tim Cook also admitted supply problems during the company’s recent earnings call. He said Apple faced shortages of many iPhone 16 and 17 models due to strong demand. MoneyControl reported that the supply situation is expected to improve by December.