iPhone 17 series in India: Attractive pricing, but steep premium stays

Other offerings priced attractively, iPhone 17 starts at Rs 82,900

Apple Inc has unveiled its latest iteration of the iPhone, introducing the entry-level iPhone 17 at a starting price of around ₹82,900, powered by 256GB of storage — a reduction of roughly ₹7,000 compared to the launch price of the iPhone 16, which debuted at ₹89,900. Yet, despite these devices bearing the “Made in India” label, local consumers continue to pay a steep premium compared to their counterparts in the US, where the same models are exported. 

The Cupertino-based company has made efforts to absorb some costs, including depreciation and taxes, but the price gap remains stark. 

This time, Apple has shifted strategy, launching all models beginning at 256GB, unlike the iPhone 16 range, where only the iPhone Pro Max started at that capacity, while others began at 128GB. The iPhone 17 Pro and Pro Max are priced around ₹5,000 higher than their predecessors, marking a modest increase of less than 4 per cent. 

Adding to its portfolio, Apple has introduced the slimmest iPhone yet under the “Air” moniker, priced at ₹119,900, while quietly retiring the iPhone Plus model from the lineup. 

Take the iPhone 17 Pro Max with 256GB storage: It retails for $1,199 in the US, equating to approximately ₹1,05,677 at current exchange rates. Including an average 5 per cent local sales tax — which varies by state between 0 and 10 per cent — a US customer ends up paying between ₹1,10,904 and ₹1,16,244.  In India, however, the same device carries a steep price tag of ₹1,49,900, compounded by an 18 per cent GST.

 

Similarly, the new iPhone Air, priced at ₹$999 (around ₹88,018), comes to roughly ₹92,000 after 5 per cent tax in the US, while Indian buyers must shell out ₹119,900.

 

Explaining the price disparity, Tarun Pathak, research director at Counterpoint Research, cites three key factors: The high GST on smartphones in India, the rupee’s depreciation, and import duties on components used for local assembly. A senior executive at a mobile EMS player adds, “Unlike in India, where Apple Inc faces an 18 per cent GST for phones sold domestically -- even those manufactured here -- US customers face local sales taxes ranging from 0 to 10 per cent, and in Dubai, there’s zero duty.” Crucially, import duties on components, absent in China or Vietnam, inflate the bill of materials by 5–6 per cent, costs that must be passed on to Indian consumers, while export duties are refunded.

 

Despite this, Pathak remains bullish on Apple’s India prospects. “Momentum will continue, with India now offering the widest range of iPhone models globally. It’s destined to be their fastest-growing market,” he asserts, pointing to a current market share of 7 per cent by volume and 23 per cent by value. By Q4FY26, Apple is expected to top value rankings in India.

 

As for consumer impact, Pathak notes: “Around 60–65 per cent of iPhone buyers opt for EMIs, making any price increase almost invisible to them. Plus, demand for older generation iPhones remains strong.” Apple sweetens the deal further with trade-in offers ranging from ₹3,590 to ₹64,000, significantly lowering upfront costs, and no-cost EMI plans up to six months. Card payments through banks such as American Express, Axis, and ICICI offer instant cashback of roughly ₹5,000.