Sales Drop Around Dussehra Festivities

Apple’s iPhone sales in India reportedly decreased by up to 30% during the Dussehra period, with expectations of continued subdued demand during Diwali. Retailers attribute this decline to elevated prices, a lack of promotional offers, and cautious consumer spending habits. Analysts suggest that these factors have significantly impacted purchasing decisions.

According to a report by Moneycontrol, iPhone shipments in India are anticipated to decline by double digits in 2026, following a record 14.3 million units sold in 2025. The contraction is expected to be more pronounced in the latter half of the year. Despite the introduction of the iPhone 18 Pro series and the new iPhone Duo, the market has not responded as favourably as anticipated.

Feedback from retailers indicates a softer sell-through rate, which aligns with the price increases and the absence of festive offers. Upasana Joshi, an analyst at International Data Corporation (IDC), stated that the overall festive demand across the market is likely to be subdued this year.

Retailers Report Inventory Challenges

In preparation for the festive season, retailers and distributors had increased their stock levels, anticipating higher sales. However, the lower-than-expected demand has resulted in excess inventory, particularly for older iPhone models such as the iPhone 15, 16, and 17 series. This surplus has created challenges in managing stock effectively.

Additionally, some retailers are experiencing difficulties due to currency fluctuations and import complications. These factors have led traders to postpone sales to mitigate potential losses on inventory acquired at unfavourable exchange rates. Despite these challenges, the primary concern remains weak consumer demand.

The withdrawal of certain financing and discount schemes has further impacted the sales of older models. With Diwali occurring later in the month, some festive purchases have shifted into October, making it premature to evaluate the overall performance of the season.

Supply Issues for New Models

While demand for older iPhone models has waned, the iPhone 18 Pro and Pro Max are reportedly facing supply shortages. The new iPhone Duo has also experienced limited availability, despite significant interest from consumers. Retailers estimate that only 6,000 to 7,000 saleable units of the Duo were initially supplied, with some receiving as few as five to seven units against anticipated orders of 100.

Customers are reportedly willing to pay premiums ranging from Rs 25,000 to Rs 1 lakh to secure the device, which starts at Rs 2,99,900 in India, compared to $1,999 before taxes in the United States. This price disparity and limited stock have reportedly led to an increase in grey-market imports from Dubai, impacting authorised retailers.

The All India Mobile Retailers Association (AIMRA), representing over 1.5 lakh mobile retailers, noted that demo units of the Duo have been distributed, but saleable stock remains scarce. The association has raised concerns that distributors are requiring retailers to purchase older iPhone models to secure allocations of newly launched devices and has called on Apple India to conduct mystery audits.

Apple Maintains Strong Market Position

Despite the decline in festive sales, Apple continues to maintain a robust position in India’s premium smartphone market. According to IDC, the company held a 27% share of the Indian smartphone market by value in the June quarter. However, rising prices are limiting the number of consumers who can afford its devices.

The ongoing performance of older iPhones is encouraging buyers to extend their replacement cycles, further complicating sales dynamics. Globally, some customers have reported issues with the iPhone Duo’s inner screen cracking, a problem that Apple has acknowledged affects a small number of units. The company has advised affected customers to contact AppleCare for replacements.

Retailers in India have not reported any such issues thus far, but the limited availability of the iPhone Duo makes it challenging to draw definitive conclusions about the situation in the country.

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