Apple’s iPhone business in India is facing a challenging festive season, with retailers reporting that sales around Dussehra fell by as much as 30%. Higher device prices, fewer discounts and reduced financing benefits are making consumers more cautious about upgrading, even as Apple expands its premium lineup with the iPhone 18 Pro series and the new iPhone Duo.
The slowdown could interrupt Apple’s growth momentum in one of its important smartphone markets. Moneycontrol reported on October 27, 2026, that retailers and analysts expect iPhone shipments in India to decline by double digits this year, compared with a record 14.3 million units in 2025. However, the festive season is still underway, and the later timing of Diwali means the final impact on sales will become clearer over the coming weeks.
Key Takeaways
- Festive sales decline: Retailers reported that iPhone sales around Dussehra fell by up to 30%.
- Higher prices: Price increases across older models and new premium devices have reduced affordability.
- Fewer offers: Reduced discounts and financing benefits have weakened incentives for consumers to upgrade.
- Shipment outlook: Analysts and retailers expect Apple’s India iPhone shipments to decline by double digits in 2026, according to Moneycontrol.
- Supply constraints: Limited availability of the iPhone Duo and shortages of some premium models are restricting sales opportunities.
- Market uncertainty: Diwali demand could change the picture because the festive buying period has not yet finished.
Why Are iPhone Sales Falling in India?
The immediate challenge is affordability. Indian consumers have traditionally relied on festive discounts, exchange bonuses, cashback and instalment plans to make premium smartphones more accessible. This year, retailers say those incentives have been less generous, while prices for several models have increased.
According to Moneycontrol, retailers reported weaker demand for older devices, including the iPhone 15, iPhone 16 and iPhone 17 series, following price increases and the withdrawal of some financing and discount schemes.
This matters because Apple’s sales in India do not depend exclusively on buyers purchasing its newest flagship. Older-generation iPhones have also attracted customers who want the Apple ecosystem without paying the highest launch prices.
When discounts shrink, these buyers may postpone upgrades, continue using their existing phones or consider more affordable alternatives. As a result, the impact can extend beyond the latest premium models.
The broader smartphone market is also under pressure. Counterpoint Research expects India’s smartphone sales volumes during the 2026 festive period to decline by around 12% year over year, citing rising memory costs, higher device prices and longer replacement cycles. This suggests Apple’s challenges are part of a wider affordability problem rather than an isolated brand issue.
Source: Counterpoint Research.
Higher Prices and Fewer Discounts Are Affecting Buyers
Festive promotions usually help smartphone brands convert consumer interest into purchases. Bank offers, exchange programmes and no-cost monthly instalments can make a premium phone feel more affordable without requiring a large upfront payment.
This year’s market conditions have made that strategy more difficult.
| Factor | Impact on iPhone sales |
|---|---|
| Higher prices | Increase the upfront cost of upgrading |
| Fewer discounts | Reduce the savings available on older models |
| Reduced financing benefits | Make premium devices harder to purchase through instalments |
| Longer replacement cycles | Encourage consumers to keep existing phones for longer |
| Cautious spending | Push buyers to delay discretionary purchases |
Apple’s premium positioning may protect its pricing strategy, but it also limits the number of consumers able or willing to purchase its devices when household budgets are under pressure.
For buyers who already own a relatively recent iPhone, the decision to upgrade becomes harder if the new device offers improvements that do not justify the additional cost. Consumers may wait for a future model, a better offer or a more suitable time to replace their phones.
New iPhones Have Not Fully Offset the Slowdown
Apple has introduced new premium products, including the iPhone 18 Pro series and the iPhone Duo. However, the launches have not eliminated the challenges facing festive sales.
Moneycontrol reported that the absence of a standard iPhone 18 launch in September may have affected buying momentum. According to Omdia analyst Sanyam Chaurasia, some demand could shift from the fourth quarter of 2026 into the first quarter of 2027, when the base iPhone 18 is expected to arrive.
The timing of a product launch can influence purchasing decisions. Customers who are interested in a standard model may postpone their purchase if they expect a newer device to arrive soon. Others may choose an older model, depending on its price and availability.
Supply is another issue. Retailers told Moneycontrol that the iPhone 18 Pro and Pro Max were facing shortages, while the iPhone Duo had limited saleable inventory despite strong initial interest.
This creates a difficult situation for retailers: demand may exist for certain models, but limited stock prevents them from converting every interested customer into a sale.
iPhone Duo Faces Supply and Pricing Challenges
The iPhone Duo has attracted attention because of its premium positioning, but its high price and limited availability present obstacles in the Indian market.
Retailers estimated that only 6,000 to 7,000 saleable units were initially supplied in India. Some retailers said they received just five to seven units despite expecting substantially larger allocations.
The device starts at ₹2,99,900 in India, according to Moneycontrol. Retailers said the price difference between India and the United States could encourage parallel imports from overseas markets.
Moneycontrol also reported that the All India Mobile Retailers Association alleged that distributors were requiring retailers to purchase older iPhone models to secure allocations of newly launched devices. These are retailer-industry allegations, and Apple had not responded to Moneycontrol’s queries at the time of publication.
The limited supply of a premium device can create launch-day excitement without translating into broad sales volumes. Its high price also restricts its potential customer base compared with more affordable iPhone models.
What the Shipment Numbers Say About Apple’s Position
Apple’s reported festive sales decline needs to be distinguished from smartphone shipment data. Retail sales measure devices sold to consumers, while shipments track devices sent into distribution channels. The two measures can move differently because retailers may be reducing inventory or selling through stock purchased earlier.
IDC data cited by Moneycontrol put Apple’s India iPhone shipments at 14.3 million units in 2025. Retailers and analysts now expect shipments to decline by double digits in 2026, although the final figure remains uncertain.
Apple continues to hold a strong position in the premium segment. IDC data cited in the report showed that Apple accounted for 27% of India’s smartphone market by value in the June 2026 quarter.
| Indicator | Reported figure | What it indicates |
|---|---|---|
| Apple iPhone shipments in India, 2025 | 14.3 million units | Record annual shipment level cited by Moneycontrol |
| Dussehra-period iPhone sales | Down up to 30% | Retailers’ reported decline, not an official full-season national tally |
| Apple’s smartphone market share by value, June 2026 quarter | 27% | Strength in India’s premium smartphone segment |
| iPhone Duo starting price in India | ₹2,99,900 | High entry cost for the new premium category |
Sources: Moneycontrol and Moneycontrol’s earlier shipment outlook.
The figures show why a slowdown in shipments does not automatically mean Apple’s premium position has disappeared. Market share by value and total units sold measure different aspects of the business. The company can remain influential in the premium segment while facing weaker unit growth.
Will Diwali Sales Help Apple Recover?
Diwali remains an important test for Apple’s festive performance. Because the festival falls later in 2026, some purchases and inventory movements have shifted into October and November.
Retailers and analysts have cautioned that it is too early to assess the entire festive season. Financing offers, exchange benefits and the availability of popular models could help revive demand as the buying period continues.
The outcome will also depend on whether consumers consider current iPhone prices justified. If buyers continue to delay upgrades, a stronger Diwali period may not be enough to reverse the broader annual shipment trend.
Apple’s performance will therefore depend on a combination of product availability, pricing, promotional support and consumer willingness to spend.
The Bigger Picture
Apple’s festive slowdown reflects a broader change in India’s smartphone market. Rising component costs, higher device prices and longer replacement cycles are making consumers more selective, including in the premium segment. The traditional festive formula of new launches and aggressive discounts may be less effective when the overall cost of upgrading keeps increasing.
For Apple, the challenge is to preserve its premium brand positioning while ensuring that enough customers can afford its devices. Older-model pricing, exchange programmes, financing and consistent supply could play a significant role in supporting demand. The next few weeks will help determine whether the reported Dussehra decline is a temporary seasonal setback or part of a more sustained slowdown.
FAQs
1. Why are Apple iPhone sales falling in India?
Retailers attribute the decline to higher prices, fewer discounts, reduced financing benefits and consumers keeping their existing phones for longer. Limited availability of some new models has added pressure.
2. How much have iPhone sales fallen during the 2026 festive season?
Retailers told Moneycontrol that sales around Dussehra fell by up to 30%. This is a reported retail-sales decline, not a final nationwide figure for the entire festive season.
3. How many iPhones did Apple ship in India in 2025?
Apple shipped 14.3 million iPhones in India in 2025, according to IDC data cited by Moneycontrol.
4. Is Apple losing its position in India’s premium smartphone market?
Not necessarily. IDC data cited by Moneycontrol showed Apple held 27% of India’s smartphone market by value in the June 2026 quarter. A decline in unit shipments does not automatically mean a similar decline in value share.
5. Could Diwali improve Apple’s sales?
Yes, demand could improve as more festive purchases take place in October and November. However, the outcome will depend on pricing, availability, financing offers and consumer spending.
Looking Ahead
Apple’s India performance will be closely watched through the rest of the festive season and into the final quarter of 2026. Stronger Diwali demand, better availability of premium models and attractive financing could soften the slowdown, but the full-year shipment outcome remains uncertain.
The longer-term challenge is affordability. If consumers continue to extend their smartphone replacement cycles, Apple and other manufacturers may need to rely more on meaningful product improvements, trade-in programmes and flexible payment options to encourage upgrades. For now, the reported 30% Dussehra sales decline is a warning sign, not the final verdict on Apple’s festive season.
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