Highlights
Apple has intensified its initiatives to prevent unauthorised exports of iPhones from India, terminating relationships with various distributors and enforcing stricter compliance regulations across its retail channels. This decision follows an increase in grey-market shipments to destinations like Russia, Africa, and West Asia, according to a report by Moneycontrol.
Reasons Behind the Changes
The report cited industry executives who noted that India’s relatively affordable pricing has positioned it as a sourcing hub for traders aiming for higher-profit sales in international markets. It is reported that Apple has already cut ties with multiple distributors in regions such as Punjab, Mumbai, Haryana, and parts of southern India, with additional partners currently under assessment.
Enhanced Retail Store Checks
Furthermore, distributors have issued new guidelines to retailers to tighten in-store activation processes to curtail diversion. According to the updated procedures, devices must be unboxed, activated using a SIM card, and set up in-store before being handed over to buyers. Consequently, customers may no longer receive iPhones in sealed packaging at the point of sale.
Compliance and Penalties
Retailers have been notified of immediate repercussions for infractions, such as being prohibited from conducting future business. The report also emphasised that transactions associated with exports are under active surveillance.
New Billing Regulations and Partner Adjustments
In addition to the above measures, Apple has rolled out new invoicing and compliance protocols. Sales of iPhones and iPads will now be billed at their maximum retail price, while retailer margins will be released through credit notes following verification based on activation information. Settlement processes will occur on a weekly basis, accompanied by reconciliation reports.
These measures build on earlier actions initiated in November, where distributors advised against the use of foreign SIM cards to activate newly purchased devices, particularly newer iPhone models, after reports of supply shortages linked to bulk diversion emerged.
Impact on iPhone Exports
Government statistics for the initial 11 months of FY26 revealed that iPhones accounted for over 75% of India’s smartphone exports, contributing nearly Rs 2 trillion out of a total of approximately Rs 2.6 trillion in shipments. Industry estimates indicate that 5-7% of these exports might be moving through unofficial channels, with a notable volume directed towards Russia and other international markets. In line with these tighter regulations, Apple is also favouring larger retail partners, thereby limiting its engagement with smaller retailers and shortening premium partner agreements from three years to one.
