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Apple’s India Distributors Threaten Penalties to Stop Grey‑Market iPhone 17 Exports

The directive targets grey‑market sales that have drained local supplies of iPhone 17 models.

Overview

  • If a device sold by a retailer is activated with a foreign SIM within 90 days, distributors warn of heavy fines and possible store‑code blocking.
  • Reports link the crackdown to bulk diversion of units to Russia, the Middle East and Africa, which has intensified shortages of base iPhone 17 variants such as 256GB and 512GB.
  • Industry estimates suggest 3–5% of iPhone exports from India move through unofficial channels, with nearly half of that flow reportedly bound for Russia.
  • Apple’s iPhone exports from India totaled about $1.6 billion in October, accounting for roughly a third of the country’s smartphone exports.
  • Apple cut bank cashback on iPhone 17 models to ₹1,000 from November 22, retailers argue enforcement is selective across channels, and Tim Cook says supply should stabilize by December.