Amidst an industry-wide trend of smartphone manufacturers like Samsung, Oppo, Vivo, Realme, Xiaomi, Motorola, and Nothing raising prices of their devices. Apple too has decided to jump on the bus, but the reason why buying an iPhone is going to get more expensive is different compared to the aforementioned Android brands.
The global shortage of memory chips has forced almost all Android brands to either increase the prices of their devices or in some cases to delay and cancel upcoming launches.
Coming back to how buying an older iPhone in India may soon become more expensive due to a significant shift in Apple’s retail strategy, as reported by Moneycontrol. The company is reportedly withdrawing a key incentive program that has long helped keep older models affordable in the market.
Hidden discounts coming to an end
For years, Apple has relied on what is known as “demand generation” (DG) support—backend incentives offered to retailers and channel partners. These incentives enabled sellers to provide discounts without altering the official maximum retail price (MRP). However, now Apple Inc. is now pulling back this support, which means retailers will lose the flexibility to offer such price cuts.
As a result, popular models like the iPhone 15 and iPhone 16 could effectively become costlier by around Rs. 5,000 for consumers. While the MRP remains unchanged, the disappearance of these backend discounts will directly impact the final price buyers pay.
Change of pricing strategies
This move signals a broader change in Apple’s India playbook. By reducing retailer-led discounts, the company appears to be tightening control over pricing and brand positioning.
Analysts suggest that narrowing the price gap between older and newer models could push more consumers toward the latest iPhone lineup.
The change also follows an earlier reduction in cashback offers, which were slashed significantly in recent months. Together, these steps indicate Apple’s intent to maintain premium pricing discipline rather than compete aggressively on discounts.
What does this mean for buyers and retailers?
For consumers, especially those wanting to buy an older iPhone as a more affordable entry into Apple’s ecosystem, the decision could make purchases less attractive. Since the discounts that once made these devices “value buys” may now be harder to find, particularly in offline retail channels.
Retailers, on the other hand, may struggle to replicate earlier deal structures without financial backing from Apple. This could reduce their ability to drive sales volumes through promotional pricing.
Will this price hike affect the iPhone demand in India?
Despite the expected price increase, demand may not take a significant hit. India’s growing reliance on EMI-based smartphone purchases often softens the impact of upfront price hikes. Moreover, Apple’s brand appeal continues to remain strong among aspirational buyers.
At the same time, the move comes amid a broader trend of rising smartphone prices across brands, largely driven by increasing component costs such as memory and storage.
Conclusion
Apple’s decision to increase the prices of their older iPhones in the Indian smartphone market, where pricing is a key factor, is a risky one. However, in India’s smartphone market, profitability and pricing control are becoming as important as volume growth.
While older iPhones may lose some of their affordability edge over flagship Android devices, the company seems confident that its ecosystem and brand value will continue to drive demand—even at a slightly higher price point.