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Apple Distributors in India Threaten Penalties Over iPhone 17 Foreign Activations

Retailers say the penalty threat singles out mainline shops despite diversion across multiple channels.

Overview

  • Distributor notices reviewed by MoneyControl warn of high fines and possible store-code blocking if a device sold is activated with a foreign SIM within 90 days.
  • The action follows scarce availability of iPhone 17 models in India as units are diverted to higher-margin markets in Russia, the Middle East, and Africa.
  • Industry estimates cited in reports say 3–5% of iPhone exports from India are unofficial, with nearly half of those shipments bound for Russia.
  • Apple’s iPhone exports from India reached about $1.6 billion in October, representing nearly one-third of the country’s smartphone exports.
  • Apple cut bank cashback on the iPhone 17 series to Rs 1,000 from Rs 6,000, and Tim Cook said supply is expected to stabilise by December.