Apple has a grey market problem in India
Apple has enjoyed huge success with iPhone in India, but at least a fraction of that benefit comes through grey market sales to Russia, a report claims.
It says Apple’s official distributors in India are warning mobile phone retailers not to shift iPhones for sale in Russia and elsewhere.
Source of supply
What appears to be happening is that iPhones are being sold for use in Russia. In order to use the devices there, they must be activated with SIM cards for networks there.
Apple therefore is now warning distributors of penalties if iPhones they sell through their channels are activated outside India within 90-days of purchase.
One of the reasons Apple is taking these steps seems to be success – iPhones are in big demand in India and these grey exports mean consumers there face supply shortages.
While failing to cite any sources, the report, which cites MoneyControl, claims as many as 3-5% of total iPhone exports from India come through unofficial channels, and nearly half of these go to Russia.
With total iPhone exports in October reaching $1.6b, those percentages easily translate into many thousands of smartphones.
The news comes with a backdrop of serious shortages of iPhones in India as the iPhone 17 series is in great demand globally. Apple CEO, Tim Cook has said the supply challenge should be resolved by December.
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