Rupee slide may push iPhone 17 prices higher, base variant pegged at Rs 86,000

iphone17

Apple will unveil its iPhone 17 series on September 9 but Indian buyers may have to pay a higher launch prices as a weakened rupee threatens to push up costs. According to TechArc, the base model is expected to start at around Rs 86,000.

The rupee slipped to a fresh low of 88.3613 against the dollar during mid-day trade on September 5, weighed down by foreign outflows in equities and ongoing pressure from Trump’s tariffs.

TechArc’s analysis shows that iPhone launch prices in India have historically mirrored the rupee-dollar exchange rate. This link will likely persist, though Apple will manufacture the iPhone 17 locally from the outset, unlike earlier launches, which began with imports before transitioning to domestic assembly.

“Apple may avoid importing completely built units this year but key components will still come from abroad, keeping costs tied to currency fluctuations. With the rupee already down nearly 5 percent in 2025, launch prices could well cross Rs 86,000,” said Faisal Kawoosa, chief analyst at TechArc.

The pricing trend reflects this pressure. The iPhone’s base model price has more than doubled over the years — from Rs 31,000 in early generations to Rs 79,900 for the iPhone 16, closely tracking the rupee’s slide from 43.5 to 83.7 to a dollar.

On average, iPhone prices have risen 7.6 percent annually, while the rupee has depreciated 5.2 percent. Stripping out currency weakness, Apple’s effective annual hike stands at just 2.4 percent, highlighting its strategy to preserve premium positioning without sharp increases.

Component costs are also adding to the strain. “TSMC’s 3nm chips are getting more expensive, so Apple will either have to cut costs elsewhere or raise prices, as Samsung did with its foldables,” Neil Shah, vice-president at Counterpoint Research, recently told Moneycontrol.

“Apple is stuck in a pincer movement, squeezed by rising input costs and tariffs, and must choose the path of least resistance.”

Despite steep prices, Apple’s story in India has been one of steady growth. TechArc projects iPhone shipments could give Apple a 12–15 percent market share by volume in the coming years, up from just 1–1.5 percent a decade ago.

India’s growing appetite for iPhone

In FY25, Apple’s India sales touched a record $9 billion, up 13 percent year-on-year, Bloomberg reported.

Moneycontrol recently revealed that iPhone sales are on track to hit $12.1 billion (Rs 1,00,000+ crore) in 2025, up from $10.8 billion in 2024, cementing Apple’s lead in the premium smartphone space.

Canalys pegs 2025 shipments at 13.9 million units worth $11.6 billion, compared to 11.8 million units worth $11.2 billion in 2024.

Kawoosa, however, cautioned that sales may plateau once annual shipments hit 15 million units— likely between 2030 and 2033 — before the next growth wave begins.

“For now, the iPhone remains a premium flagship in India: not mass-market, but increasingly seen as worth every rupee by its growing base,” he added.

Apple continues to bet big on India as growth in China slows. In Q2, sales in its largest overseas market rose just 4.4 percent after two years of declines.

To strengthen its India presence, Apple opened new stores in Bengaluru and Pune this week, with outlets also planned in Noida and Mumbai next year.