The iPhone and The Indian Economy
By: Fahid Fayaz Darangay
The new iPhone 17 series was launched at an event, titled “Awe Dropping,” which occurred on Tuesday, September 9, 2025, at Apple Park in Cupertino, California. The series has been officially launched in India and has gone on sale today, September 19, 2025.
The iPhone 17 series in India ranges from about ₹82,900 (for the base iPhone 17) up to ₹2,29,900 (for the top 2 TB iPhone 17 Pro Max). After this launch, the question that comes to one’s mind is its affordability in the Indian economy.
While a growing urban middle class and upper class in India may purchase high-end cellphones like the iPhone, a sizable portion of the population still considers these gadgets to be well out of their price range. India is a country with stark income disparities.
But increasing iPhone sales in India point to a change: more Indians are now able and ready to spend money on expensive technology. This is indicative of an overall pattern of rising disposable income, consumer confidence, and urban economic expansion.
Furthermore, Apple’s expanding manufacturing footprint in India, particularly the local assembly of the iPhone, demonstrates how India is emerging as a crucial link in the global tech supply chain.
Apple and its partners have made significant investments in local production under the government’s Production Linked Incentive (PLI) program, creating jobs and increasing exports. In fact, during the most recent fiscal year, iPhone exports surpassed $10 billion, which improved India’s trade balance.
Yet, iPhone ownership remains largely limited to a small, urban segment of the population. In rural areas and lower-income households, the iPhone is often seen more as a symbol of aspiration than an attainable product. Many buyers rely on EMIs or credit to purchase one. This reflects not just economic progress, but also underlying income inequality.
The iPhone Affordability Index reveals global divide as in Luxemberg the average worker only needs 3 days of work, in US only 4 days of work and in UK it needs 7 days of work afford an iPhone 17 Pro. In India this comes to be 160 days of work which nearly is a year. The international average stands at approximately 26 working days.
This disparity becomes even more pronounced when considering India’s wage structure. Recent surveys indicate that regular salaried employees in India earn an average of Rs 19,010 monthly.
This poses a worrying question on Indian Economy as a phone may cost you the hard work of a year.
When compared to their international counterparts, Indian consumers are significantly disadvantaged in terms of pricing. While the identical gadget in the US retails for about Rs 70,512, the base iPhone 17 model costs Rs 82,900 in India, making the Indian price almost 15% more.
For premium versions, this disparity significantly increases: The price difference between the iPhone 17 Pro Max in India and the US is a startling 29%, with the former costing Rs 1,49,900 and the latter Rs 105,812.
The Goods and Services Tax (GST), import tariffs, local distribution markups, and currency fluctuations are some of the causes of these price discrepancies. Even with these justifiable cost increases, Indian customers still have to pay a disproportionately high price to use the same technology.
A worrying tendency among Indian consumers has resulted from the aspirational character of Apple products: a greater reliance on credit cards, longer financing options, and buy-now-pay-later plans. Despite their apparent improvements in accessibility, these mechanisms frequently trap buyers in debt cycles, especially those who are first-time or have low incomes and fail to consider the long-term financial ramifications.
Discussions from Indian users regretting iPhone purchases that have put a strain on their finances are common on social media platforms, underscoring the ways in which the pursuit of status symbols may backfire monetarily.
In conclusion, it is possible to view the iPhone’s rising popularity and domestic manufacturing in India as a sign of and a factor in economic growth. It emphasizes India’s growing economic connection with the rest of the world and reflects the ambitions of a youthful, tech-savvy populace.
But it also serves as a reminder that inclusive growth, where opportunity and affordability extend beyond the metropolitan elite, is where real economic power resides.
(The author has completed his Masters in Financial Economics from Madras School of Economics, Tamil Nadu and is currently working as Finance Accounts Assistant for Government of Jammu and Kashmir)
