The move is expected to impact models such as the iPhone 15 and iPhone 16 series, with prices likely to increase by up to ₹5,000, according to market experts.

Incentive Withdrawal to Impact Retail Prices

Industry sources indicate that the change could be implemented within the week. DG support allowed retailers to offer discounts to customers without altering the official maximum retail price (MRP). With the withdrawal of this support, retailers will no longer be able to extend similar price benefits, leading to higher effective purchase costs.

This development follows a recent reduction in cashback offers, which were cut from ₹6,000 to ₹1,000, making newer devices relatively more expensive and narrowing the pricing gap between older and newer models.

What is Demand Generation Support?

Demand Generation (DG) support refers to financial incentives provided by brands to retailers to stimulate demand. These funds are typically passed on to customers in the form of discounts or promotional offers.

With the removal of DG support, the pricing flexibility that retailers previously enjoyed is expected to disappear, directly affecting consumer pricing at the point of sale.

Last Opportunity for Lower Prices

Retailers suggest that current pricing may only be available for a limited time, with some indicating that buyers may have a final opportunity to purchase these models at lower rates before the revised pricing takes effect.

Customers who were waiting for price drops following the launch of newer models may now face higher costs instead.

No Impact on Newer iPhone Models

According to sources, the withdrawal of incentives applies only to older models, and there will be no immediate impact on the pricing of the iPhone 17 series.

Experts note that Apple has maintained stable MRP pricing for its flagship lineup, even as pricing strategies evolve at the retail level.

Broader Smartphone Price Increase Trend

The price increase is not limited to Apple devices. Several major smartphone brands, including Samsung, Vivo, Oppo, Realme, Xiaomi, Motorola, and Nothing have also raised prices since November, with further increases seen in March.

Manufacturers cite rising input costs-particularly for memory and storage components-as a key reason for the upward revision in prices. In response, some companies have also reduced their sales targets by up to 20% to maintain profitability.

Key Factors Behind Price Increase

Several factors are contributing to the rising cost of smartphones:

Component Costs: Increased prices of chipsets, memory, and storage
Incentive Cuts: Reduction or removal of retailer discounts
Currency Pressure: Weakening of the Indian rupee against the US dollar

These combined pressures are pushing manufacturers and retailers to adjust pricing strategies across segments.

Limited Impact on Consumer Demand

Despite rising prices, experts believe the impact on demand may be limited. A large proportion of smartphone purchases in India are made through EMI (Equated Monthly Installment) options, meaning a ₹5,000 increase may not significantly affect monthly payments for most buyers.

As a result, while upfront costs may rise, overall consumer demand is expected to remain relatively stable.

Market Outlook for 2026

According to International Data Corporation, the Indian smartphone market is likely to face a volatile year in 2026. Challenges such as supply chain disruptions, currency fluctuations, and rising component costs are expected to impact the industry.

Shipments are projected to decline by 12-15% during the year. However, Apple's portfolio is expected to show moderate growth of around 5-6%, indicating continued demand for premium devices despite pricing pressures.

The withdrawal of DG support marks a shift in Apple's retail pricing strategy in India, potentially increasing costs for consumers looking to purchase older iPhone models. As the broader smartphone market navigates rising costs and economic pressures, pricing trends will remain a key factor influencing consumer decisions in 2026.