Evidence from retailers, analysts, and supply chain reports shows consumers in India and globally are abandoning this year’s flagship smartphone launches in favor of last year’s models, driven by fears of a steep price increase for Apple’s upcoming iPhone 17 series.
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What Happened
Retailers and industry analysts report a sharp shift in consumer behavior as buyers rush to purchase the iPhone 16 and Samsung Galaxy S24 series ahead of an expected price surge for Apple’s next flagship lineup. The trend has led to localized shortages of the iPhone 16 Plus in India, with some electronics chains and e-commerce platforms struggling to meet demand for the 2023 model.
Apple has not officially announced pricing for the iPhone 17, but multiple industry sources—including MacRumors and The Wall Street Journal—indicate the company has slashed its demand forecast for the new series by as much as 15-20%, citing rising production costs and waning consumer appetite for premium upgrades. Unnamed supply chain executives told Korea JoongAng Daily that Apple’s internal projections now assume a 10% price increase for the base iPhone 17 model, which would push the starting price in India to approximately ₹88,000—nearly ₹8,000 higher than the iPhone 16’s launch price of ₹79,900.
Samsung has also benefited from the shift, with its Galaxy S24 and S24 Plus models seeing a resurgence in sales as consumers seek alternatives to Apple’s expected price hike. Retailers in India report a 20-25% increase in searches for the Galaxy S24 series over the past month, compared to the same period in 2025, according to data from major e-commerce platforms.
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Why It Matters
The migration toward older models signals a potential inflection point for the smartphone industry, where annual price increases have long been accepted as inevitable. Apple’s pricing strategy has come under particular scrutiny, with the base iPhone 15 launching at ₹79,900 in India—nearly 15% higher than the iPhone 13’s introductory price of ₹69,900 in 2021. If the iPhone 17’s price crosses the ₹90,000 threshold, it would mark the first time Apple’s base model has breached that psychological barrier in India, a market where affordability remains a critical factor for the majority of buyers.
For Samsung, the trend presents an opportunity to capture market share from Apple, particularly in the mid-range segment. The company’s decision to hold prices steady for the Galaxy S24 series—launching at ₹79,999 for the base model—has positioned it as a more attractive option for cost-conscious consumers. Industry analysts suggest Samsung may further capitalize on this shift by extending software support for older models, a strategy that could pressure Apple to reconsider its own upgrade cycles.
The shift also reflects broader economic pressures. Inflation in India has remained stubbornly above the Reserve Bank of India’s 4% target, and consumer spending on discretionary items like smartphones has shown signs of softening. A recent survey by Counterpoint Research found that 62% of Indian smartphone buyers now prioritize value over brand loyalty, up from 48% in 2023.
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Background and Context
Apple’s pricing strategy has been a subject of debate since the iPhone X’s launch in 2017, which introduced a then-unprecedented ₹89,000 starting price in India. Since then, the company has incrementally raised prices for its base models, justifying the increases with claims of advanced technology, such as improved cameras, faster processors, and longer battery life. However, critics argue that the upgrades have become increasingly marginal, with many consumers unable to justify the premium for incremental improvements.
The iPhone 16 series, launched in September 2025, saw muted demand compared to previous years, with industry reports suggesting Apple had overestimated consumer willingness to pay for the new features. The iPhone 16 Plus, in particular, struggled to gain traction, with some analysts attributing its lackluster performance to its ₹89,900 price tag—only ₹10,000 less than the more feature-rich iPhone 16 Pro.
Samsung, by contrast, has adopted a more conservative pricing strategy, often undercutting Apple’s flagship models by ₹5,000-₹10,000. The Galaxy S24 series, for example, launched at ₹79,999 for the base model, compared to the iPhone 16’s ₹79,900. While the price difference is minimal, Samsung’s strategy of bundling free accessories, extended warranties, and trade-in discounts has resonated with budget-conscious buyers.
The current shift toward older models is not entirely unprecedented. In 2022, Apple faced a similar situation when the iPhone 14 Pro saw stronger demand than the base iPhone 14, leading to a rare mid-cycle price cut for the latter. However, the scale of the current trend—with consumers actively avoiding the upcoming iPhone 17—suggests a more fundamental resistance to Apple’s pricing trajectory.
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Competing Claims and Uncertainty
Apple has not publicly commented on the reported price increase for the iPhone 17 or the demand forecast adjustments. The company’s official stance remains that it does not discuss future products or pricing, though industry insiders suggest an announcement could come as early as August 2026.
There is also debate over whether the shift toward older models is a temporary phenomenon or a long-term trend. Some analysts argue that the current rush is driven by short-term factors, such as the anticipation of a price hike and the availability of discounts on older models. Others, however, see it as a sign of broader market saturation, where consumers are no longer willing to pay a premium for annual upgrades.
A key point of uncertainty is whether Apple will introduce financing options or trade-in incentives to offset the price increase. The company has historically relied on carrier partnerships and installment plans to make its devices more accessible, but such strategies have had limited success in India, where credit penetration remains low compared to Western markets.
Another unresolved question is how Samsung will respond if Apple does raise prices. The South Korean conglomerate has traditionally avoided direct price competition with Apple, instead focusing on differentiating its products through features like foldable displays and AI-powered software. However, if Apple’s price hike creates a significant gap between the two brands, Samsung may be forced to adjust its own pricing strategy to maintain its competitive edge.
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What to Watch Next
1. Apple’s Official Announcement: The company is expected to unveil the iPhone 17 series in September 2026. The pricing and availability of the new models will be critical in determining whether the current trend toward older models continues.
2. Retailer and Carrier Promotions: Electronics chains and e-commerce platforms in India are likely to ramp up discounts and bundled offers for the iPhone 16 and Galaxy S24 series in the coming months. Consumers should monitor these deals, particularly during the festive season, when retailers typically offer their most aggressive promotions.
3. Samsung’s Mid-Cycle Updates: Samsung may introduce software updates or hardware refreshes for the Galaxy S24 series to maintain its appeal. The company has a history of extending support for older models, and any such moves could further pressure Apple’s market share.
4. Consumer Sentiment in India: Surveys and sales data from the upcoming festive season (October-November 2026) will provide a clearer picture of whether the shift toward older models is a temporary blip or a lasting change in consumer behavior.
5. Apple’s Supply Chain Adjustments: If demand for the iPhone 17 remains weak, Apple may be forced to scale back production further or introduce mid-cycle price cuts, as it did with the iPhone 14. Supply chain reports in the coming months will offer clues about the company’s confidence in its demand forecast.
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Conclusion
The rush to purchase older iPhone and Galaxy models ahead of Apple’s expected price hike for the iPhone 17 reflects a growing disconnect between smartphone manufacturers’ pricing strategies and consumer expectations. While Apple has long relied on annual upgrades to drive revenue, rising costs and economic uncertainty are forcing a reckoning with the limits of premium pricing.
For Indian consumers, where affordability remains a key consideration, the shift toward older models could signal a broader resistance to the industry’s traditional upgrade cycle. If Apple proceeds with a price increase for the iPhone 17, it may accelerate this trend, pushing more buyers toward Samsung or other competitors offering better value for money.
The coming months will be critical in determining whether this shift is a temporary adjustment or the beginning of a new era in the smartphone market—one where consumers prioritize value over brand loyalty and incremental upgrades.
Story synopsis gathered from: Korea JoongAng Daily, Communications Today, TelecomTalk, MacRumors, WSJ — Google News India.
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Story synopsis gathered from: Google News India – Technology — source.
