New Delhi, Oct. 20 -- Apple's most expensive iPhone yet is proving so scarce that some Indian buyers are willing to pay Rs.50,000 above its retail price to get their hands on one. With only about 6,000 units of the Rs.2,99,900 iPhone Duo expected across India in its first week, the shortage is fuelling demand in the grey market, according to at least five retailers, industry stakeholders and analysts that Mint spoke with.

The limited availability comes despite significant demand potential. On 9 September, Mint reported after Apple's unveiling that the iPhone Duo could sell 150,000 units in its first full year. Now, at least three retailers with direct knowledge of Apple's distribution directives in India said only 6,000 units are expecte...