Welcome to the 170th edition of The Pattern, a weekly newsletter decoding the latest in economy, finance and technology.  
 
Eyeing the iPhone 17? If you buy it on EMI, one missed payment could do more than hurt your credit score — it could lock your phone. That’s the possible reality we’re diving into today. 
 

Smartphones have become essential in ways few of us pause to consider. They’re not just for staying connected — they’re your ID, your wallet, your office, and for millions of Indians, the very first gateway into the world of credit. 
 
Which is why two parallel developments matter so much: On one side, Apple is rolling out the iPhone 17, tapping into the growing demand for premium smartphones. On the other side, the RBI is proposing a rule that could allow lenders to lock devices bought on EMI in case of missed repayments. 
 

One signals aspirations. The other signals caution. Together, they tell us something deeper: India’s consumer economy thrives on small screens yet moves within the boundaries of robust regulation. 

The regulator’s lock screen 
 Small personal loans are under stress. Delinquencies on fintech-driven personal loans have hit a six-quarter high of 3.6%, with under-25 borrowers showing even higher default rates at 6.1%.  
 

RBI’s proposal to allow remote device-locking is aimed at this vulnerable segment. By treating the smartphone itself as collateral, regulators hope to reduce unsecured losses and push discipline into a market where growth has outpaced guardrails.  
 
Zooming out:  

• Growth in smartphones credit can’t come at the cost of unchecked defaults.  

• Regulators are signalling that rising stress in sub - ₹1 lakh loans in now a systemic risk.  

• Consent protocols and data protection rule will be critical to keeping consumer trust intact.  

The Apple effect 

The iPhone 17, starting at ₹82,900 in India, goes on sale from September 19. Apple has also cut prices on the iPhone 16 series, stoking festive demand. 

Currently. More than 70% of iPhone in India are financed through EMI or BNPL. New data from Croma shows that between January and August 2025, one in four buyers opted for NBFC loans, credit-card EMIs or cashback schemes, breaking down price barriers and helping push premium smartphone demand beyond metros.  
For lenders, the iPhone is more than a phone. It is the symbol of high risk, high demand consumer credit.  
This is why RBI’s proposal lands at a critical moment. A surge in festive sales financed by small loans could either deepen credit adoption responsibly or tip more borrowers into repayment stress.  
 
From calling to collateral 
India shipped 151 million smartphones in 2024, up 4% even as global sales stayed flat. Financing is driving this growth. 37% of consumer durable loans last year were for smartphones compared to 1% in 2020. Average ticket loan ticket size has also gone up, climbing from ₹11,094 to ₹12,648 in a single year. 
 
Over time, smartphones have shifted from being a fancy gadget to a financed utility, almost mirroring the way in which personal loans have gone from a serious commitment to a swipe-and-go transaction. 
 

The bigger pattern 

The iPhone 17 launch and RBI’s lock-screen proposal are not parallel stories. They are two ends of the same arc: aspiration pulling demand forward, regulation pulling risk back. Together, they trace the boundaries within which India’s consumer credit economy must operate. 

Think of earlier patterns. Housing finance unlocked mobility but needed loan-to-value caps. Microfinance expanded inclusions but required ceilings after over-indebtedness cycles. Smartphone finance is today’s version of that story. It is an entry point into formal credit that is widespread, essential, and easy to repossess.

That combination makes it both transformative and fragile.  

To regulate phones, then, is not to stifle aspiration. It is to build safeguards so that the very device fuelling progress does not become a financial liability. 
 
Reading list 
 

1. https://www.livemint.com/money/personal-finance/rbi-may-allow-banks-to-lock-the-phones-bought-on-credit-if-buyer-defaults-on-repayment-report-personal-loan-11757582359259.html  

2. https://www.hindustantimes.com/technology/iphone-17-series-india-pre-order-guide-date-time-price-and-more-101757583489671.html

3. https://economictimes.indiatimes.com/industry/banking/finance/fintech-driven-personal-loans-show-rising-stress-delinquencies-at-6-quarter-high/articleshow/122158661.cms?from=mdr

4. https://www.reuters.com/world/india/india-central-bank-plans-give-lenders-key-power-recover-small-loans-sources-say-2025-09-11/

5. https://www.etnownews.com/technology/every-4th-iphone-buyer-took-finance-emi-options-reason-behind-craze-for-apple-smartphone-article-152768972

6.  https://indianexpress.com/article/technology/mobile-tabs/indian-smartphone-market-grows-4-percent-2024-9827735/

7. https://www.financialexpress.com/money/gen-z-now-affording-luxury-one-emi-at-a-time-3934826/  

8. https://www.businesstoday.in/personal-finance/banking/story/how-india-borrows-loans-to-buy-smartphones-business-loans-surge-to-new-highs-home-loan-sees-marginal-growth-450499-2024-10-17  
    

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Cheers,  
Mayank

All opinions expressed are my own and do not necessarily reflect the views of FinBox or its promoters.