India's smartphone market is experiencing a sharp decline in sales during the festive season. Recent data indicates a 16% year-on-year drop in unit sales, influenced by affordability challenges. Retailers are reporting similar downturns, estimating a 20% decline since the start of Navratri. While premium smartphones remain steady in sales, entry-level models are suffering significant losses.

A salesman shows mobile phones to customers on the eve of Union budget at a shop, in Mumbai on Saturday. (ANI Photo)

Kolkata: India's festive smartphone market is staring at one of its sharpest-ever downturns, with unit sales falling 16% year-on-year during ecommerce Navratri sales, according to market tracker Counterpoint Research . Lower discounts and regular price hikes by handset makers to offset higher chip costs is squeezing affordability despite ecommerce platforms attracting record consumer traffic. Average online festive discounts on smartphones have narrowed to 10-25% from 25-40% during last year's sales, Counterpoint said. This comes amid a 35-40% surge in smartphone prices on average, triggered by a two- to three-fold surge in memory chip prices, rupee depreciation and higher freight costs. Advt

Online Navratri festive sales, the largest in terms of discount and business, began last week and will continue till this weekend. This period contributes 60-65% of the total festive business in ecommerce. Brick-and-mortar retailers are reporting a similar slump, with the All India Mobile Retailers Association (AIMRA) estimating a 20% drop in sales since the onset of Navratri. While retailers expect sales to pick up closer to Dussehra and Diwali, AIMRA estimates overall festive retail sales could still decline by over 15% from last year.

Source link