It is expected that the price of smartphones will come down this coming festive season. Buyers can expect steep discounts and multiple sales and offers across online and offline channels. The festive season usually begins in mid-August and lasts until the end of the year.
Market observers and retailers say the brands’ goal is to liquidate additional inventories caused by sluggish global demand and rising inflation. OEMs will try to control demand during the upcoming festive season to mitigate the weak revenue impact of the first half of the year. With the introduction of new phones there is an over-distribution of existing models. Brands will look to clear bulk inventory by offering deep discounts during the festive season.
The Economic Times India has spoken with offline retailers, confirming that it has an inventory build-up and that brands have increased margins for offline retailers and that they are offering discounts on products. Chinese smartphone brands have been gathering their inventories in the domestic market as they struggle to sell across Europe. Samsung, India’s second largest smartphone brand, is reported to have 50 million units of distribution stock globally.
The smartphone market witnessed flat growth in the first half of the year due to low demand due to high inflation and increased average selling price. Therefore, brands expect a comeback in the second half of this year, and it is expected to achieve 58 percent of this year’s total export forecast of 181 million.