Smartphones are expected to become cheaper this upcoming festive season. Buyers can expect steep discounts and multiple sales and offers across both online and offline channels. The festive season usually starts in mid-August and continues till the end of the year.
Market monitors and retailers say that brands aim to liquidate the excess inventories caused by the sluggish demands globally and the rise in inflation. OEMs will seek to control the demand through the upcoming festive season to mitigate the revenue impact of the weak first half of the year. With the introduction of new phones, there is an oversupply of existing models. Brands will look to clear up the bulk inventory by deep discounting during the festive season.
Economic Times India spoke with offline retailers who confirmed that there is an inventory build-up and brands have increased margins to offline retailers allowing them to offer discounts on products. Chinese smartphone brands have accumulated their inventories in the domestic market as they are struggling to sell across Europe. Samsung, the second largest smartphone brand in India is reportedly struck with 50 million units in distribution stocks globally.
The first half of the year saw a flattened growth in the smartphone market due to low demand caused by high inflation and increasing average selling prices. Thus brands are hoping for a bounce-back in the second half of this year and it is expected to garner 58 percent of the total 181 million shipments forecast for the year.
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