Consumer observes smartphone on retail display during festive season.
Smartphone brands are bracing for a significant downturn in sales during the upcoming festive season, with projections indicating a 9-10% decline. This anticipated drop is primarily attributed to rising handset prices, which are dampening consumer demand.
In response to the anticipated slowdown, manufacturers are reportedly strategizing with discounts. However, these price reductions are expected to be applied to already inflated baseline prices, potentially limiting their effectiveness in stimulating sales.
To navigate the challenging market conditions and manage costs, smartphone manufacturers are focusing on securing components early. Additionally, marketing budgets are being trimmed as companies re-evaluate their promotional strategies. To encourage purchases despite the higher price points, brands are expected to emphasize financing options, such as no-cost Equated Monthly Installments (EMIs).
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