Smartphone shipments up by 8%
The general trade retailers in many states witnessed a remarkable turnaround in customers, in the festive season. The bulk of smartphone sales were driven by 5G connectivity and replacement demand.
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Shipments of smartphones have increased during this festive season. The smartphone shipments increased by 6-8% as compared to the previous year. According to market trackers, the bulk of smartphone sales were driven by 5G connectivity and replacement demand.
Tarun Pathak, research director at Counterpoint Research said, “Diwali was better than what it was last year. We are predicting an 8% increase in volume and 25% growth in value during the 30-day festive season beginning from the first online sale.”
According to Amazon India, it sold 2.5 times more smartphones in the premium segment as compared to last year. The company informed that amongst all the smartphones sold, 60% were 5G ready and 70% of all smartphone orders came from Tier 2 and below towns.
Kailash Lakhyani, Chairman, All India Mobile Retailers Association said, “Retailers registered a growth of 20-40% in value due to strong support from smartphone brands which provided ample stocks, increased margins, temporary price cuts, and bank cashbacks.”
He further added that loan approvals from non-banking financial companies (NBFCs) increased from 70% to 90% due to smartphone brands allowing them to install apps to monitor timely payment of instalments.
The AIMRA analysis has revealed that general trade retailers in the states of Gujarat, Maharashtra, West Bengal, Haryana, Andhra Pradesh, Telangana, Karnataka, Jharkhand and Rajasthan witnessed a remarkable turnaround in customers. On the other hand, large-format retail stores were dominant in Delhi and Mumbai.
Despite the significant spike in sales during the festive season, analysts project a 1-2% on-year annual decline in shipments in 2023.
IDC India has predicted that the fourth quarter will see high levels of inventory and a cyclical dip. As Upasana Joshi, Research Manager, IDC India noted, “October saw a spike in shipments, but November and December are going to be slow. With this, we should end a flat or a slight decline in the overall market.”