Rising Prices Threaten Festive Smartphone Sales in India

In India, escalating smartphone prices are expected to dampen festive period sales, with a report indicating a possible reduction of up to 30% in annual sales if the trend persists. This projection is based on findings from a joint report by Trakin Tech and Techarc, which highlighted consumer concerns over affordability.

The report, which surveyed nearly 6,000 prospective buyers, found that 54% may delay their purchases or switch to pre-owned devices. The survey attributes this to significant price hikes driven by increased demand for memory chips, a depreciating rupee, and strategic pricing by brands.

Entry-level handsets have seen notable price increases, with costs for some rising between 8 and 12%. Additionally, the affordability crisis is expected to bolster the second-hand market. Techarc's Faisal Kawoosa emphasized the need for brands to prioritize accessibility as consumers continue seeking quality smartphones.

The tightening of consumer finance is also a concern, as stricter lending practices are making it harder for lower-tier buyers to afford new purchases. The industry may need to innovate financing solutions to counter these challenges, particularly empowering local retailers to assist potential buyers.

(With inputs from agencies.)