Mobile phone retailers expect 10% price hike post Diwali even as sales drop

Mainstream mobile phone retailers are experiencing a footfall and sales contraction of 25% to 35% in value-oriented categories. Furthermore, major Android handset makers are expecting a 10% price hike shortly after Diwali. Lava to increase smartphone prices by up to ₹3,000 storyline 1 All India Mobile Retail Association (AIMRA) projects a staggering 50% volume drop after mid-Novmber that could persist over an extended period.

In response to flagging demand and severe component constraints, top smartphone brands have already cut production schedules by 30%, the retail body said. The festive season, beginning with Navratri and concluding after Diwali, is a crucial time for Indian mobile retailers. This period sees stores brimming with customers.

Retailers are facing a subdued festive market characterised by declining footfall, plummeting sales of mass-market devices and rising costs due to a global memory chip shortage. The sub-₹20,000 smartphone segment has been the worst hit — a category that traditionally brought in volume sales.