Smartphone sales may slow down on weak demand ahead of polls
market as India heads into general elections scheduled to start in a month from now. Sales, which typically surge ahead of general elections, are expected to be muted with political parties refraining from promising free devices to their constituents as has been the case before.
Market trackers said tepid demand has dampened sales in the high-volume sub-₹20,000 price segment that was expected to revive this year led by budget 5G smartphones. According to Counterpoint Research, smartphone sales fell around 5% on year in January, with similar trends being observed for February.
«Post festive season effect, increased replacement cycles and absence of government money infusing policies are some of the reasons for slow demand,» said Shilpi Jain, senior research analyst at Counterpoint Research.
She added that the market is experiencing a slow demand period since the beginning of this year.
However, while inbound shipments to distribution channels remain on par with pre-Covid levels this quarter, consumer sentiment remains muted, dragging sales. «If current trends of low demand persist with no correction in shipments, brands will stare at another instance of inventory pile-up in the second half, which will impact annual sales like in 2022,» Jain said.
IDC India is estimating a large increase in shipments from the 32 million units shipped in the March quarter of 2023, led by affordable 5G launches and premium flagship handsets. In the previous election year of 2019, shipments in the first quarter were at 31 million,
