Smartphones: Cellphones could get cheaper this festive season as companies look to clear stocks

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New Delhi: Smartphone shoppers might expect steep discounts and multiple rounds of sale offers across e-commerce and offline channels during the upcoming festive season, market trackers and retailers, as brands seek to liquidate bloated inventories caused by accelerating inflation and the resulting lukewarm global demand.

“The festive season in the second half of 2022 is expected to bring significant discounts to the Indian market. Online discount sales increased in the second quarter of 2022, and we expect a further surge in the coming quarters,” said Rajeev Naïrsenior analyst, Strategic analysis that follows consumer market trends.

Brands will look to tap into demand throughout the upcoming holiday season to mitigate the revenue impact of the weak first half of the calendar year. Abhilash Kumartelecoms analyst, Strategy Analytics, added that brands should also launch lucrative businesses EMI options for phones sold from their own websites or offline stores.

Deep discounts might be a way to eliminate accumulated inventory.

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Offline retailers ET spoke to confirmed there was a buildup of inventory, and smartphone brands boosted offline retailer margins in June, reversing the recent trend of channel share reductions. in income, to eliminate inventory. Higher margins for retailers would allow them to offer product discounts even in offline channels.

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“Inventory has piled up, margins have been increased to dump product to offline retailers as online channels have reduced their supply. Thus, inventory stuck in the logistics pipeline is now redirected to offline channels with higher margins, and sometimes even with chargers for models that did not initially have them,” said Arvinder Khurana, President of Mobile Retailers Association of India.

Chinese handset companies have also piled up inventory in their home market and are also struggling to sell in Eastern Europe.