Technology Desk – Smartphone Sales Fall 20%: The expectation of increase in smartphone sales on Diwali was not fulfilled this time. Smartphone sales in the country's offline market during Diwali declined by 18 to 20% as compared to last year.
According to the All India Mobile Retailers Association (AIMRA), between November 6 and 9, customer traffic at stores continued, but purchases were not as expected.
Despite the decline in the number of sales, the total sales amount remained almost the same as last year. The reason for this was the increase in the average prices of phones. That means shopkeepers sold fewer phones, but there was no major decline in the total turnover due to the sale of expensive phones.
Sales fell by 40% before Diwali
According to AIMRA, the number of smartphone sales had dropped by nearly 40% in the seven days before Dhanteras. Many customers waited for discounts during the festival and postponed purchases. From Dhanteras to the next day of Diwali, customer traffic at shops increased, but the decline that had occurred before could not be fully compensated.
According to retailers, there appeared to be a gap between customer interest and purchasing decisions. People came to the shop to look at the phone and ask the price, but many customers postponed the purchase or looked for lower priced alternatives.
Demand for phones worth Rs 30 to 60 thousand is high
According to AIMRA report, during Diwali, the maximum purchases were made in smartphones priced between Rs 30 thousand to Rs 60 thousand. Demand remained intact in the premium segment also. Apple and Motorola phones performed better. The iPhone 15, iPhone 16 and iPhone 17 models available at old prices were also liked by the customers.
On the contrary, Realme's sales were more affected. According to AIMRA, the company's smartphone sales declined by more than 50% in different regions. In the report, reasons for this have been cited as comparatively high prices, not launching new models during festivals and lack of attractive offers.
Trouble due to difference in online and offline prices
Mobile retailers also cited the difference in prices of the same phone in online and offline markets as the reason for the decline in sales. According to AIMRA, traditional shopkeepers faced difficulties due to some Samsung models being available at lower prices on online platforms. It had more impact on small retailers.
Even in the segment priced below Rs 15,000, customers stayed away from purchasing. Instead of buying a new phone, some customers went for an old or refurbished smartphone. Retailers have demanded uniformity in online and offline prices from companies.
Smartphone prices may increase further
Amid the decline in smartphone sales, companies are preparing to increase prices. According to the report of November 13, Ai+ Smartphone has increased the prices of its two models to above Rs 10,000.
Lava is going to make its phones expensive from November 15. Both companies have cited the increasing cost of memory components as the reason for this. There is news of increase in prices of some models by up to Rs 3,000.
According to Counterpoint Research, smartphone shipments in India declined by 20% year-on-year during July to September 2026. A decline of 47% was recorded in the shipment of phones priced below Rs 20,000.
The research firm has said that the main reasons for this are phones becoming expensive due to rising memory prices and customers postponing buying a new phone. Thus, the decline in offline sales during Diwali has come amidst the already weak condition of the market. If the pressure of rising costs and prices continues, the challenge may increase further in the coming months, especially for the budget smartphone segment.