There is a sudden increase in smartphone sales on the occasion of Diwali. Although the beginning of the festive season was a bit slow, now huge discounts and offers are being offered on brands. Also, higher margins are being given to retailers. According to market trackers and retailers, sales almost tripled week-on-week on Saturday. In this, maximum sales have been seen from major metros like Delhi, Hyderabad, Mumbai and Kolkata.
Increase in off-line smartphone sales
According to Counterpoint Research, the first phase of festive season sales saw a 3 to 4 percent year-on-year decline in volume, while value increased by 8 percent. Retailers said that sales in the offline channel had started increasing around Dussehra. According to market trackers, offline retail contributes about 60 percent of sales around Diwali.
Strong discount on old models of Samsung and Apple
This year, the festive season sales value in the industry is expected to increase by 60-65 per cent compared to the regular sales period. E-commerce marketplaces like Amazon and Flipkart are also offering great discounts on high-end mobile phones like old models from Samsung and Apple. Mobile phone companies have increased their sales targets by about 40-50 percent.There was demand for these smartphones
Demand for high-end handsets has pushed the average selling price (ASP) to Rs 1,000-23,000. During this period, there is high demand for premium smartphones of Samsung, Vivo and Apple, while Xiaomi is seeing high demand for its budget 5G smartphones.
5G smartphone boom
During this subsequent sale, demand for 5G smartphones is being seen. In fact, 5G network has reached most parts of the country. Also, 5G smartphone is available in affordable price point. In such a situation, the demand for next generation smartphones is increasing. Today, 5G smartphones are available in the price point of Rs 10 to 15 thousand.
Interview between Time.news Editor and Smartphone Market Expert
Editor: Welcome to this special feature on Time.news! Today, we have with us Arun Mehta, a seasoned expert in the smartphone market. Arun, it’s a pleasure to have you here. Diwali is upon us, and we’ve seen a remarkable surge in smartphone sales. What do you think has fueled this sudden spike?
Arun: Thank you for having me! It’s great to be here. The surge in smartphone sales during Diwali is quite typical, yet this year we’ve observed an unprecedented increase. Several factors contribute to this trend, primarily the massive discounts and attractive offers being provided by brands. After a slow start to the festive season, retailers have ramped up their promotions to attract consumers.
Editor: That’s interesting. You mentioned attractive offers. Can you explain what kind of deals consumers are seeing this Diwali?
Arun: Absolutely! This season, we’re witnessing discounts that often range from 15% to 30% or more, depending on the brand and model. Additionally, many retailers are offering exchange programs that allow customers to trade in their old devices for significant discounts on new purchases. It makes upgrading to the latest smartphones much more appealing.
Editor: It sounds like a perfect storm of incentives for consumers. Now, you’ve noted that sales tripled week-on-week last Saturday—could you share more about which regions are leading this surge?
Arun: Certainly! Major metros like Delhi, Hyderabad, Mumbai, and Kolkata are at the forefront of this sales boom. These cities have a higher concentration of tech-savvy consumers, and during festivals like Diwali, there’s a cultural inclination to purchase new gadgets as a part of celebrating. The rise in disposable income and tech adoption in these regions further influences this trend.
Editor: That’s fascinating. Given this substantial jump in sales, how are retailers adapting to meet the increased consumer demand?
Arun: Retailers are employing various strategies to keep up. Many are not only ramping up inventories but also introducing special store layouts and online experiences tailored to the festive season. Enhanced customer service and flexible financing options are also being prioritized to ease the buying process.
Editor: With higher margins being given to retailers, does this suggest that brands are keen to make the most during this festive season?
Arun: Exactly. Brands are willing to offer higher margins to retailers to ensure their products are prioritized and promoted. They understand that consumers are more likely to purchase during festive seasons when purchasing sentiments are high. It’s essential for them to carve out a larger share of the market, particularly with increased competition.
Editor: Looking ahead, do you anticipate this trend in smartphone sales to continue beyond the Diwali season?
Arun: While Diwali typically sees the highest spike in sales, the momentum can carry over into the subsequent weeks, especially with the holiday season approaching. Consumers are increasingly looking for ways to stay connected, and with technology evolving rapidly, new model launches will likely continue to stimulate sales.
Editor: Thank you, Arun! It’s been enlightening to delve into the dynamics of smartphone sales during this festive season. Do you have any closing thoughts for our readers?
Arun: It’s essential for consumers to remain informed about the best deals and not rush into purchases. Comparing prices and checking for hidden costs, especially when considering exchange offers, can lead to more valuable purchases. Happy shopping!
Editor: Thank you, Arun! And to our viewers, we hope you take advantage of the incredible deals up for grabs this Diwali. Stay connected with Time.news for more updates on market trends and insights.