Mobile retailers brace for 10% price hike post-Diwali as sales slump and AIMA forecasts 50% volume drop
Summary
- The All India Mobile Retail Association (AIMA) projects a 50% decline in mobile phone sales volume after mid-November, with the slump likely to extend for an extended period.
- Retailers anticipate raising mobile phone prices by about 10% after Diwali to offset the falling demand and rising input costs.
- The expected price hike comes despite an already evident drop in sales, signalling pressure on both consumers and the mobile supply chain.
Key Facts
- · AIMA forecasts a 50% drop in mobile phone sales volume post mid-November.
- · The projected decline may persist beyond the festive season.
- · Retailers plan a 10% price increase on mobile phones after Diwali.
- · Current sales are already on a downward trajectory.
Why it matters
A sharp contraction in mobile phone sales can curb consumer spending, affect the electronics manufacturing sector, and contribute to inflationary pressures if price hikes are passed on to buyers, thereby influencing overall economic growth and fiscal revenues.
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