Users can expect for continued offers and discounts on handsets even post Diwali, with main brands looking to clear huge inventories of festival period that stayed untraded due to “lower than expected” need, market analysts and insiders claimed. The premature onset of the season of festival this year (between September 21, 2017, and October 19, 2017) will result in a longer period of moderate demand of over 2 Months, in comparison with typically just a month post Diwali. The prolonged period of tilted sales might consequently compel some companies to provide discounts or schemes. Post the Diwali silence, demand typically revives during the New Year.
“Firms in general will have to provide some type of discounts to users post Diwali due to huge inventory in the sector,” claimed co-founder of Micromax Informatics, Rahul Sharma, to the media in an interview. He, on the other hand, claimed that his firm did not give any offers or schemes this period of festival. Senior analyst at a research firm, Tarun Pathak, claimed that exports for the quarter three concluded in September were the highest ever. “But sales have been unenthusiastic this season of festival. So we hope sellers or brands to carry on with discounts or schemes in December as well as November,” he claimed. Views of Pathak were supported by one more senior executive of the industry, who did not wish to be identified.
The quarter of October–December naturally makes up somewhere between 25% to 30% of yearly sales for the smartphone industry. Media had last week reported that handset sales at the time of the festive period concluding Diwali were anticipated to be decreased than normal, since launches and discounts across the year cannibalized unmet need that characteristically boosts purchases. Sources claimed that offline sales were banged more as compared to online.
Sellers claimed to the media that untraded stock with distributors and dealers might have to be pushed through offers such as cost cuts, but post a gap of 15–20 days. “Or else, users who have purchased handsets over the past couple of days will feel cheated,” claimed a retailer.