Smartphone Sales Decline 16% During Navratri Festive Season
This year's online mobile sales during Navratri are witnessing a significant drop due to rising prices and reduced discounts.
Online smartphone discounts have decreased to 10-25% from last year's 25-40%.
Retail footfalls have dropped by 40-50% in September, impacting sales.
The premium smartphone segment remains stable, but overall sales are projected to decline.
The online mobile sales during the Navratri festive season have started on a disappointing note, with a reported 16% decline in volumes. This downturn is attributed to increasing smartphone prices and reduced discounts, which have made it harder for consumers to afford new devices. The festive sales period, which is crucial for e-commerce platforms, began last week and is expected to contribute significantly to the overall festive business.
Counterpoint Research highlights that average discounts on smartphones have narrowed considerably this year, falling to between 10-25% compared to 25-40% during the previous year's sales. This reduction in discounts coincides with a notable increase in smartphone prices, which have surged by 35-40% due to rising memory chip costs, currency depreciation, and elevated freight charges. These factors have collectively squeezed consumer affordability during a critical shopping season.
Shubham Singh, a research analyst at Counterpoint, noted that while consumer interest in smartphones remains, the challenge of affordability is becoming more pronounced. The smartphone category typically accounts for 30-35% of annual sales during the festive season, making it a key revenue driver for major online retailers like Amazon and Flipkart. However, the current economic climate has led to a significant drop in retail footfalls, with reports indicating a 40-50% decline in September.
Despite the overall downturn, the premium smartphone segment, priced above ₹45,000, has shown resilience. However, the higher upfront costs resulting from price hikes are limiting conversions, even as demand for premium models persists. The first eight months of 2026 have seen smartphone unit sales fall by 10% year-on-year, while sales by value have increased by 4%, indicating a shift towards higher average selling prices.
Looking ahead, industry experts suggest that while demand may improve as the festive season progresses, smartphone volumes are likely to continue declining by double digits. Average selling prices across major brands have risen to around ₹35,000-37,000, allowing retailers to report marginal value growth despite the drop in sales volume. The industry is also preparing for another round of price hikes post-Diwali, which could further impact smartphone sales in the upcoming quarter.
