Demonetisation resulted in 30.5% smartphone sales drop

Vivo and Oppo enjoyed steady sales during November 2016

As India’s demonetisation aftereffect is slowly disappearing, it is now a good opportunity to see which line of work was heavily affected. In comparison with month-on-month in November when compared to October, smartphone sales fell down by 30.5%.

Upasana Joshi, the senior market analyst of IDC India is confident that drop in sales happened due to demonisation. It was also found that this not only affected customer demand, but also distribution channels. Joshi added,”The slowdown was seen across all city tiers, with a de-growth of 31.7 percent in Tier 1 cities and 29.5 percent in Tier 2,3 & 4 cities in November over October. There was a huge drop in inquiries and significantly reduced footfall at the retail. To counter this, mobile phone retailers, together with micro-finance companies, started offering zero down payment options to stir sales.”

Situation with Samsung, Oppo and Vivo

However, the China-based smartphone makers are able to improve sequentially thanks to its marketing efforts by increasing credits with distributors and better channel management. Brands such as Oppo and Vivo were able to maintain a strong demand due to promotions and various schemes. Companies like Samsung did hold out rather well due to its strong distribution.

To be fair, a small part of it could be because of the factor that people may not require to upgrade or buy a new phone.

Demonetisation resulted in 30.5% smartphone sales drop from technology

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