According to the report of Counterpoint, compared to the same period last year, there has been a decline of 30 per cent in the period October-December 2022 and 18 per cent in January-March 2023.
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A slowdown is also visible in the smartphone industry or rather the mobile industry. According to people associated with the industry, due to the continuous decline in sales in the last six months, mobile phone companies have reduced their production by 20 percent on a year-on-year basis between January and April. According to the report of Counterpoint, compared to the same period last year, there has been a decline of 30 per cent in the period October-December 2022 and 18 per cent in January-March 2023. India’s largest mobile phone retailer, Reliance Retail also said that there has been a decline in the sale of devices or mobile phones between the January-March quarter.
Production cut as per demand
Pradeep Jain, Managing Director of Jaina Group also believes that the mobile phone industry is affecting the demand not only in India but across the world. According to Pradeep Jain, companies have cut production according to the demand scenario and this pressure is likely to continue for some time. Counterpoint’s research director Tarun Pathak said that companies have cut production by 15-20 per cent. Which mainly includes entry level and mid tier phones. On the other hand, purchases are still being seen in the premium segment.
There can be improvement in the second half
According to Pathak, currently most brands have around ten weeks of unsold inventory. The lower production will continue till the April-June quarter and there may be slight improvement in the second half of the calendar year. This cut in production is for the first time in this calendar year, while the industry had resorted to similar production cuts last year in April-July and again in November-December after Diwali. But according to industry officials, such reduction was 5-10 per cent less than the current level. Atul B Lal, managing director of Dixon Technologies, says that there is no boom in the demand for mobile phones, but there is no significant decline so far as some companies are also exporting handsets from India.