Good time to replace your gadgets, electronics — discounts are coming

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Good time to replace your gadgets, electronics — discounts are coming
BCCL
  • This festive season firms may initiate discounts and affordability schemes across a range of electronics.
  • Samsung, the largest smartphone brand, is reportedly stuck with 50 million units of unsold smartphones in distribution stocks globally.
  • Heightened inflation, supply chain disruptions had slowed down sales of expensive electronic products.
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Coming months may be a good time to buy or replace new gadgets and electronics at home as steep discounts are said to be offered at both e-commerce platforms like Amazon, Flipkart and even at stores.

Heightened inflation, supply chain disruptions since lockdown, which led to shortage of semiconductor chips, battery, boosted prices of phones and electronic products. This led to a slow down in sales eventually pushing up inventories of companies.

In the last two years, companies have not seen strong sales and their inventories are still stacked up. Sales of expensive gadgets were bound to be affected at a time when people are struggling with high prices of essentials like food, vegetables, oil etc.

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Hence to clear up some of the inventories, this festive season firms may initiate discounts and affordability schemes in the range of electronics.

"The festive season in H2, 2022 is expected to bring in some steep discounts in the Indian market. Online discount sales have increased in Q2, 2022, and we expect a renewed push to it in the upcoming quarters," said Rajeev Nair, senior analyst, strategy analytics that tracks consumer market trends to The Economic Times.

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Reportedly, Amazon and Flipkart have lined up a few sales till August with Amazon’s flagship Prime Day sale expected next month-end.

Reports say brands are also expected to launch lucrative EMI options for phones sold from their own websites or offline stores.

Samsung stuck with unsold inventory

Samsung, which is the second largest smartphone brand in India, is reportedly stuck with 50 million units of unsold smartphones in distribution stocks globally.

"Inventories have piled up, margins have been increased to dump the products with offline retailers as online channels have reduced their supply intake. So, the stocks stuck in the logistics pipeline are now being rerouted to offline channels with higher margins, and sometimes even with chargers for models that did not bundle one initially," said Arvinder Khurana, president of All India mobile retailers association (AIMRA) to ET.

AIMRA represents the over 1.5 lakh mobile retailers of India.

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Smartphone shipments forecasts for 2022 are being cut sharply as inflation hits consumer demand.

Counterpoint Research cut its 2022 shipment estimates to a 10% on-year growth, from 14% earlier predicted. TechArc in fact expects a degrowth this year from 152 million units sold last year.

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