According to the data released by International Data Corporation ( IDC) regarding the monthly city level smartphone tracker, The sales of smartphones in 50 major cities in India has seen a drop of 30.5 %.
Although the steep fall is surprising, research suggest that the sales dropping is a result of demonetization. The reports relate to the month of October-November 2016. Also Upasna Joshi, senior Market Analyst of IDC India, was quoted saying “Demonetisation has impacted the smartphone market at almost all levels including the customer demand and stock movement in the distribution channels. 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 Nov 2016 over Oct 2016. 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.”
Also the analyst added that despite the dismal situation for smartphone market, the premium smartphone segment saw a growth in the following weeks. The impact of cash crunch has been seen as temporary, and the market will be back on track in the coming months.
Also the Indian companies have shown a declining trend in the recent months, loosing their major market share to Chinese manufacturers.