Excess inventory drives smartphone price cuts in India
What's the story
As India gears up for a busy sales season with Prime Day, Raksha Bandhan, and Independence Day festivities, smartphone brands are offering massive discounts. The move is aimed at clearing excess inventory ahead of the major festive season later this year. According to Counterpoint Research, inventory levels in the domestic smartphone market are much higher than last year due to demand slowdown and continuous portfolio refreshes by brands.
Market dynamics
Inventory buildup started in Q4 2023
Tarun Pathak, Research Director at Counterpoint, said that the Indian smartphone market has a higher level of inventory compared to last year. He noted that this buildup started in Q4 2024 after the festive season when sales dropped sharply post-Diwali. Smartphone brands have been focusing on liquidation in H1 2025, resulting in a projected 3% YoY decline in supply while retail sales are expected to grow by the same percentage.
Sales growth
Retail sales are expected to grow by 3% YoY
Despite the projected decline in supply, retail sales are expected to grow by 3% YoY. This is mainly due to the upcoming festive season and major sales events like Amazon's Prime Day. Brands are likely to offer heavy discounts and promotions during these events to clear their stock before Diwali. Counterpoint's research indicates that Vivo, Samsung, Apple, and Motorola have leaner inventory levels while OnePlus, Xiaomi, iQoo, Realme, OPPO, and Nothing hold more stock.
Discount highlights
Deals across premium, mid-range, and budget segments
During Prime Day sale from July 12-14, Samsung will sell the Galaxy S24 Ultra 5G at its lowest-ever price of ₹74,999 with up to 12 months of no-cost EMI. Apple's iPhone 15 will also available at a discounted price of ₹57,999 during the sale. The mid-range and budget segments are not far behind with aggressive pricing strategies such as bank offers and EMI support for models like iQOO Neo 10R 5G and OnePlus 13s.