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Diwali Smartphone Sales Reportedly Decline 20 Percent as Rising Prices Hit Consumer Demand

Diwali Smartphone Sales Reportedly Decline 20 Percent as Rising Prices Hit Consumer Demand

Smartphone sales volumes reportedly declined nearly 40 percent as consumers delayed purchases in anticipation of festive discounts.

Written by Shaurya Tomer, Edited by Rohan Pal | Updated: 12 November 2026 12:45 IST

Diwali Smartphone Sales Reportedly Decline 20 Percent as Rising Prices Hit Consumer Demand

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Highlights

Offline smartphone sales volume fell 18-20 percent YoY during Diwali
Festive demand was strong in the Rs. 30,000 to Rs. 60,000 price range
Online and offline price gaps hurt festive sales for Samsung

India's offline smartphone market is said to have witnessed a subdued Diwali festive season. A new report suggests that handset sales volumes fell, with steady footfall at retail stores. While several brands, including Apple and Motorola, reportedly saw healthy demand, others are said to have struggled to convert festive interest into sales. Retailers have also flagged growing differences between online and offline prices, which they say are affecting traditional distribution channels.

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Citing the All India Mobile Retailers Association (AIMRA)'s Diwali Retail Performance report, Moneycontrol reported that India's offline smartphone retail market recorded an 18-20 percent YoY (year-on-year) decline in sales volumes during the Diwali festive season. The report noted that physical retail stores continued to see strong footfall during the four-day period from Dhanteras to the day after Diwali.

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Demand had been considerably weaker in the preceding week, with smartphone sales volumes declining nearly 40 percent as consumers delayed purchases in anticipation of festive discounts.

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Most purchases during the festive period were reportedly concentrated in the Rs. 30,000 to Rs. 60,000 price segment, after discounts and offers, followed by the premium category. Apple and Motorola reportedly recorded strong performances, with demand for older iPhone 15, iPhone 16 and iPhone 17 models remaining healthy wherever retailers had stock available at pre-price-hike rates.

Realme, meanwhile, was among the worst-affected brands, with sales volumes reportedly declining by more than 50 percent across regions. AIMRA reportedly attributed the fall to relatively high prices compared with competing brands, a lack of new product launches during the festive period, and less attractive consumer offers.

Samsung is also believed to have struggled to meet its festive sales targets through traditional retail channels. AIMRA pointed to significant price differences between online and offline channels for models such as the Galaxy S25, Galaxy S25 Ultra and Galaxy Z Fold 8. This reportedly affected sales even at the company's exclusive brand stores.

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Smaller retailers were particularly affected in the sub-Rs. 15,000 segment, where some consumers reportedly left stores without making a purchase or opted for pre-owned and refurbished smartphones instead. Large-format retailers and modern trade outlets performed relatively better, supported by advance inventory purchases at pre-hike prices and discounts of around 12-15 percent.

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The decline reported by offline retailers comes against the backdrop of a broader slowdown in India's smartphone market. According to Counterpoint Research's India Smartphone Market Tracker, smartphone shipments in the country declined 20 percent YoY in Q3 2026, covering the July to September period. The market research firm said shipments fell to their lowest level in a decade, with rising memory prices pushing up device costs and weighing on consumer demand.

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Shaurya Tomer

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Shaurya Tomer is a Sub Editor at Gadgets 360 with 2 years of experience across a diverse spectrum of topics. With a particular focus on smartphones, gadgets and the ever-evolving landscape of artificial intelligence (AI), he often likes to explore the industry's intricacies and innovations – whether dissecting the latest smartphone release or exploring the ethical implications of AI advancements. In his free time, he often embarks on impromptu road trips to unwind, recharge, and ...More