Smartphone brands slash prices to clear elevated inventory ahead of festive season

As India gears up for a packed sales calendar including Prime Day, Raksha Bandhan, and Independence Day promotions, smartphone brands are offering aggressive discounts to offload excess inventory ahead of the critical Diwali festive period.

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Domestic smartphone inventory levels remain notably higher than the same period last year, following a significant sales slowdown after Diwali 2024. The post-festive slump, combined with ongoing portfolio upgrades by brands in preparation for 2025, has led to stockpile accumulation across retail and distribution channels.

The first half of 2025 has seen a clear focus on liquidation. While the sell-in (or supply from brands to retailers) is expected to decline by 3% year-on-year, retail sales are forecasted to grow by 3% year-on-year. This mismatch is prompting manufacturers to accelerate stock clearance with flash sales, bundled offers, and exchange deals.

Inventory levels, which had eased slightly after the monsoon sales, are rising again as brands begin to restock ahead of the second half. However, the demand recovery remains modest, and consumption trends have yet to fully stabilize.

Reports suggests that brands like Vivo, Samsung, Apple, and Motorola have managed to keep their inventory leaner, while others, including Xiaomi, Realme, iQoo, OnePlus, Oppo, and Nothing, are holding higher volumes of unsold units—fueling deeper price cuts during current sales campaigns.

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