Diwali smartphone sales decline 20% as higher prices curb demand across India’s offline market

India’s offline smartphone retailers saw fewer customers convert festive-season visits into purchases this Diwali, as higher handset prices made upgrades harder for budget-conscious buyers. Smartphone sales volumes across physical stores declined by 18–20% year-on-year during the 2026 festive season, according to the All India Mobile Retailers Association’s (AIMRA) Diwali Retail Performance Report cited by Moneycontrol.

While stores continued to see footfall during the four-day period from Dhanteras to the day after Diwali, several shoppers reportedly left without purchasing a new device. The slowdown was particularly visible in the affordable segment, where buyers either held on to their existing phones or considered refurbished alternatives instead of paying higher prices for new models.

MUST READ | How to play GTA 6 on 10-year-old Xbox One without upgrading to a new console

Why did smartphone sales fall during Diwali 2026?

The increase in memory chip and other component costs pushed smartphone prices higher, affecting demand across price categories. The pressure was especially noticeable among buyers looking for devices priced below ₹15,000. According to AIMRA, sales volumes had already dropped by nearly 40% in the week before Dhanteras, as consumers waited for better festive discounts.

Large retail chains with older inventory were able to offer discounts of around 12–15%, while smaller independent retailers struggled to match those prices. Differences between online and offline prices also encouraged some shoppers to visit physical stores to check devices before purchasing them online.

The report further noted that nearly 60% of festive smartphone purchases were financed through EMIs, indicating the role of instalment payments in helping consumers manage upfront costs.

DON'T MISS | Microsoft 365 outage continues as recovery efforts falter, disrupting Outlook, Teams and Copilot

Realme sales drop over 50% - Apple, Motorola see demand

The impact was not uniform across brands. Realme recorded a decline of more than 50% in offline sales volumes in several regions, which AIMRA attributed to higher prices compared with competitors, fewer new launches and less attractive festive offers.

Meanwhile, the ₹30,000 - ₹60,000 price segment attracted the highest festive demand. Apple reportedly saw interest in older iPhone models, including the iPhone 15, 16 and 17, where pre-price-hike stock was available, as well as the iPhone 18 Pro and Pro Max. Motorola and Xiaomi also recorded healthy demand, while Google Pixel gained traction in the premium segment.

Moneycontrol reports, AIMRA has warned that offline smartphone sales volumes could fall by as much as 50% over the next three months as festive demand cools. The association has also called for more consistent pricing across online and offline channels, alongside more affordable 5G smartphone options.