The festive sales slump follows an existing unit volume decline of over 10% recorded between January and September. Rising memory expenses pushed smartphone retail prices up by 35% to 40% and television prices up by 20% to 25%, deterring budget-conscious consumers. While premium categories like televisions 65 inches and larger continue to grow, the entry segment faces ongoing strain. Contract manufacturers have halted machines as circuit board costs for 32-to-43-inch sets hit $80, with vendors projecting further climbs to $110 next year.
Key points
Manufacturers are cutting production by up to 20% to clear excess stock after missing cru…: Manufacturers are cutting production by up to 20% to clear excess stock after missing crucial festive targets.
Entry-to-mid-range devices are suffering the sharpest drops in consumer demand while high…: Entry-to-mid-range devices are suffering the sharpest drops in consumer demand while higher-end categories continue to grow.
Component costs for 32-to-43-inch television printed circuit boards are expected to rise…: Component costs for 32-to-43-inch television printed circuit boards are expected to rise from $80 to $110 early next year.
Sources checked by our analysis pipeline: 1
Production is likely to be up to 20% below planned levels over the next two-three months, following a decline of about 25% year-on-year so far in sales volume in this festive season, according to leading brands and contract manufacturers.
Surging memory chip costs have pushed up smartphone prices by 35-40% and television prices by 20-25% on average, severely denting demand in the entry-to-mid-range segment, which accounts for the lion's share of the market.
Memory Prices Take a Toll
Industry executives said memory prices have increased two to three times in the past 10 months as demand, led by the AI sector, outstrips supply."Smartphone production is going to come down by 20%," said Pradeep Jain, managing director at Jaina Group, a contract manufacturer. He expects some recovery next year as consumers eventually replace their devices despite higher prices.
The festive season setback follows a decline of more than 10% year-on-year in smartphone and television unit sales in January-September, executives said. The festive season, spanning Onam to Diwali, accounts for nearly 30% of annual sales for both categories.
Mounting regional instability across the Middle East has prompted Singapore Airlines to halt key Middle Eastern routes well past its original December deadline. The protracted suspension responds directly to rising security threats involving Israel, Iran, and Houthi combatants. Travelers on the affected schedules face extended travel disruptions, though the carrier is processing complete refunds for all unutilized bookings.
Hyderabad consumer protection authorities held both a dairy producer and a local shopkeeper accountable for health hazards caused by substandard cold chain maintenance. The forum emphasized that commercial food suppliers cannot deflect blame when retail storage failures compromise perishable dairy products before their stamped expiration date. Regulatory oversight now expands as national food safety inspectors evaluate the systemic storage lapses exposed by the contaminated purchase.
Heavy one-time costs during the second quarter weighed heavily on the pharmaceutical giant's bottom line despite healthy underlying demand. Meanwhile, commercial expansion remained solid as core operations generated double-digit sales gains across multiple regions. This resilient top-line performance highlights ongoing strength in the company's key prescription and international territories.