Indian smartphone brands are yet to chalk out their plans and spending for next year according to a new report. Usually, brands start planning for next year by October-November, but as per the details given in an ET report, that might have been delayed this year.
The report quotes industry analysts who claim that the intense scrutiny of the brands along with the macroeconomic factors has forced companies like Xiaomi, Realme and more to reconsider their plans for 2023.
Chinese brands occupy the majority share in the Indian smartphone market, around 80 per cent to be precise, and in the past year or so, brands like Xiaomi, Oppo, and Vivo have been scrutinised for their business operations by the Indian government. Such measures have made it harder for companies to plan their finances without having investigative bodies lurking in the background.
The economic conditions haven’t helped the matter either. In the past few quarters, smartphone shipments have seen a steady drop, and the overall projection of the segment in the next few quarters isn’t rosy either.
This has compelled brands to lay off their workforce and go easy on their product lineup, to reduce inventory pile-up. We have already seen mass layoffs across the IT sector, and analysts expect the mobile industry to brace for a similar impact.
The advent of 5G is expected to boost demand for devices but the increased average selling price of these smartphones has ensured that people are either postponing their purchases or waiting for special online deals to grab a bargain. The year ends in a month’s time, so it would be interesting to see how these brands decide to go about with their plans for 2023 and if they cut down their earning expectations for the year.
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