EMIs, pre-used units drive Diwali smartphone sales

Full-year sales of smartphones to be tepid in world's second-largest smartphone market

- Shouvik Das

Refurbished smartphones and no-interest financing schemes spread over two years became the clear demand drivers for retailers in last week’s Diwali sale, which were better than industry expectations, insiders said. The two factors combined to offer a silver lining for India’s smartphone sellers, even as organic demand for smartphones continued to remain tepid at best in the second-largest smartphone market in the world.

“Even as other appliances categories remained flat, our Diwali smartphone sales saw a 40% year-on-year growth. The introduction of zero-interest, two-year financing schemes for smartphones was the biggest driver of sales, even as buyers continue to hold on to their phones for more than 20 months," Nilesh Gupta, MD of electronics retailer Vijay Sales, said.

Kailash Lakhyani, president of industry body All India Mobile Retailers’ Association (Aimra), said the zero-interest, two-year instalment plan was a driver of sales for small physical retailers, too.