Kolkata Smartphone Sales Drop 16% Amid Price Hikes and Chip Cost Surge

During Navratri festive sales, unit sales of smartphones in Kolkata fell 16% year-on-year in e-commerce, according to Counterpoint Research. Despite record consumer traffic, average smartphone prices rose by 35-40%. This price surge was attributed to a two- to three-fold increase in memory chip prices, rupee depreciation, and higher freight costs. Brick-and-mortar retailers also reported a 20% drop in sales.

The decline in unit sales and the narrowing of festive discounts suggest consumer affordability is being squeezed in the market. The price increases, driven by rising input costs like memory chips and currency depreciation, indicate upward pressure on electronics supply chain costs.