Demonetisation To Result In Sharp Decline of Consumer Electronics Sale, Industry Experts Speak Up

A recent IDC report states that Indian government’s decision to demonetise old 500 and 1000 Rupee notes has led to an economic slowdown across many industries across the country. In fact, the results are no different when it comes to consumer devices market. The report also predicts an immediate but temporary decline in sales of consumer electronics market in Q4 2016.demonetisation-consumer-electronics-sale-idc

In India, the consumer devices market witness slow down soon after the festive season, which is common. However, what is uncommon is the fact that this year with the demonetisation, the resultant impact will be even higher. It has already started showing a significant decline in sales across the offline market of PC and smartphone devices.

The impact on e-commerce segment is no different since it primarily runs on Cash on Deliver (COD). Having said that, check our recent analysis demonstrating some interesting data points that we are seeing on Pricebaba.

The earlier estimates of smartphone sales have been revised downwards by 4.5 per cent due to the demonetisation. The report also estimated the sharp decline in the sale by 24.6 percent and 17.5 percent of feature phone and smartphone shipments respectively in CY Q4 2016.

The tablet industry is also witnessing similar impact due to demonetisation. IDC’s Karthik J states that previous estimates of tablet sales have also been revised downwards by 3-5 percent. The report has indicated a sharp decline in tablets’ sale by 23 per cent in Q4 2016.

IDC also anticipates that demonetisation should further slow down the consumer market (including PC and laptop devices) by 33 percent in Q4 2016.

Pricebaba Talks to Industry Insiders

Pricebaba reached out to numerous industry players about the impact of demonetisation. This includes peripheral manufacturers, importers, distributors, retail stores and even used goods dealers.

After the initial lull of two weeks, used mobile dealers in Mumbai are back to business and are also accepting NEFT transfers in some cases. Some folks we spoke to as walk-in customers were also open to the idea of PayTM transfers. In our survey of local outlets and online classifieds, there has been no impact on resale prices of used mobiles.

If you are looking to sell your used mobile, do see the Pricebaba Clear Smartphone Checker App.

One accessory distributor tipped us that demand has started to pick up since late last week, with the overall impact of under 15% currently. However, the grey market dealers of cheap accessories (imported from China) who generally deal only in cash have been badly hit.

Raghav Somani, Founder & CEO of Headphone Zone commented that “We saw immediate short term impact on our sales across the board. Most affected online sales were COD orders that were stuck in courier. However two weeks into demonetisation, we are seeing normal level of sales for pre-paid orders already. The impact on high-end and luxury products has been much higher than regular day to day use products. On the positive side, we expect this phase will train a lot of consumers to shift from COD to online payments :)”.

With inputs from Annkur P Agarwal.

Tanmay Patange

Associate Editor at Pricebaba, Tanmay is working in the tech writing and content industry since 2011. His experience ranges from writing all thing tech, and sometimes with a pinch of salt. He admires Silicon Valley and HBO Newsroom the most and has a dream of becoming the next Will McAvoy some day. Contact him at

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