Multiple industry insiders indicated that companies that create mobile phones, televisions, and refrigerators have begun lowering production objectives by 10% until July due to declining demand as a result of repeated price rises. Almost all phone manufacturers have changed their production plans, while consumer electronics businesses are finalizing plans based on inventory levels, they added.


"Since mobile phone sales are down by around 30% year-to-date, the industry is decreasing output by 10% below what was originally intended," said Pradeep Jain, managing director of Jaina Group, which produces smartphones for a number of prominent brands in addition to selling its own Karbonn brand. "Companies are concentrating on stock liquidation," he stated.


On the condition of anonymity, the managing directors of two major electronics contract manufacturers stated their mobile phone clients and even lighting equipment customers were adopting similar moves.

Prices of mobile phones and appliances have increased by 9-15 percent in the last year.


From the January-March quarter, mobile phone sales began to decrease, with researcher IDC India projecting a 5% drop in shipments over the same period previous year and prices reaching a lifetime high. According to the study, the most impact is felt in the Rs 10,000-30,000 price range, which accounts for the majority of the market.

With demand decreasing, businesses are anticipated to re-calibrate their production schedules, according to IDC India research director Navkendar Singh.


For the next 2-3 months, demand for mobile phones and appliances is expected to be lower.
According to the companies, the impact is greater in entry-to-mid-level items and rural markets.
They are concerned that a sizable portion of the population may cut back on discretionary expenditure.
In the last year, electronic device prices have risen by 9-15 percent.
If demand does not return, companies may postpone or temper future price increases.

"The supply situation is improving. However, unless demand increases significantly in the second part of the year, India's entire smartphone industry may face growth hurdles this calendar year "he stated

According to estimates, component, input, and logistic prices have increased by 9-15 percent in the last year, causing prices of mobile phones, televisions, refrigerators, and washing machines to rise by 9-15 percent.


This comes at a time when global supply chains are being impacted by the Russia-Ukraine conflict and China's protracted Covid shutdown. Agri-commodity, petrol, and grocery prices are rising, while bank interest rates are hardening, CEOs added, all of which have begun to impair consumers' discretionary spending.

While the government has taken some initiatives to curb inflation, industry experts predict that customers will remain cautious in the near future.