Country’s third largest handset maker Micromax today said consumer sales have taken a 25-30 percent hit following demonetization. Besides suffering sales online, the company said its supply chain was dented and there was a 15-18 percent decline in sales in the last few weeks. Also Read - Micromax In 2b first impressions: A decent desi phone at budgetAlso Read - Micromax In 2b launched with 5000mAh battery, 6GB RAM in India: Check price, specs
“Consumer sales have come down 25-30 percent, especially because online sales have been hit as many orders were in cash-on-delivery mode. In the last 3-4 weeks, the supply chain has also got impacted. While at places it has been impacted by 15-18 percent, in some cases it’s as high as 60 percent,” Micromax Chief Marketing Officer Shubhajit Sen told PTI. He added that the situation is gradually returning to normal. “It’s not that the market collapsed, it has become a little difficult,” he said, adding that the company is offering higher credits to distributors to help tide over the situation.
Sen said the company expects the situation to get better as the New Year sets in. According to various reports, the government’s demonetization drive and the cash crunch that followed has hit sales of mobile handsets, including those sold online. Mobile phone industry body Indian Cellular Association has said sales have come down by 50 percent due to cash crunch post demonetization. Research firm IDC has also indicated that the sequential decline is likely to be higher in the fourth quarter, owing to the cash crunch in the country since the second week of November. ALSO READ: Micromax Vdeo 1, Vdeo 2 with 4G VoLTE support, Android Marshmallow launched, prices start Rs 4,440: Specifications and features
“This has already resulted in significant slowdown of demand across PC and mobile devices; not just in offline retail but in online channel as well, where cash-on-delivery (COD) contributes to a substantial portion of the sales,” IDC had said. The fourth quarter smartphone shipment is expected to see 17.5 percent sequential decline, as per IDC estimates. ALSO READ: Micromax to reportedly start making smartphones in India from March 2017