The approaching festive season presents a hurdle for smartphone brands aiming to boost sales, industry insiders report. Brands are grappling with unsold inventory from the first six months of the year, coupled with cautious purchasing by retailers. To mitigate this, companies are implementing strategies like discounts on existing models and accelerated launches of new devices to stimulate consumer interest.
According to a sales executive from a smartphone brand, a significant amount of stock accumulated during the first half of 2025, creating pressure to clear the surplus. Retailers are also hesitant to stock up further, given their existing inventories from the previous year. Xiaomi is now compelled to offer greater margins to retailers to aid in clearing stock. Simultaneously, the company faces challenges in recruiting in-store promoters due to stiff competition from rivals like Vivo and Samsung. The Chief Business Officer of Xiaomi India expressed confidence in achieving their plans. Realme is expanding its distribution network by adding new distributors in Maharashtra, Uttar Pradesh, and Rajasthan to reach more retail stores. The Transsion brand is also dealing with inventory buildup, planning to launch its slimmest Android smartphone to date before the festive season to boost sales.