Smartphone retailers forced to pay salaries out of their savings as sales dry up

All India Mobile Retailers Association (AIMRA) expects a further 10-15% hike in smartphone prices in 2026, which has already gone up by 10% due to rising memory component prices coupled with USD-INR fluctuation, and has created an unsustainable cost environment for manufacturers. “We are witnessing a shift where component costs are no longer stable,” said Kailash Lakhyani, Chairman, AIMRA. “Leading brands like Xiaomi, Realme, Vivo, and Oppo have already been forced to hike prices on fast-selling models. While some brands have increased the MRP directly, others are hitting consumers indirectly by withdrawing bank cashbacks, ending zero-interest EMI schemes and cutting back on retail sell-out support,” added Mr. Lakhyani. AIMRA Chairman had met global tech leaders in Hong Kong, including the VP of Xiaomi and the CEO of Realme, and has issued a stark warning regarding the future of the Indian smartphone market. The retail body said that the impact on the Indian mainline retail market has been severe. Despite high hopes for a year-end recovery, consumer footfall has drastically plummeted since Diwali. December is trending worse than November and September this year, noted both AIMRA and Organised Retailers Association (ORA). It has forced many small and large-scale retailers to pay staff salaries and store rents out of their own pockets as sales dry up. Meanwhile, the retail association is optimistic on the upcoming January 2026 launches like of the Xiaomi Note series, Oppo Reno series, and Realme 16 series to bring consumers back to the shops. However, the long-term outlook remains challenging. “2026 is shaping up to be the toughest year on record for OEMs, NBFCs, distributors, and retailers alike,” Mr. Lakhyani added. “We expect a drop in unit volume, even if the total market value appears to rise due to higher price tags. The survival of the ecosystem will depend heavily on how brands manage their EMI offers, marketing support, and consumer incentives in the coming months,” he concluded. Published - December 27, 2025 02:05 pm IST

Preview: ~328 words