Smartphone Market Faces Festive Season Test Amid Inventory Concerns

Smartphone brands are anticipating a challenging festive season, with industry observers indicating that increasing sales will be difficult. Several brands are burdened with surplus stock from the first half of 2025, further complicated by retailers’ cautious purchasing. As a result, brands are employing strategies like discounts on older models and fast-tracking new model releases to boost consumer demand. A sales executive from a major smartphone brand noted that there was significant stock accumulation during the first half of the year, which they are now trying to reduce. Retailers are being careful in ordering because they still have a lot of inventory from last year. Xiaomi is facing the need to provide higher margins to retailers. Realme is expanding its distribution network. Transsion is also managing inventory, planning a new product launch before the festive season.