2 hrs ago
Amazon India Reports Electronics Volume Softness Ahead of Festive Sales
Electronics are becoming more expensive because some important parts are in short supply.
Because of this, some people are waiting longer before buying new phones and other devices.
Amazon India says fewer devices are being sold, but the total money spent on electronics is still increasing.
Smartphones may be especially affected because people are delaying upgrades.
Analysts think electronics sales could fall this year.
Amazon says the slowdown is not large enough to make the category shrink overall.
The company is working with brands and banks to offer exchanges and installment payments.
These options may help shoppers buy electronics during the festive sales season.
Amazon India says electronics sales volumes have softened, but category sales value continues to grow.
Higher device prices, driven by semiconductor and memory shortages, are encouraging consumers to keep existing products longer.
Smartphones are among the most affected segments, with shipments declining year-on-year during the June quarter.
Analysts expect electronics sales to decline this year as consumers become more cautious about upgrades.
Amazon is offering exchanges, EMI options and no-cost EMI schemes with brands and banks ahead of festive sales.
- Who
- Amazon India, electronics manufacturers, analysts and consumers.
- What
- Electronics sales volumes have softened amid rising device prices, while overall category sales value continues to grow according to Amazon India.
- Where
- India.
- When
- Ahead of the festive season; the article says memory prices have risen sharply since September 2025 and smartphone shipments declined year-on-year during the June quarter.
- Why
- Semiconductor and memory shortages have increased device costs, prompting consumers to delay replacements and upgrades.
Amazon India’s view
Analysts’ and consumer-demand concerns
Overall category performance
Amazon India’s view
Amazon India says volume softness has not caused degrowth and that electronics sales value is showing solid growth.
Analysts’ and consumer-demand concerns
Analysts have projected a decline in electronics sales this year, reflecting concern that higher prices will weaken demand.
Consumer purchasing behavior
Amazon India’s view
Amazon is using exchanges, EMI and no-cost EMI options to support purchases during festive sales.
Analysts’ and consumer-demand concerns
Rising device prices are encouraging consumers to extend the life of existing products and delay upgrades, especially for smartphones.
Key facts
- Affected category
- Consumer electronics, particularly smartphones
- Primary cost pressures
- Semiconductor and memory shortages
- Amazon's assessment
- Volume softness without a contraction in electronics sales value
- Analysts' projection
- Electronics sales are expected to decline this year
- Festive events
- Amazon's Great Indian Festival and Flipkart's Big Billion Days
- Affordability measures
- Exchange programmes, EMI options and no-cost EMI schemes
- Memory-price timing
- Prices increased sharply since September 2025
Quotes
Zeba Khan
Director of consumer electronics at Amazon India
“There is some softness in volumes, but not to the extent that it is leading to degrowth. Volumes are not declining faster than the increase in prices. There is some volume softness, but we are not seeing the value of the category contract. In fact, we are seeing solid growth.”
freepressjournal.in
“The cost price increases in electronics have been unprecedented. It is almost a black swan event for the category with the chip shortage and memory shortage.”
freepressjournal.in
Sources
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