No slump in sales due to demonetization: Lenovo

No slump in sales due to demonetization: Lenovo

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Conceding that there has been an impact on sales due to cash crunch following , handset maker  said the decline “is not as drastic” as some have made it out to be.

No slump in sales due to demonetization: Lenovo
Mobile phone industry body Indian Cellular Association has said sales have come down by 50 per cent due to cash crunch post demonetization

“It has certainly dropped but it is not as drastic as some are making it. Sales usually fall after Diwali by 15 per cent given that festive sales see a surge on offers and discounts. So, you have to take into account that as well,” Lenovo India Executive Director Mobile Business Group Sudhin Mathur told news agency PTI.

He added that the growth is now coming back and the company expects strong numbers, including for its newly launched K6 Power.

According to various reports, the Government’s move to scrap old Rs 500 and 1,000 notes and the cash crunch that ensued 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 per cent 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.

“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 per cent sequential decline, as per IDC estimates.