Three days following the demonetization announcement, iPhone sales shot up in India. Consumers rushed to buy these devices with their old currency notes. The stores booked sales by issuing backdated receipt. As per trade estimates, more than 1 lakh iPhones were sold in the three days which is nearly three-fourth of the average monthly sale of iPhone.
How Demonetization Affected Sales of High Valued Goods?
Demonetization witnessed a spurt in the sales of the luxury item in the initial week. High-value luxury and gold items registered a growth in the first 3days after it was announced that the old Rs 500 and Rs 1000 would no longer be valid after November 8, 2016.
Demonetization and iPhone
As per reports, iPhones were sold out in the neighbouring stores as well. In fact, some of the stores remained open till midnight to meet the demands of the consumers. Some stores took advantage of the situation and registered profit by selling those phones at a premium range. The rush to get rid of the devalued currency notes, led Apple to become the only smartphone company to meet its November sales before the month got over. As per estimates the company registered 20-30% growth, although the handset sales were down as compared to its annual sale.
What does the Current Prevailing Market Scenario Signify?
According to, Tarun Pathak, senior analyst with Counterpoint Technology Market Research in Hong Kong, the Indian smartphone market will register loss by 10% in the months of October to December, due to the sudden demonetization of high valued currency notes. Apple was on its way to reach its estimated target of 1 million sales in India. In fact, it had 4 lakh handsets shipped in the month of October. With pricing around Rs 60,000 to Rs 92,000 for iPhone 7 and iPhone 7 Plus respectively, Apple is the dealer of the most expensive handsets in India. Customers bought this set for themselves and for gift purposes too.
Some Stores Refused to Accept Cash
Some stores refused to accept cash with the announcement of demonetization. However, people used credit cards to buy the smartphones. Lack of cash hit the grey market badly as they were unable to sell off the phones. A huge percentage of the iPhones sold in the grey market is procured from the online stores. With cash on delivery feature stopped, the grey market registered a huge loss in the sale of iPhones.