Smartphone retailers experience surge in sales following withdrawal of Rs 2,000 notes

• Smartphone retailers across the country have registered a huge jump in sales and purchases of mobiles after the Reserve Bank of India announced the withdrawal of Rs 2,000 notes
• Some retailers have reported 10%-11% increase in sales mainly through cash transactions
• The Reserve Bank had on May 20 announced the withdrawal of Rs 2,000 notes from circulation and urged the public to deposit or exchange the notes at bank branches by September 30

Smartphone retailers across the country have witnessed a significant upswing in sales and purchases of mobile devices following the Reserve Bank of India's (RBI) announcement to withdraw Rs 2,000 notes from circulation.

Many retailers have reported a notable 10%-11% surge in sales, primarily driven by cash transactions. In an effort to attract customers, some retailers are accepting purchases made with Rs 2,000 notes and offering attractive discounts. Displaying posters advertising these incentives outside their stores has also contributed to the rise in cash sales.

The RBI had revealed its decision to withdraw Rs 2,000 notes on May 20, urging the public to deposit or exchange them at bank branches by September 30. Since the announcement, retailers have noticed an increase in customer inquiries about purchasing smartphones and other electronic items using these notes.

A retailer based in Kolkata mentioned that although sales have not immediately picked up since the RBI's announcement, he anticipates a surge in sales as the deadline for exchanging notes approaches. Additionally, the upcoming festive season presents an opportunity for a further boost in sales.

According to Counterpoint Research, smartphone shipments suffered their worst-ever decline of 19% in the first quarter of 2023, marking the third consecutive quarter of decline. However, with the recent decision by the RBI to withdraw Rs 2,000 notes, the smartphone market is expected to experience a significant boom, leading to improved figures in the coming months.