4G Phone Price: Here’s why mobile phone retailers want Xiaomi, Oppo, Vivo and Samsung to cut prices of these smartphone models

Mobile phone retailers have reportedly made a request to the top smartphone brands such as Xiaomi, Oppo, Vivo, and Samsung. According to a report in Economic Times, some of the biggest mobile retailers in the country have urged Xiaomi, Oppo, Vivo, Samsung and other smartphone brands to slash prices of 4G smartphones. Along with reduction in prices, they also want these companies to push affordability schemes and marketing campaigns to help clear piling inventory of 4G handsets.
Retailers see the demand for 5G smartphones, particularly in the sub-15,000 segment, to surge with multiple new launches lined up in December. Earlier this week, Xiaomi announced its most affordable 5G smartphone priced effectively under Rs 10,000. Oppo and Realme are set to launch similarly affordable 5G smartphones in the coming weeks.
What Mobile Retailers Association wrote in letters sent to smartphone companies
“The advent of 5G technology, coupled with affordable pricing and robust government initiatives, has created a palpable demand among consumers for the latest technological offerings,” the All India Mobile Retailers Association (AIMRA) said, in similar but separate letters to Oppo, Vivo, Samsung, and Xiaomi.
“This transition, however, has left retailers with an inventory of 4G products that are facing challenges in the current market environment,” AIMRA said, considering the fast-paced transition to 5G technology and the resultant shift in consumer preferences.

“We suggest putting extra effort into clearing the 4G stocks to rotate money for 5G products because, currently, 80% of sales are coming from 5G products (percentage may vary counter to counter), so it’s better to clear your 4G products priced above 10K,” the retailer association further said in the letter to mobile phone retailers.

Why mobile retailers want Samsung, Xiaomi, Oppo and Vivo to cut prices
The retailers have reportedly asked the brands to take proactive measures to address the presence of 4G stocks in the market. They want measures like permanent price drops, consumer schemes, affordability initiatives and higher margin on 4G stocks. All these are aimed to spur some last-minute demand for 4G smartphones in a market swiftly being dominated by 5G. India is set to become a 5G-first nation in just two years with more than 70% smartphone users expected to wield a 5G handset.
Smartphone brands, on their part, have already undertaken initiatives to clear out 4G smartphone stocks lying in shelves, with the likes of Xiaomi cutting prices by up to Rs 3,000, Realme extending additional target-based margins, and Vivo undertaking a permanent price cut.
According to Counterpoint Research estimates, “At present, only 1% of all sub-Rs 10k smartphones sold in India are 5G enabled. But this number is expected to rise sharply to 14% in 2024 and 45% in 2025.”