This year, gadget prices got splashier

Yesterday, this newspaper reported that Apple had increased the prices of iPhones dramatically

Yesterday, this newspaper reported that Apple had increased the prices of iPhones dramatically. Regular readers of this column will be unsurprised. Back in July, we discussed why phone and laptop prices will go up. And that Apple and Samsung will be the last to do it. Samsung increased prices some days ago and now Apple has followed suit.

This year, gadget prices got splashier

Phones and laptops need memory but most of it is being purchased by AI companies. So, those devices you have your eyes on, aren’t going to win the battle for memory. But it is that time of the year when certain rituals begin to play out. People start to tell themselves that with Diwali around the corner everything will go on sale. And retailers will be prepping to put out banners announcing tempting EMIs. A phone that feels ambitious, seems within reach come October. But no longer

In its report earlier this week, research firm IDC said a phone that cost ₹15,000 or ₹20,000 not long ago is now selling for ₹25,000 or ₹30,000. The sensible thing to do then is if the device you have still works, hold on to it. This is why people are walking away from purchases.

How long will these high prices last? Singh believes they won’t come down before 2027. So, the sensible question to ask when the discounts arrive during Diwali is, not “how big is the discount.” Rather to ask, “what is the discount on?”

A “40 percent off” on a price that has already jumped is really not a 40 percent discount. It may be a discount on a sticker price of a device that was procured earlier before the prices went up. Then there are those little 5G phones at ₹10,000 that used to sit at the bottom of every segment. Most of those have been eased out. Instead, they have been replaced by 4G devices or a familiar mid-ranger that costs more than it did when you last looked.

Singh is also unwilling to buy the narrative that India’s appetite for 4G phones from Tier II and Tier III India has gone up. His point is “They cannot afford the 5G that used to cost that much. They need a phone. A ₹10,000 4G is what they can touch.”

On his part, Kumar suggests we look at it another way. For the same money “consumers can often choose between a new entry- or mid-range phone and a refurbished flagship offering a stronger processor, better cameras and a more premium overall experience

On laptops though a festive offer can still feel like an offer. Not because they got cheaper. Like phones, laptops too have gotten expensive, but companies need them, and IT heads have been told that when prices drop for Diwali, buy what is needed and stock up. Unlike other parts of the world, there is no concept of Black Friday or a Christmas Sale. In India, a Republic Day sale is just about becoming a thing.

As for accessories such as watches and earbuds, IDC’s research is simpler. If the pair you own still lives, this is not the year you owe them a successor.

This is not to suggest people will not buy. If a phone is cracked or a laptop must be replaced, people will buy. But how? Some vendors on Mumbai’s Lamington Road, where the unorganised electronic market thrive, claim that junked devices are being hollowed out for parts that work. It is then being reassembled to create new devices. Some of them are even being branded as new entrants into the market. “We have not seen any material impact from the practice described on either our device inflow or inventory,” says Kumar. This is why it may make sense to set aside a discretionary budget to buy if something goes wrong. But until then, it may be prudent to wait.