Amazon India has seen a moderation in electronics sales volumes ahead of the festive season as higher device prices encourage consumers to extend the life of existing products. However, the e-commerce company said the category continues to witness growth in terms of sales value, Moneycontrol reported. The slowdown comes as electronics manufacturers face rising costs due to shortages of semiconductors and memory components. Analysts have projected a decline in electronics sales this year, with smartphones expected to be among the most affected categories as consumers become cautious about upgrading devices.
Rising costs impact electronics demand
“The cost price increases in electronics have been unprecedented. It is almost a black swan event for the category with the chip shortage and memory shortage,” Zeba Khan, director of consumer electronics at Amazon India, was quoted as saying in the report. Khan said the decline in volumes has not been severe enough to impact overall category growth. “There is some softness in volumes, but not to the extent that it is leading to degrowth. Volumes are not declining faster than the increase in prices. There is some volume softness, but we are not seeing the value of the category contract. In fact, we are seeing solid growth,” she said. The pressure is particularly visible in smartphones, one of the biggest segments during festive sales. Memory prices have increased sharply since September 2025, affecting device pricing and replacement cycles. Smartphone shipments also declined year-on-year during the June quarter.
Amazon focuses on affordability measures
The price increase comes ahead of major festive sales events, including Amazon’s Great Indian Festival and Flipkart’s Big Billion Days, which typically contribute significantly to annual sales. Amazon is partnering with brands and banks to provide exchange programmes, EMI options and no-cost EMI schemes. The company said such financing options played a key role during its Prime Day sale, with a significant share of electronics purchases being made through EMI facilities.
