According to the Gartner, Mobile phone manufacturers could cut handset prices this year to increase their sales. Last quarter there was decline in the handsets sales which is bad news for handset vendors but can be good news for consumers as vendors start to lower prices to clear unsold inventory. There was a sale of 419.1 million units in the first quarter of 2012, 2 per cent decline from the first quarter of 2011. There was decline due to slowdown in demand from the Asia/Pacific region. For Asia, first quarter is the strongest one which is driven by Chinese New Year but they saw lack of new product launched from leading manufacturers, and users delayed upgrades in the hope of better Smartphone deals arriving later in the year.
Now vendors are left with unsold inventory, which they will clear by lowering prices during the next couple of quarters. However, the volatile situation of the Rupee against the Dollar could mean that some of the benefits of lowering this price might not reach Indian consumers. In the last quarter prices in India rose due to weakening of the Rupee against the Dollar in the range of 3 to 3.5 per cent. According to the analysts Rupee won't fall below this level and that therefore the price benefit might reach Indian.
Source : Themobileindian