Islamabad Special report – A fierce price war has erupted in the mobile phone market, with major brands and Chinese competitors locked in an intense battle for dominance. Industry insiders reveal that this struggle is fueled by aggressive undercutting and alleged clandestine deals, creating a chaotic and unsustainable market.
Sources report that a leading brand recently met with its distributors, offering a 5% “under the table” payment as an additional profit incentive to combat the escalating price war. This move comes in response to reports of distributors offering increasingly higher percentages to dealers, with some deals reaching as high as 11%.
Industry experts explain that this aggressive discounting is driven by distributors’ desperation to meet their quarterly sales targets. Failure to achieve these targets could result in the loss of significant benefits and financial penalties. As a result, distributors are willing to sacrifice their own profits to secure sales and maintain their standing with the brands.
However, this strategy has created a volatile market where dealers are uncertain about the true value of their inventory. Experts warn that the current situation is unsustainable and could lead to the collapse of smaller dealers who cannot compete with the deep discounts offered by larger players.
Calls for greater transparency and control from the brands are growing, urging them to enforce pricing policies and prevent undercutting. Without intervention, the market is predicted to continue its downward spiral, with potentially devastating consequences for smaller businesses.
Industry insiders plead for stability and cooperation, emphasizing the importance of ethical business practices and fair competition. They urge all stakeholders to work together to ensure the long-term health and sustainability of the mobile phone market.
The situation remains volatile, and the industry awaits further developments as brands and distributors grapple for control in this increasingly competitive market.
