Consumer electronics inventory piles up as consumers pull back

Consumer electronics and smartphone makers have decided to extend their production cuts till August and defer plans for ramping up output for the festive season by a month, as demand continues to be subdued.

Company executives said production of mobile phones, televisions, refrigerators and washing machines is at 75% to 85% of original targets as inventory has piled up with consumers holding back their discretionary spending due to overall inflation. This is the first time in the last five years that the industry has cut production for such a long stretch, stretching from April-May.