Replacing a phone can be postponed. Getting a new connection? That too can be postponed. It appears these things are being done. I guess we can expect a surge in purchases once the new notes are available.
Prime Minister Narendra Modi’s ‘demonetisation’ strategy to remove the high-value INR500 and INR1000 (<$15) notes from circulation has resulted in a sales drop of 50%, prompting several Indian manufacturers – along with Taiwan’s Foxconn – to wind down operations across their sites, leaving workers idle. Reportedly, Foxconn – which is the largest electronics manufacturer in the world, which makes devices for Apple along with major Chinese firms such as Gionee, Oppo and Xiaomi – has given 8000 of its factory workers two weeks of paid leave as it halves its output. Indian manufacturers including Intex, Karbonn, Lava and Micromax are planning to cut between 10% and 40% of their work forces following the demonetisation initiative. Lava has shut down a plant which provides jobs to 5000 workers for at least a week, while Micromax has also reduced production at sites in Rudrapur and Telangana.