Festive season 2021 to see record smartphone sales of $7.6 billion: Counterpoint

The Retail Average Selling Price (ASP) of the smartphone is also expected to increase by 14 per cent to hit an all-time high of $230 (approx) during the festive season. ₹17,200). Higher consumer demand in the medium and premium segments is expected to drive sales.

Prachir Singh, Senior Analyst, Counterpoint, said the festive season is driving smartphone sales in India due to high consumer demand during Dussehra and Diwali.

“This year the trend is accelerated by higher demand backed by aggressive promotions in the mid and premium segments. We estimate that around $7.6 billion worth of smartphones will be sold during the current festive season,” Singh said. The highest numbers are coming at a time when the global smartphone industry is facing a shortage of components.

As a result, OEMs have been forced to increase prices, which will have a greater impact on the market and budget segments at large, Singh said.

Tarun Pathak, director, Counterpoint Research, said that although the market value is expected to grow by 1 per cent year-on-year during the 2021 festive season, retail ASPs will grow at 14 per cent year-on-year.

“The overall consumer sentiment has been positive during the festive season. Many consumers have decided to spend a little more than their accumulated savings. This trend will lead to faster smartphone upgrades during the festive season,” he added.

Moreover, the festive season of 2021 is witnessing higher trade-in and aggressive EMIs which enhances the affordability of the device and helps the consumers to overcome several price barriers, said Pathak.

“This has helped drive sales of mid-to-high tier (over $200) smartphone models and later, overall ASP. Many OEMs sensed this trend and brought aggressive offers on premium devices,” he added.

He added that the relatively higher sales of premium segment smartphones helped offset the loss in the market at large due to the hike in prices.

This story has been published without modification in text from a wire agency feed.