High stalled demand backed by aggressive promotions in mid and premium segments
Despite the challenge of spares shortage, this festive season promises to be a happy season for the Indian smartphone industry, which is expected to witness record sales on the back of high demand, especially in the mid and premium segments.
According to research firm Counterpoint, around $7.6 billion worth of smartphones will be sold during the festive season that began during the first week of October, when online platform giants Amazon and Flipkart announced their annual sales and will end with Diwali on November 4. .
sales contribution
Similarly, Techcharc and mScanIt estimate that the Indian smartphone industry is expected to earn more than half of its sales during the festive quarter. About 49.9 million smartphones worth $16.9 billion are estimated to be sold during the October-December 2021 quarter, with revenue and volume-wise sales contribution estimated to be 56% and 32%, respectively, it said.
“The season is driving up smartphone sales due to high consumer demand during Dussehra and Deepawali. This year the trend has been accelerated due to strong demand growth on account of aggressive promotions in the mid and premium segments.
According to the Techarc and mScanIt survey, mid-segment (₹12,000-15,000) and premium range (₹25,000-50,000) smartphones will be the sales leaders, contributing 42% and 51.7% respectively to the total handset sales.
According to the report released by Redseer Consulting, the first week of online festive sales saw a 23% year-on-year growth, with goods worth ₹4.6 billion (₹32,000 crore) sold from brands and sellers. One of the factors driving the growth was mobile phone sales. As per estimates by RedSeer, mobiles worth Rs 68 crore were bought every hour across all platforms during the first week of the festive sale.
Smartphone brand Xiaomi had earlier announced that it sold over two million smartphones across channels in the five days of the festive sale, while rival Realme said it sold over one million smartphones in the first three days itself.
Counterpoint’s director of research Tarun Pathak said the retail average selling price (ASP) of smartphones will increase by 14% to $230. “Overall consumer sentiment has been positive. Many consumers have decided to spend something more personal than their accumulated savings. This trend will lead to faster smartphone upgrades. “
high trade-ins
He added that the season is also witnessing higher trade-in and aggressive EMIs which enhance the affordability of the device and help the consumers to overcome many price barriers. This has helped in increasing the sales of the mid to high tier smartphone models and subsequently the overall ASP.
Pathak said, “Relatively higher sales of premium segment smartphones helped offset the loss in the market at large due to the hike in prices.”
.