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By Faisal Kawoosa
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A recent scoop by an international publication has sent out jitters throughout the smartphone industry in India. As per the news published, it was reported that the Chinese origin smartphone brands will be disallowed to participate in sub Rs 12,000 category in the market. While one cannot raise any suspicion on the credibility of the publication, it looks unlikely that the digital friendly government will take any such move. Reason being, its going to be hurting the consumer interests.
In India, smartphone has posted one of the glorious growth trajectories for brands of any and every origin. Irrespective of the country, these brands would belong to, they have seen tremendous market growth over a decade and for some India is either their primary or second-best markets worldwide. Consequently, these brands have also made significant commitments by setting up factories, establishing R&D centres, creating jobs and investing in retail setup. Many of them have also been actively participating in various flagship digital programmes and supporting the government vision.
In 2010, when the smartphone journey was just in its infancy in India, the average selling price or ASP of a smartphone was a little over Rs 19,000. The contribution of sub Rs 12,000 segment was just 58%. This was primarily because the global brands like Apple<\/a>, HTC, Samsung<\/a>, Blackberry, etc., were synonymous to the smartphones.
Then by 2015, we saw a plethora of Chinese brands in the market, who accelerated 4G smartphone device penetration in the country. One of the key reasons for their success was being able to remain affordable, hence for the mass market. As a result, the ASP in 2015 was just Rs 10,800, while the contribution of Rs 12,000 smartphones was 82% of the total sales by unit volumes. Since then it has always been in the vicinity of 78-84%, though since 2021, we are seeing a dip in its contribution to total sales.
With the trend moving towards consumers buying pricier smartphones giving an impetus to sales in mid (Rs 12,000-25,000), premium (Rs 25,000-50,000) and luxe (above Rs 50,000) segments as well as due to push for 5G<\/a> smartphones in these categories, the growth in these segments has been high in the recent years, especially after 2021. But this does not mean that the importance attached to sub Rs 12,000 diminishes by any means.
For over 200 million odd featurephone users and another 70 million 4G featurephone users in India, this segment is the next logical upgrade that sets them on to a real digital journey. At the same time, out of close to 600 million smartphone users in the country, a little over 81% (485 million) are using a smartphone of less than Rs 12,000. While it is a fact that in smartphones, many users upgrade at the time of replacement, meaning they spend more, the market has equally to facilitate for the users who go for an intra-segment replacement, i.e., the users do not upgrade while replacing their smartphones, but buy a new phone within the same price bracket, which in this case is sub Rs 12,000.
The present state of affairs of local brands who are catering to this segment does not suggest that they can effectively suffice this demand. We need to have multiple players. Though there cannot be a number attached as to how many players should be catering, but one can easily suggest that it cannot be less than 7-8 brands feeding to this segment.
The Chinese origin brands have been integrally serving this segment. In 2021, out of 58 smartphone models launched within this price range, 34 (59%) were introduced by the Chinese brands, which was led by Realme with 9 smartphone models, excluding their variants. Compared to this, among Indian brands Lava<\/a> had the maximum launches at 5 models. In 2022, also, a total of 21 smartphone models have been launched in the first half (Jan-Jun’2022) in this segment. Again, out of these, 67% (14) have been launched by the Chinese brands led by Transsion’s Tecno with 4 launches during the period.
At a time, when 5G is just about to get launched and then expanded throughout the country, the optimal benefit can only be leveraged when the 5G smartphone penetrates among the mass markets. Going by the smartphone trends, sub Rs 12,000 has always been a key segment by unit sales. If we don’t have adequate players in the market serving this segment, there is a high chance of slow progress on 5G device penetration, meaning the technology, which is poised to become the bedrock of a digital revolution, will see limited adoption. By having maximum participation of brands, irrespective of their origin in this segment, we should be able to see more choice of 5G smartphones in 6-9 months of 5G launch in the country. This will not only widen the base of 5G users, which will open up innovative use cases across segments, but also help the ecosystem build unique business models positively impacting their revenue streams.
All the brands, including Chinese origin brands have significantly contributed to the creation of a thriving digital ecosystem leveraging the 4G technology where today not only B2B but G2C services are benefiting every citizen directly or indirectly. Imposing any kind of restrictions on market dynamics will only hurt consumer interests and retard our mission of digitally enabled and empowered growth, where it is envisaged to be 20% or $1 trillion of the $5 trillion economy.
(Faisal Kawoosa is Founder and Chief Analyst, Techarc)<\/em><\/strong>
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禁止来自中国的智能手机品牌子Rs 12000段将延迟5 g印度的增长
在印度,智能手机贴了一个光荣的增长轨迹为品牌的任何一个。不管,这些品牌将属于,他们看到了巨大的市场增长十多年,对一些印度是全球主要或第二市场。因此,这些品牌也取得重大承诺通过建立工厂,建立研发中心,创造就业机会和投资零售设置。
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由费萨尔Kawoosa
最近一勺国际出版已发出恐慌在整个智能手机行业在印度。根据新闻发布,据报道,乐动扑克中国智能手机品牌将不允许参加Rs 12000类别的子市场。虽然不能提高信誉的出版物上的任何怀疑,这看起来不太可能数字友好的政府将采取任何此类行动。原因是,它会损害消费者的利益。
在印度,智能手机贴了一个光荣的增长轨迹为品牌的任何一个。不管,这些品牌将属于,他们看到了巨大的市场增长十多年,对一些印度是全球主要或第二市场。因此,这些品牌也取得重大承诺通过建立工厂,建立研发中心,创造就业机会和投资零售设置。他们中的许多人也一直积极参与各种数码旗舰项目,支持政府的愿景。
在2010年,智能手机在印度旅行只是处于起步阶段,智能手机的平均售价或ASP Rs 19000多一点。子Rs 12000段的贡献仅为58%。这主要是由于全球品牌苹果宏达电,三星、黑莓等,智能手机是同义的。
然后到了2015年,我们看到大量的中国品牌在市场上,谁加速4 g智能手机设备普及率。他们成功的一个关键原因是能够负担得起的,因此面向大众市场。因此,ASP在2015年是10800卢比,而Rs 12000部智能手机的贡献被单位卷总销售额的82%。自那以后,一直在附近的78 - 84%,尽管自2021年以来,我们看到在其总销售额的贡献。
趋势向消费者购买昂贵的智能手机给人一种动力(Rs 12000 - 25000),中期销售溢价(Rs 25000 - 50000)和奢侈(Rs 50000以上)段以及由于推动5克智能手机在这些类别中,这些领域的增长已经在最近几年,尤其是在2021年之后。但这并不意味着重视子Rs 12000年减少。
了2亿奇怪featurephone用户和7000万个4 g featurephone用户在印度,这部分是下一个合乎逻辑的升级,将它们设置为一个真正的数字的旅程。同时,智能手机用户接近6亿,略高于81%(4.85亿)使用的是智能手机的不到12000卢比。虽然是一个事实,在智能手机领域,许多用户升级替换的时候,这意味着他们花更多,市场同样为用户去促进intra-segment替代,即。用户不升级,更换他们的智能手机,但买一个新的电话在同一价格括号,在本例中是12000卢比。
目前的事态的本土品牌迎合这部分并不表明他们可以有效地满足这种需求。我们需要有多个玩家。虽然不能有附加多少玩家数量应该是餐饮,但人们很容易认为它不能小于7 - 8品牌喂养这段。
中国原产地品牌整合服务这部分。2021年,58岁的智能手机型号推出在这个价格范围内,34(59%)被引入中国的品牌,这是由Realme 9智能手机模型,排除他们的变体。相比之下,印度的品牌熔岩在5的最大发射模型。2022年,共有21个智能手机型号也已推出的2022年上半年(Jan-Jun)在这段。这些,67%(14)发起的中国品牌由Transsion Tecno 4启动期间。
,当5 g只是得到了然后在全国扩张,最优效益只能杠杆时5 g智能手机在大众市场渗透。的智能手机的趋势,子Rs 12000销量一直是一个关键部分。如果我们没有足够的球员在这个细分市场服务,极有可能5 g设备上进展缓慢渗透,这意味着技术,是将成为一场数字革命的基石,将采用有限。通过品牌的最大参与,无论他们在这部分的起源,我们应该能够看到更多的选择5 g智能手机在6 - 9个月的5 g启动。这不仅扩大的基础5 g用户,将开放创新的跨段的用例,但也帮助生态系统构建独特的商业模式积极影响他们的收入来源。
所有品牌,包括华裔大大促进了品牌的创建一个蓬勃发展的数字生态系统利用今天的4 g技术不仅B2B G2C服务是每个公民直接或间接受益。强加任何限制市场动态只会伤害消费者利益,阻碍我们的使命的数字化和授权的增长,在设想的20%或1万亿美元5万亿美元的经济。
(费萨尔Kawoosa创始人兼首席分析师,Techarc)
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