Flipkart has seen a 40% jump in the demand for 5G-enabled premium smartphones in Tier 2 towns like Guntur, Hisar, Moradabad, Shahjahanpur, indicating a preference for high processing power, wider display, high-quality camera and more.
It also saw a 50% on-year surge in adoption of product-exchange during the first half of 2022, indicating a preference for premium smartphones through exchange constructs to make the purchase more affordable.
“This is an indication of the evolution of the smartphone<\/a> market where owning premium smartphones have gone beyond the aspirational need for customers across geographies and have become an important part of their daily lives,” said Kunal Gupta, senior director, mobiles at Flipkart.
The platform has also seen more than 60% growth in the number of new launches in the premium segment across brands like Apple<\/a>, Samsung<\/a>, Google<\/a>, Nothing, Oppo<\/a> and more.
5G smartphone shipments<\/a> reached 29% of overall shipments during the April-June quarter with the total user base crossing the 600 million mark, according to Counterpoint Research. The growth in upper and premium segments is primarily due to the availability of financing schemes aimed at increasing device affordability.
Market analysts are also seeing a rise of the average selling price (ASP) of smartphones, indicating a growing trend of market premiumisation. According to IDC India, the Indian smartphone market ASP rose by 15% on year to around Rs 17,000 during the first half of 2022, with the premium segment above Rs 40,000 seeing the highest growth rate of 83% on year.
The higher ASP, however, comes at the cost of lower demand this year. The mass segment below Rs 15,000 has felt inflationary pressures which is not expected to ease anytime in the second half of 2022, according to IDC India in its quarterly report for the April-June quarter.
The premium segment, which contributes 6% of the market, is led by Apple with 53% market share, followed by OnePlus<\/a> with 19% share and Samsung with 15% share.
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