Analysts TOI spoke to estimate average selling prices (ASPs) of smartphones<\/a> at their highest-ever levels of around $230-$240, almost a 15%-20% rise from same time last year, pushing first-time buyers and upgraders of devices<\/a> to pay more even as brands and e-retail platforms woo them with discounts.
The number of smartphones set to be sold this festive season is also likely to decline around 10% from last year due to tapering consumer demand, they added. However, 5G is expected to be a major driver of sales in the premium category as smartphone makers accelerate on 5G models.
Prachir Singh, senior analyst at Counterpoint Research<\/a>, said the smartphone market is likely to post a 9% YoY decline in terms of unit sales this festive season. However, due to rising ASPs, the sales are set to hit a record $7.7 billion, he added. Counterpoint estimates one out of every three smartphones sold during the festive season to be 5G enabled, and global research firm IDC said that with the recent announcements by government, 5G devices are likely to get a major push in the season, with their contribution touching a high of almost 40% up from just around 15% last year.
“Overall, IDC for now is anticipating a flat\/low single digit YoY growth in June-September quarter ... Currently the supply overall is in place, instead the consumer demand has been tapering since beginning 2022. This might lead to declining annual shipments for 2022,” Upasana Joshi, research manager, IDC India, said.
Redseer Consulting said that in the first four days of the festival season, mobiles<\/a> worth an estimated 11,000 crore were sold by the large e-commerce players, and in terms of units, 60-70 lakh mobiles were sold. “Premium phones (iPhone 12, 13, OnePlus<\/a>) have driven mobile sales for the first four days,” the firm said in a note on Tuesday.
Prabhu Ram, head of Industry Intelligence Group, Cyber Media Research, said that estimated inventory with vendors currently at more than 2-months level, clearing the old stock will be one of their biggest challenges. “You can expect promotional offers, discounts, and lucrative schemes to be offered by brands to attract consumers from aspirational India, mainly tier 2 and tier 3 cities and towns,” he said.
Smartphones have been a major driver of the festive sales<\/a>, especially on the e-commerce channel. This year, the shopping season has already kicked off in the last week of September with e-commerce giants Amazon<\/a> and Flipkart<\/a> already announcing their marquee Great India Festival and Big Billion Days sales respectively. A spokesperson for Amazon said that smartphones have witnessed a strong double-digit growth versus last year and a 20X uplift versus an average business day. “5G smartphones saw a strong uptake alongside customers showing a preference for mid-tier to premium smartphones,” the spokesperson said.
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