Festive season to see record smartphone sales of $7.6 B: Counterpoint
The smartphone retail average selling price (ASP) during the festive season is also expected to grow 14 percent to reach its highest ever at $230 (about Rs 17,200). High consumer demand in the mid and premium segments is expected to drive sales.
Smartphone sales in the country are expected to touch a record $7.6 billion (about Rs 56,858 crore) this festive season, according to research firm Counterpoint.
The smartphone retail average selling price (ASP) during the festive season is also expected to grow 14 percent to reach its highest ever at $230 (about Rs 17,200). High consumer demand in the mid and premium segments is expected to drive sales.
Counterpoint senior analyst Prachir Singh said the festive season has been driving smartphone sales in India due to high consumer demand during Dusshera and Diwali.
"This trend has been accelerated this year by the high pent-up demand backed by aggressive promotions in the mid and premium segments. We estimate that almost $ 7.6 billion worth of smartphones will be sold during the ongoing festive season," Singh said adding that this highest-ever number is coming at a time when the global smartphone industry is facing component shortages.
As a result, OEMs have been forced to increase prices, which will have a higher impact on the mass market and budget segments, Singh noted.
Counterpoint Research Director Tarun Pathak said although the growth in market value during the 2021 festive season is expected to be 1 percent year-on-year, the retail ASP will grow at 14 percent year-on-year.
"The overall consumer sentiment has been positive going into the festive season. Many consumers have decided to spend from their accumulated savings for something that is more personal. This trend will drive a faster smartphone upgrade during the festive season," he added.
Apart from this, the 2021 festive season is seeing higher trade-ins and aggressive EMIs that increase device affordability and help consumers bypass multiple price barriers, Pathak said.
"This has helped drive the sales of mid-to-high tier (more than $ 200) smartphone models and, subsequently, the overall ASP. Many OEMs sensed this trend and brought out aggressive offers on premium devices," he added.
The relatively higher sales of premium segment smartphones also helped offset the losses in the mass market due to price hike, he pointed out.