Average selling price of smartphones up 19%
During the pandemic the consumers may have accumulated savings which would push them to buy higher priced devices.
The Average Selling Price (ASP) of smartphones have increased in the July to August period by 19% to the highest ever $226 as compared to the same period last year. This is due to Indian consumers purchasing costlier smartphones in the market which has pushed the ASP, according to a report by The Economic Times. According to analysts the ASP is now to set to cross the $240 to $266 mark by the end of the season.
Smartphones replacement are basically upgrades
According to research firm counterpoint, during the pandemic the consumers may have accumulated savings which would push them to buy higher priced devices. It added that the Indian smartphone market ASP has been on the rise, with the market crossing the monthly ASP of $200 in October and has been maintaining the trend. But on a MoM basis, the smartphone market ASP grew by 7%.
It further believes that the market will witness growth this festive season too, which may lead the ASP of the market to cross the $240 mark driven by attractive promotions and offers during the festive season, thereby helping the OEMs and channels to push the premium segment devices that boosts the ASP.
People would more or less buy smartphones, costing a little over Rs 20,000 ($267) in this festive quarter as against the annual ASP of around Rs 15,000 ($200), according to research firm TechArc. The main reason is that the market is mainly driven by replacements, which is basically upgrades in the case of smartphones.
International Data Corporation (IDC) said that higher ASPs were also due to higher priced 5G phones and price hikes taken by brands.