The age of affordable 5G handsets has arrived with this category of smartphones flooding the market in the January-March quarter, The Economic Times reported. These phones have also successfully prevented a rise in prices after as many as two quarters.
The number of budget smartphone handsets in the price bracket ($100-$200) that were shipped in January-March quarter rose to 1.63 crore compared to 1.34 crore in the corresponding period in 2023, recording a rise of 22.38% (y-o-y). The number of super-premium handsets, those priced above $800, shipped in the same quarter stood at 31 lakh.
Data from market research firm IDC India revealed that the average selling price of handsets was flat at $263. This price is an indicator of the amount buyers are paying for phones on average. The flat curve in handset prices was a break from the past when double-digit rise in average selling prices were recorded over the past 12 quarters which were marked by a demand for pricier handsets.
“The mass budget segment of $100-200 which holds the majority share was declining but has seen a revival in the beginning of 2024 with affordable 5G offerings and is expected to either remain flat or grow in coming quarters,” Upasana Joshi, senior reşearch manager, IDC India, told the newspaper.
Experts attributed flat average selling price in the January-March quarter largely to a 22% on-year rise in shipments of mass budget phones ($100-200).
The manufacturers launched many 5G models that triggered the growth in the budget segment. The market was helped by extension of 5G services Bharti Airtel and Reliance Jio.
According to IDC data, Vivo, Xiaomi and Samsung made up 53% of shipments in this segment in the quarter. Experts also said that the Rs 20,000-30,000 segment is growing 60% yearly – a rate faster than any other.
The prospect of a normal to above-normal monsoon this year has sent cheer among the handset brands that expect the demand to continue.
“Truth be told, while we are number one in terms of value growth in the overall market, there is a lot of focus in driving volumes, and identifying those segments where the opportunity of upgradation is the biggest,” said Raju Pullan, senior vice president, mobile business, Samsung India.
“We will have 4G models; we will have a stronger portfolio of entry-level 5G devices this year as well. Our focus will be not only on value, but also on volumes,” remarked Pullan, emphasising that Samsung will also focus on entry-level 5G phones to help upgrade 4G users.
According to IDC India, the mass budget segment became the biggest contributor to the smartphone market in terms of volume, impacting ASPs.
Incidentally, IDC India data show, the super-premium segment is rising too. The shipments in this category, which stood at 31 lakh (in January-March 2024) was a big 47.6% jump from the 21 lakh in the corresponding quarter in 2023.
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