History of the weekend | Long live the party: smartphone industry to post record sales despite component shortage
Strong pent-up demand supported by aggressive promotions in mid and high-end segments
Despite the challenge of component shortages, this holiday season is shaping up to be bright for the Indian smartphone industry, which is expected to post record sales driven by strong pent-up demand, especially in the mid-to-high-end segments.
According to research firm Counterpoint, around $ 7.6 billion worth of smartphones will be sold during the current holiday season which began in the first week of October when online platform giants Amazon and Flipkart have announced their annual sales and will end on November 4 with Deepavali.
Contribution to sales
Likewise, Techarc and mScanIt predict that the Indian smartphone industry is expected to achieve more than half of its sales during the festive quarter. With around 49.9 million smartphones worth $ 16.9 billion expected to be sold in the October to December 2021 quarter, the contribution of sales in terms of revenue and volume is estimated. at 56% and 32%, respectively, he said.
“The season has boosted smartphone sales due to strong consumer demand during Dasara and Deepavali. This trend has been accelerated this year by strong pent-up demand supported by aggressive promotions in the mid-to-high-end segments, ”Counterpoint Senior Analyst Prachir Singh said.
According to the Techarc and mScanIt survey, smartphones in the mid-segment (12,000-15,000) and the premium range (25,000-50,000) would lead sales, contributing 42% and 51.7% respectively to sales global handsets.
According to the report released by RedSeer Consulting, the first week of online festive sales saw 23% year-over-year growth with merchandise worth 4.6 billion yen (32,000 crore) sold by brands and sellers. One of the growth drivers has been mobile phone sales. According to RedSeer’s estimates, mobiles worth 68 crore were bought hourly across all platforms during the first week of festive sales.
Smartphone brand Xiaomi announced earlier that it had sold more than 2 million smartphones during the five days of the festive sale across all channels, while rival Realme said it had sold more than one million smartphones. during the first three days.
Counterpoint Research Director Tarun Pathak said the average retail selling price (ASP) of smartphones will rise 14% to its highest level at $ 230. “The general feeling of consumers is positive. Many consumers have decided to spend their accumulated savings on something more personal. This trend will cause smartphones to upgrade faster.
He said the season is also seeing an increase in trading and aggressive NDEs that increase the affordability of devices and help consumers bypass multiple tariff barriers. This helped boost sales of mid to high level smartphone models and subsequently the overall ASP.
“The relatively higher premium segment smartphone sales also helped offset losses in the mass market due to higher prices,” Pathak said.