FUN FACT

Every time an Indian consumer upgrades to a new phone, they are likely to buy a phone that’s costlier than their previous one.

Generally, the fourth quarter or the holiday season is high on sales. However, in 2022*, it was the first time that the Indian smartphone market experienced a slow down of 27% to 32.4 million in its season [3].

Contrarily, premium segment (>₹30,000) smartphones showcased brilliant performance and registered a double-digit growth of 11% [2]. This was the highest-ever growth of the flagship phones in Indian market. Due to this, the declining shipment share did not affect the revenue, keeping it immune from loss.

The increase in premium (>₹30,000) & ultra-premium (>₹45,000) phone purchase is also responsible for the gradual increase in the average selling price (ASP). In Q1 of 2022, the ASP rose to its highest ever with a 15% YoY growth.

The rise of premium smartphone shipment is an indication that a chunk of the Indian population is finally moving towards fulfilling its dream of owning a premium phone. The rise of a plethora of financing options like No Cost EMI, Buy Now Pay Later and the launch of 5G could be a possible reason behind the change in choice.

Supporting this analogy, a Counterpoint survey showed that people who previously bought phones ranged between ₹10,000 - ₹15,000, were now using phones from ₹15,000 - ₹20,000 band. For their next purchase, their preferred price band moved up to ₹20,000 - ₹30,000.