Rs 14,000 is average selling price of smartphonesNew Delhi: Heavy demand for premium smartphones, driven by sharp discounting by brands during the ongoing ecommerce sales, are set to push average selling price of smartphones higher, market trackers said.

The average selling price, which was expected to fall below Rs 11,000 due to the economic impact on consumers, has actually risen to Rs 14,000, analysts said. This is because, for the first time, the market has seen the widest portfolio of premium smartphones with sharp price drops, of up to 60%, at the start of the festive season .

“Although the bulk of purchases are still in the Rs 10,000-15,000 price category, there is also a relatively increased sell out in high-end phones due to large discounts and promotional offers, which brands are pushing,” said Tarun Pathak, research director at Counterpoint.

Several research firms estimate that this year’s festive week, marked by Amazon’s Great Indian Festival and Flipkart’s Big Billion Days, could outperform previous year’s smartphone sales.

“This year’s festive season sales are on track to overtake last year’s sales,” said Amit Sharma, analyst-Industry Intelligence Group at CyberMedia Research (CMR). “The pent-up consumer demand is coming especially from Aspirational India, including many first-time ecommerce buyers, from tier II, III cities and beyond.”

He added that besides work and learn from home needs, revenge buying amongst premium consumers is also high.

ET had reported that industry consultants Forrester Research and RedSeer Consulting are pegging cumulative sales by Amazon and Flipkart from October 15 to 22 at about $4.7 billion (about Rs 35,000 crore) on average.

READ  Samsung expands online smartphone range in India to woo holiday shoppers - Yahoo News

For smartphones, TechArc has pegged total sales in the current quarter at 41 million units against 36.9 million in the corresponding quarter last year. Out of these, 15 million will be sold in this six-day period alone by the two e-tailers. This number would be 74.7% of the total online sales expected in this quarter, Faisal Kawoosa, founder and chief analyst at TeachArc, said.

CMR’s Sharma said niche and nascent brands such as LG and Asus are potentially positioned to grow their market shares this quarter as online platforms provide a level-playing field for every brand, which is able to match the demand supply gap.



Please enter your comment!
Please enter your name here