Festive season to see smartphone sales of $7.6 billion in India: Counterpoint

Amid the ongoing component shortages, smartphone original equipment manufacturers (OEMs) may find some cheer during the festive season sales in India that will last until November 4.

Counterpoint Research Thursday estimated that smartphone OEMs are expected to sell a record $7.6 billion worth of smartphones during the festive season and the average selling price (ASP) will grow 14% to reach its highest-ever $230 or roughly Rs 17,200.

The sales will be primarily driven by the mid-and premium segments, it said.

“The festive season has been driving smartphone sales in India due to high consumer demand during Dusshera and Diwali. This trend has been accelerated this year by the high pent-up demand backed by aggressive promotions in the mid and premium segments,” Senior Analyst Prachir Singh, commented on market dynamics during the festive season.

“We estimate that almost $7.6 billion worth of smartphones will be sold during the ongoing festive season. This highest ever number is coming at a time when the global smartphone industry is facing component shortages.” Singh said.

This has resulted in OEMs increasing the prices, which will have a higher impact on the mass market and budget segment, he said.

India’s festive shopping season this year kicked off during the first week of October when online retailing giants Amazon and Flipkart announced their Great India Festival and Big Billion Day sales.

“Although the growth in market value during the 2021 festive season is expected to be 1% YoY, the retail ASP will grow at 14% YoY. The overall consumer sentiment has been positive going into the festive season,” said Research Director Tarun Pathak.

“.. the 2021 festive season is seeing higher trade-ins and aggressive EMIs that increase device affordability and help consumers bypass multiple price barriers. This has helped drive the sales of mid-to-high tier (>$200) smartphone models and, subsequently, the overall ASP,” Pathak added.