In India the average selling price of smartphones rose 25 per cent year-on-year, with the mid-range category (Rs 10,000-15,000) becoming more popular to beat the budget category (Rs 6,000-Rs 8,000) for the first time time, based on data from Cyber Media Research (CMR).
According to CMR, while 53 mn mobile phones were shipped in the first quarter of the year in India, the market saw a 4 per cent negative growth. Out of these 53 mn, 23.6 million were smartphones, constituting 45 per cent of the shipments. Also 67 per cent of these smartphones were ‘made in India.’
What is interesting in CMR’s data is that in the smartphone category the higher price-band has beaten the budget option, and brands are pitching mid-range phones as the market grows flat. The average selling price (ASP) was Rs 12,983 in the quarter, while it stood at Rs 10,364 in Q1 last year, indicating a year-on-year rise.
CMR says the higher price band accounts for nearly 22 per cent of the smartphone shipments in the quarter. In a budget-conscious market like in India, this shows consumers are no longer just looking for the cheapest option and the dynamics have changed.
“This increase has been primarily due to introduction of shipments by LeEco and launch of new handsets / significant increase in shipments from Lenovo, Oppo, LG, Panasonic, Micromax, Intex, LYF (RJio) and Vivo in Rs 10,000 – 15,000 price bands. Some of the smartphones that have done exceptionally well in this price band include Lenovo’s K4 Note, LeEco’s Le 1S, Micromax’s Canvas Mega 4G, Huawei’s Honor 5X and Intex’s Aqua Freedom,” Faisal Kawoosa, Lead Analyst CMR’s Telecom Practice said.
Samsung, Micromax and Intex continue to lead in the overall mobile market. In the smartphone segment, Reliance Jio’s Lyf brand makes an appearance at number four with eight per cent of the market share.
On the growth of 4G devices, Krishna Mukherjee, Analyst, Telecoms at CMR said, “While the global players are increasingly focusing on 4G LTE technology, domestic players could still see some profits in 3G technology. Moving forward, it would be all about 4G LTE and 2016 is the year when a major transformation is expected in the telecom sector with respect to change in technology.”
He added that all eyes will be on Micromax in Q2 and how the Indian handset manufacturer performs after re-branding its logo and adopting a new approach towards marketing and sales strategy. A recent Canalys report said Micromax’s shipments had dropped in Q1, 2016.