The average selling price (ASP) of smartphones in India is expected to rise by about 18 percent by the end of this year to reach the Rs 13,000-Rs 15,000 price bracket, an Economic Times report, citing analysts says.
An associate director of Counterpoint research, Tarun Pathak, said that this year will see a higher demand for the mid-to-premium segment smartphones, priced above the $400 bracket (Rs 28,000), further pushing the ASP up to $190 a year.
The market will also see a rising demand from users on their second or third smartphones. Apart from that, cashbacks and offers on phones above the $200 bracket will also drive people to upgrade, The Economic Times report says.
Founder and Chief Analyst at TechArc, Faisal Kawoosa told ET that with even big brands like Samsung bringing in devices in the budget range for intensifying competition, more manufacturers look at launches in the Rs 25,000 range.
TechArch, according to the ET report, anticipates the market growth in the three sections – in the mid, premium and luxe sectors – is expected to grow at 11.6 percent, 4.6 percent and 2.2 percent respectively.
Looking at past data, the ASP for smartphones showed a rising trend for the first time in 2016. In 2017, the ASPs rose by about 16 percent and 19 percent as compared to 2016 numbers.
Industry insiders have said that the rising demand in the smartphone market has resulted in the rise in ASPs.
The ET report says that Xiaomi, the market leader can help with this rise in ASPs. if it deepens its presence in the sub-$100 segment.
(With inputs from The Economic Times.)
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