The average price of a mobile phone is set to cross Rs 25,000 this year in India, spurred on by the trend of premiumisation and the rise of features like 5G and artificial intelligence (AI).
For long a cost-conscious market, India had some of the most affordable smartphones, as well as data costs, across the world. However, that seems to be on course to change, with brands like Apple and Samsung pushing costlier smartphones that command a premium, and finding takers amongst an aspirational customer base that only seems to be growing.
This thirst for premium smartphones will drive the total Indian smartphone market to over Rs 4 lakh crore in value for the first time, according to the India Smartphone Outlook by Counterpoint, one of the world’s leading tech consultancy.
The Indian smartphone market is evolving rapidly, with OEMs increasingly focusing on premium launches to strengthen brand equity, showcase technological capabilities and improve profitability. Brands like Apple and Samsung are leading this shift by offering competitive options in the premium and ultra-premium segments, according to a note by Counterpoint.
While Apple is seeing big traction for its iPhone Pro line-up thanks to local manufacturing and reduction of prices, Samsung’s value-focused approach is gaining it dividends. OnePlus, which is set to launch its new flagship phone next week, is hoping to make a comeback after addressing concerns related to the display and motherboard.
In the affordable segment, vivo and OPPO are attracting customers by offering advanced camera systems, all this leading the 30,000 rupees plus premium smartphone category to garner 20% of the total phone sales market this year.
The shift towards premiumisation is also being driven by consumers increasingly opting for offline stores, where they can experience premium smartphones first-hand before making a purchase, according to Counterpoint. The growing interest in AI-powered features has further motivated consumers to seek hands-on demonstrations to better understand these innovations and make more informed decisions, it noted.
