CMR says most smartphones in India go for below industry ASP
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The CyberMedia Research (CMR) report, “CMR India Mobile Pricing Index 2018”, revealed that 80% of smartphone brands are selling their handset below the average price of smartphones in India.
Consumers want sleeker and cheaper devices, even as they demand overall better user experience, all contributing to increased average sales value of smartphones. CMR says in CY2018 India was one of the few major smartphone markets that grew by around 10%. It expects 2019 to be no different.
According to Narinder Kumar, lead analyst -IIG CMR, “CY2018 witnessed growth in average sales value (ASV of smartphones largely due to upgradation. A majority of the current smartphone shipments are essentially upgrades, driven by consumers seeking more from their smartphones.”
Indian and Chinese brands contributed the most to below industry average ASV, whereas 60% of brands in above ASV segment were global brands, including Apple, Google and Samsung.
“The decline in above ASV percentage can be attributed to increasing market consolidation. There was around 10% decline in numbers of brands operating in the 4G Smartphone space. With top 10 players contributing 80% – 85% of market, there is stiff competition for rest of brands,” stated Narinder.
CMR anticipates growth in ASV in CY2019, driven primarily by increasing consumer demand.
Questions & Answers
Q.What proportion of smartphone brands in India are selling their devices below the average industry price?
What proportion of smartphone brands in India are selling their devices below the average industry price?
The CyberMedia Research (CMR) report indicates that 80% of smartphone brands are currently selling their handsets for less than the average price for smartphones across India. This trend suggests a focus on more affordable devices for consumers.
Q.Which types of brands are contributing most to the below average sales value in the Indian smartphone market?
Which types of brands are contributing most to the below average sales value in the Indian smartphone market?
Indian and Chinese brands are primarily contributing to the below industry average sales value for smartphones in India. Conversely, global brands such as Apple, Google, and Samsung account for 60% of brands in the above average sales value segment.
Q.What is driving the growth in the average sales value of smartphones, according to the lead analyst?
What is driving the growth in the average sales value of smartphones, according to the lead analyst?
Narinder Kumar, lead analyst for IIG CMR, states that the growth in average sales value for smartphones is largely driven by consumer upgradation. Many current smartphone shipments represent upgrades as users seek enhanced features and experiences from their devices.
Q.How did the Indian smartphone market perform in 2018 in terms of growth compared to other major markets?
How did the Indian smartphone market perform in 2018 in terms of growth compared to other major markets?
In 2018, India was identified as one of the few significant smartphone markets that experienced growth, achieving an increase of approximately 10%. CMR forecasts that this growth trend is expected to continue into 2019 without significant change.
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