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Increasing uses of smartphones, financing options translate into highest revenue

Increasing uses of smartphones, financing options translate into highest revenue
Photo Credit: Pixabay
31 Jan, 2022
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Increasing uses of smartphones due to pandemic-led work from home culture and availability of financing options increased the Average Selling Price (ASP) that pushed the India smartphone market to cross $38 billion in 2021, which is the highest-ever surge in the revenue, a report by Counterpoint Research claimed. The smartphone shipments also grew by 11% year-on-year (YoY).

The report, however, said that the shipments declined 8% YoY in the December quarter due to supply chain issues.

“The Indian smartphone market witnessed high consumer demand in 2021, making it the best-performing year,” said Senior Research Analyst Prachir Singh.

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The high replacement demand fuelled by increasing smartphone affordability in the mid-and high-price tiers due to promotions and discounts, as well as better financing options, led to an 11% YoY growth in 2021, said Singh.

Also read: India shipped a record 162 million smartphones in CY 2021, growth to continue in 2022

With 24% shipments, Chinese brand Xiaomi ruled the Indian market registering 2% growth YoY. Xiaomi grew 258% in the premium segment with Mi 11x Series. 

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Xiaomi was followed by Samsung with an 18% market share which also registered its highest-ever retail ASP in 2021. The brand led the Rs 20,000-45,000 price segment with a 28% share. Vivo, Realme and Oppo followed in the tally with 15%, 14% and 10% growth, respectively. 

The demand outstripped the supply in the last two quarters of 2021. During Q4 2021, the smartphone market declined 8% YoY. We expect the supply situation to get better going forward and reach normalcy by the end of Q1 2022, she said.

The shipment of 5G smartphones in India also increased by six times in CY 2021. 

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Research Analyst Shilpi Jain said, “India’s smartphone market retail ASP grew 14% YoY in 2021 to reach its highest ever at $227. The price hikes in the budget segment due to component price rise, increasing focus of original equipment manufacturers (OEMs) on the premium segment and increased demand for mid-range and premium smartphones due to increasing uses and availability of financing options contributed to the increasing ASP.”