India to see record smartphone sales at $7.6 bn in festive season

NEW DELHI: At a time when the global smartphone industry is facing component and chip shortages, the festive season in India is set to witness a record smartphone sales at $7.6 billion (nearly Rs 56,880 crore), with the retail average selling price (ASP) growing by 14 per cent to reach its highest ever at $230 (a little over Rs 17,000), a new report showed on Thursday.

According to Counterpoint Research, the festive season is seeing higher trade-ins and aggressive EMIs that increase device affordability and help consumers bypass multiple price barriers. This has helped drive the sales of mid-to-high tier (more than $200) smartphone models and, subsequently, the overall ASP.

"We estimate that almost $7.6 billion worth of smartphones will be sold during the ongoing festive season. This highest-ever number is coming at a time when the global smartphone industry is facing component shortages. As a result, OEMs have been forced to increase prices, which will have a higher impact on the mass market and budget segments," said senior analyst Prachir Singh. High consumer demand in the mid and premium segments will drive the sales.

Although the growth in market value during the 2021 festive season is expected to be 1 per cent (on-year), the retail ASP will grow at 14 per cent (YoY). (IANS)

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