The average sale price (ASP) of smartphones in India is expected to rise by up to 18 percent by the end of 2019. For any smartphone maker, revenue and profitability is crucial, and according to analysts, the ASP is expected to reach $190-$210 (approximately Rs 13,000 – Rs 15,000) by the end of 2019. The increasing affordability and great demand for mid-range smartphones with premium features will be one of the reasons to help drive the ASP.
According to Tarun Pathak, associate director, at Counterpoint Research, the mid-to-premium smartphone segment priced above $400 (approximately Rs 28,000) has a higher demand. In 2019, this demand will push the ASP to around $190, a rise of 18 percent compared to the last year.
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Pathak further added saying that the market will see a rise in demand from users who are buying their second or third smartphones. Additionally, e-commerce websites and smartphone makers are coming up with attractive trade-in and cashback offers for smartphones above $200 (approximately Rs 14,000), which will further help drive users to upgrade their smartphones, Pathak told ET.
Faisal Kawoosa, founder and chief analyst at TechArc expects ASPs to touch Rs 15,000. And while Samsung is trying to intensify things in the Rs 9,000 to Rs 15,000 segment, he expects competitor brands like Oppo and Vivo to focus on the Rs 25,000 and above price segment. The mid-segment (Rs 10,000), the premium segment (Rs 25,000) and the luxury segment above Rs 50,000 comprise of 80 percent smartphone sales in India, and this is the segment that will help take the ASP higher.
“ASP in the past two years has increased owing to more consumer demand in the $100-$200 segment and $300-$500 segment,” Upasana Joshi, associate research manager, Channel Research, IDC India told ET.