During this year’s festive season in India, the smartphone shipment has notably surged by 6-8 percent compared to the previous year, marking a promising trend in the tech market. Analysts credit this growth to the rising demand for 5G connectivity and a significant cycle of replacements, as highlighted in The Economic Times (ET).
Most sales were driven by the introduction of 5G technology and a strong drive for device upgrades, as emphasised by industry experts. The substantial rise in general trade market share, escalating by 35-40 percent compared to around 32 percent from the previous year, reflects a notable shift in consumer inclinations observed during this festive season.
Tarun Pathak, the research director at Counterpoint Research, a well-known technology market research firm, stated that there has been a significant improvement during this Diwali season compared to the previous year. He mentioned that they are expecting an 8 percent increase in volume and a considerable 25 percent growth in value throughout the 30-day festive period, beginning with the initial online sale.
According to Cybermedia Research (CMR), a prominent marketing research and consulting agency, they mirrored this view, forecasting a 6-8 percent year-on-year increase in volume. They emphasised that a substantial three-fourths of smartphone purchases in this timeframe resulted from the shift to 5G models. Shipra Sinha, an analyst within CMR’s industry intelligence group, highlighted, “During the festive season, the affordability initiatives and EMI offers significantly influenced consumer preferences, steering them towards premium smartphones.”
According to an Amazon India representative, the company experienced a remarkable increase, selling 2.5 times the number of smartphones in the premium category compared to the prior year. The spokesperson pointed out that 60 percent of all smartphones sold were 5G capable, and interestingly, 70 percent of the orders originated from tier-2 cities and below.
Kailash Lakhyani, the Chairman of the All India Mobile Retailers Association, observed a notable rise in approvals for loans from non-banking financial companies (NBFCs). He linked this increase to smartphone brands permitting the installation of applications for overseeing instalment payments. Nevertheless, experts at IDC India foresee a probable cyclic decrease in the fourth quarter, even though there was an upsurge in shipments during October. According to Upasana Joshi, the Research Manager at IDC India, a slowdown in November and December is anticipated, potentially leading to a stagnant or a minor downturn in the overall market.
