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.