India sees record smartphone sales worth ₹61,000 cr . this holiday season

India is likely to witness record smartphone sales this holiday season, at around $7.7 billion (more than $61,000 crore), and 1 in 3 smartphones sold during the holiday season will support 5G, a report found on Tuesday. .



According to Counterpoint Research, e-commerce channels are expected to account for 61 percent of total sales, up from 66 percent last year.

The average selling price of the smartphone (ADDER) will grow 12 percent over the holiday season to hit an all-time high at $242, though unit sales may fall 9 percent (year-on-year).

India’s smartphone market is entering this festive season with its all-time high channel inventory of more than 10 weeks, the report said.

“The holiday season was the peak of the smartphone market in India, where nearly 20 percent of annual sales take place in four to five weeks. Therefore, this holiday season is important for all players in the value chain,” said senior analyst. Prachir Singh.

This year, sales kick off on September 23 with Amazon’s Great India Festival and Flipkart’s Big Billion Days.

“Our forecast is for smartphone sales to be around $7.7 billion during the holiday season, the highest ever. However, we estimate a 9 percent year-over-year decline in terms of shipments. We’ve seen a similar trend this year on the 618 festival in China, where shipments fell 10 percent year-on-year,” Singh noted.

The festive shopping season ends with the Diwali sale.

According to research director Tarun PathakThe retail ASP (average selling price), comparable to total value, will be the highest ever and could grow 12-15 percent year-over-year.

Consumer demand is likely to be high, especially in the mid and premium segments. The various promotions and offers targeting the Rs 15,000 segments have already been announced by the brands and social media channels.

“The increasing affordability of these devices as a result of promotions and offers will boost their sales. This will be further supported by the 4G to 5G migration. According to our estimates, one in three smartphones sold during the holiday season will 5G smartphone,” says Pathak.

As for channels, the offline market players are pushing promotions and offers similar to their online counterparts.

“Entry-level and budget segments have seen significant declines in recent quarters. However, we expect these segments to grow during the holiday season, although growth may be limited as consumers in these segments are under pressure from macro -economic headwinds,” Pathak added.

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