Prices Of Budget Smartphones May Be Increased Soon: Report
The entry-level smartphone segment is set to see an increase in prices during the October-December period in the wake of the falling rupee.
The entry-level smartphone segment is set to see an increase in prices during the October-December period in the wake of the falling rupee, says a report by ET Telecom. This means that the sub-$200 price segment or sub-Rs 16,000 segment smartphones will witness a price hike of 5-7 per cent by the end of this year.
According to the report, industry analysts were quoted as saying that smartphone brands have borne the cost of the increase in component prices due to heightened demand in the festive season, but it will change soon. An increase in prices will also push up the industry average selling price (ASP) from Rs 17,000 to Rs 20,000 in the fourth quarter (Q4) of the year, according to market research firm International Data Centre (IDC).
Counterpoint Research had also predicted an increase of 5-7 per cent in smartphone prices after the festive season sales are over.
Earlier in June, a report had said that the entry-level smartphone segment will decline sharply this year. The segment has already witnessed a sharp fall of 16 per cent in shipments in the first quarter (Q1) of 2022. The sub-$200 segment has already seen a 16 per cent drop in shipments in Q1.
Meanwhile, pricey 5G smartphones have witnessed a spike in demand during the festive sales season. According to reports, the launch of impending 5G services in India has given a boost to 5G smartphones featuring the latest technology during the ongoing festive season sales by both online channels and physical retailers.
The first week of festive sales typically sees a higher ASP every year, buoyed by consumers looking to cash in on deals and discounts on premium devices such as Apple’s iPhones and Samsung’s flagship Galaxy S series, says a report by LiveMint.
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