Smartphone Prices Probably Increase By 18 Percent In India By 2019-End

The ASP (average sale price) of smartphones in the Indian market, which is crucial to profitability and revenue of mobile phone makers, will increase by nearly 18% to reach US$190 – US$210 (between Rs. 13,000 and Rs. 15,000 roughly) by the end of this year, said analysts. The high demand and rising affordability for affordable phones coming with high-end features are among reasons to drive the average sale price.

Tarun Pathak, Counterpoint Research’s Associate Director, there is likely to be greater demand for the mid-to-high-end handsets which are priced over US$400 (Rs. 28,000 roughly). And this demand is expected to push up ASP to about US$190 this year, increasing by 18% year-on-year.

In addition, Pathak said that the Indian market will witness rising demand from people buying the second or the third handsets. Besides, e-commerce sites and phone makers will be going up with cashback and trade-in offers for devices above US$200 (Rs. 14,000 roughly), which will motivate people to change their current phones, said Pathak.

And Faisal Kawoosa, TechArc’s Chief Analyst & Founder, expects the ASPs to reach Rs. 15,000 by this year-end. He also expects Samsung’s rival brands like Vivo and Oppo to pay attention on the price range of Rs. 25,000 and higher while the South Korean giant is attempting to intensify competition in the price range between Rs. 9,000 and Rs. 15,000. The market growth in mid-range (Rs. 10,000), premium (Rs. 25,000), and luxury (over Rs. 50,000) segments account for 80% of the smartphone revenue in India, which will drive the ASP go up. As per IDC India and Counterpoint Research's previous reports, the year 2016 recorded the first ASP increase after declining years. And in 2017, ASPs increased by 16% -  19% to respectively reach US$144 and US$157, compared with 2016.

Upasana Joshi, Associate Research Manager of Channel Research at IDC India, said: