Smartphone average selling price sees 25% jump in Q2 | Business Line

The average selling price of smartphones in India touched $157 in the second quarter of 2017. This is an increase of $30 or 25 per cent compared to the average selling price last year, according to data provided by International Data Corporation. Smartphone price on an average was up by just 3 per cent in 2016.

Key factor
“Price sensitivity is a major factor taken into consideration by consumers while purchasing smartphones. However, with high availability of content, consumers are willing to spend extra to get the complete 4G experience,” said Alok Srivastava, Head of Business planning and intelligence and regional director of North and East from Gionee India.

Phone makers say that there is correction in pricing strategy as a number of low-cost Indian brands have found business unsustainable.

Many brands entered India with disruptive pricing that were not sustainable, now they have either increased prices after gaining their target market share or reduced operations.

Chinese handsets
An increase in the market share of Chinese handset manufacturers has also led to a surge in the average selling price of smartphones in India. “ Earlier, Indian brands with lower price points used to have a higher market share. Now the Chinese brands with phones in the middle price band have a larger share. Since the portfolio has changed from the lower price band to the middle price band, there is an upward shift in the selling price,” explains Jaipal Singh, Senior Analyst at IDC India.

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Smartphone average selling price sees 25% jump in Q2 | Business Line.