Cheaper 5G phones chip away at average prices
affordable 5G handsets weighed on average smartphone prices in India in the quarter ended March, halting a price surge after 12 quarters. Average selling prices (ASP), an indicator of how much people are paying for their handsets on average, were flat sequentially in the first quarter at $263, said market research firm IDC India.
This follows a double-digit rise in ASPs over the last three years amid a growing appetite for higher-priced handsets since the pandemic. Flat ASP in the March quarter was largely due to a 22% on-year rise in shipments of mass budget phones priced at $100-200 at 16.3 million units, compared with 13.4 million units a year earlier, marking a resurgence from previous quarters.
“The mass budget segment of $100-200 which holds the majority share was declining but has seen a revival in beginning of 2024 with affordable 5G offerings and is expected to either remain flat or grow in coming quarters,” said Upasana Joshi, senior research manager, IDC India.
Launches of many new models with 5G support spurred growth in the mass budget segment with brands and consumers starting to leverage 5G rollouts by Bharti Airtel and Reliance Jio. IDC said Vivo, Xiaomi and Samsung made up 53% of shipments in this segment in the quarter. «Truth be told, while we are number one in terms of value growth in the overall market, there is a lot of focus in driving volumes, and identifying those segments where the opportunity of upgradation is the biggest,” said Raju Pullan, senior vice president, mobile business,
