According to Counterpoint Research, the COVID-19 pandemic can potentially rejuvenate the cheaper smartphone segment, which had been seeing dwindling shipment volume since the past four years. The growth in this sector will be driven by the change in purchase habit of the consumers as they cut back on discretionary spending and buy phones only for immediate needs.
The study highlighted that the share of entry-level smartphones, which are priced below Rs 5000, has reduced from 12 per cent in 2017 to 4 per cent in 2019. Meanwhile, the share of basic smartphones, which are priced between Rs 5000 and Rs 10,000, fell from 45 per cent to 42 per cent during the period under consideration.
Counterpoint Research predicts that the downward trend in both categories is likely to stabilise as both price bands will continue to hold their current market shares. Further, this could lead to a fall in the average selling price (ASP) for smartphones by 10-15 per cent from the current $180.