A large pending inventory of over 10 weeks has seen retailers extend offers to 4G budget smartphones as well.  Bloomberg 

More expensive 5G smartphones are seeing a surge in demand in festive sales

The impending launch of fifth generation or 5G telecom services in the country has led to a boom in sales of smartphones with the latest technology during the ongoing festive sales at both online and offline retailers.

According to industry experts and analysts, nearly two out of every five smartphones sold in the first week of the gala were 5G devices, marking a record market share for these handsets in India. “The share of 5G phones among all smartphones sold in the first week should be somewhere between 30-40% of all phones sold. However, this share could be higher – but with a large inventory of more than 10 weeks, retailers have expanded offers on 4G phones in the budget segment,” said Tarun Pathak, research director at market research firm Counterpoint India. that a larger share of 5G phones in the overall pie will lead to an increase in the average selling price (ASP) of smartphones in the domestic market.” “With 5G devices largely selling at higher prices, we should see an ASP increase of around 10-12 % in the first week of this year’s festive sales,” he said.

According to Pathak, the first week of festive sales last year saw the smartphone ASP around ₹15,500 – which can potentially go up to ₹20,000 due to the greater uptake of 5G devices this year.

The first week of holiday sales typically sees higher ASPs each year, fueled by consumers looking to cash in on deals and discounts on premium devices like Apple iPhones and Samsung’s flagship Galaxy S series.

But while larger sales of low-end phones usually end up outweighing premium phones, analysts say 5G devices could drive smartphone ASP increases this year. The higher ASP comes as a boon as the overall smartphone market has remained subdued this year. As a result, smartphone vendors should report revenue growth this year despite a stagnant sales trajectory.

Sanjay Kothari, associate partner at market research firm Redseer, said gross merchandising value (GMV) during the first week of holiday smartphones could see a 20% year-on-year increase, driven by increased sales of more expensive 5G devices.

“While you have brands like Apple and OnePlus pushing premium smartphone sales with deep discounts, the low-cost 5G smartphone sector has also seen good demand,” Manish Khatri, partner at Mumbai-based retailer Mahesh Telecom, said in the budget segment. , Samsung has seen strong demand thanks to deals that have reduced the prices of entry-level 5G phones to less than ₹15,000. witness strong demand during this period,” he said.

The festive season – counted by industry stakeholders as the five-week period from the last week of September to the end of October every year – is the most valuable period for the Indian smartphone industry. These five weeks account for nearly one-fifth of the entire year’s smartphone sales, making it a key period for brands.

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