The gap between rich and poor is also starting to appear in smartphone sales

NEW DELHI : The affordable smartphone segment is shrinking due to inflation, high input costs and component shortages, even as the premium phone market expands, showing spending by Indians More wealth is rising sharply even as their poorer counterparts cut back.

Mr. Prachir Singh, senior research analyst at Counterpoint Research.

It’s not just a smartphone. Other high-value categories, including autos, showed similar trends. One reason for this could be that affluent Indians are more immune to challenges such as inflation, which tends to hit the poor and middle classes, who spend more on food and other necessities. staples.

“This is unusual, but like other categories in India recently, it is following the same trend. Luxury items are selling well, while demand for entry is dwindling. Navkendar Singh, vice president of device research, IDC India, South Asia and ANZ, said the rich are getting richer, while the average and poor are struggling.

In the car market, for example, sales of more expensive vehicles have outpaced growth in cheaper vehicles amid rising interest rates and higher car prices. According to Crisil’s report, car sales cost Rs 10 lakh or more grew by 38% in fiscal year 22 compared to a modest 7% growth for small cars during the same period.

Similarly, sales of high-end smartphones — those that cost more 40,000 — up 83% in the June quarter from a year ago, while the market share of the budget and budget segments — below 8,000 — down five percentage points, down 17% from a year ago, according to IDC. Overall sales fell 1% in the first half of the year from last year, with no growth expected in the second half, according to IDC.

“Ideally all segments should slow down if the market is shrinking and vice versa, but what we are seeing right now is an unusual trend,” said Counterpoint’s Singh.

According to industry executives, demand for the budget and budget segments, typically below 10,000, has fallen by almost a quarter. Cons up.

“We have seen demand in the entry-level segment drop by 25% in the mobile space. That’s why companies are sitting on piles of inventory,” said Vikas Jain, co-founder of Micromax, who has now ventured into connected devices under the World of Play brand.

Brands often use discounts on existing models in case inventory piles up to make room for newer models, especially during this period when production is ramped up to meet holiday season demand. festival, starting after August. However, with consumers tightening their wallets, discounts on online and offline platforms are expected to be much higher than in previous years.

“They (brands) will have to clear inventory, so they have to cut prices sharply to bring in (consumer) demand,” Jain added.

Catch them all Tech news and Live Mint Updates. Download Mint News app to get daily Market Update & Direct Business newsletter.

Less than

Register Mint Newsletter

* Enter a valid email

* Thank you for subscribing to our newsletter.

Source link


News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button