Almost all sectors are affected by the global semiconductor shortage. At the same time, the smartphone market is also facing a shortage of components. Despite the struggles, smartphone sale in India is estimated to reach a new peak during the 2021 festive season.
According to a report by Counterpoint Research, smartphone sales in India during the 2021 festive season will hit a whopping $7.6 billion. The sales began in the first week of October and they are expected to last until Diwali (November 4).
It was Amazon and Flipkart, who kicked off this year’s festive season sale (as always) with their Great Indian Festival and Big Billion Days respectively.
High consumer demand will be the key driving factor of sales this year. It will be backed up by high pent-up demand and aggressive promotions in the mid and premium categories.
However, due to the shortage of components, OEMs have been forced to hike the price of several models. As a result, sales in the budget segment will be impacted.
Therefore, brands are offering promotions on mid-range and premium models to lure in customers, just like what Canalys pointed out recently. For instance, Xiaomi is trying its best to make a name in the premium category by providing attractive deals on the Mi 11 series of devices.
Finally, due to an increase in sales of mid-to-high tier (>$200) models, the overall ASP of smartphones in India during the 2021 festive season is forecasted to grow at 14% YoY. However, the sales growth will only increment by 1% YoY.
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