Now Reading: Cheapest smartphones vanish as entry-level 5G prices rise
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Cheapest smartphones vanish as entry-level 5G prices rise
India’s entry-level phone market is collapsing. Shipments of smartphones priced below Rs 9,000 plunged 74.3% year-on-year in the April-June quarter, IDC reports. The segment now accounts for just 4.5% of India’s smartphone…
The Story in Brief
India’s entry-level phone market is collapsing. Shipments of smartphones priced below Rs 9,000 plunged 74.3% year-on-year in the April-June quarter, IDC reports. The segment now accounts for just 4.5% of India’s smartphone market, down from 15.6% a year earlier. Rising component costs have made sub-$100 (around Rs 9,000) devices unviable for manufacturers.
Overall smartphone shipments fell 11.1% to 33.2 million units, but average selling prices hit a record Rs 28,400, up 14.4%. As entry-level 5G phones grew more expensive, several brands reintroduced or extended 4G models, lifting 4G's share to 11.1%. IDC expects full-year shipments to drop to 128-130 million units. Chinese brands like Vivo, Xiaomi and Oppo saw steep declines.
The Indian Opinion
The narrative that 4G is making a comeback is misleading. It is not consumer preference but a supply-side stopgap, as IDC notes, driven by manufacturers running out of cheap components. Once 4G inventory clears, budget buyers will have no option but to pay more for 5G. The real story is affordability: entry-level phones are vanishing because even Chinese brands cannot absorb the costs. The test will come during the festive season, if discounts fail to return, expect the bottom of the market to shrink further.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
