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The average sale price (ASP) of smartphones in India could rise 18 percent by the end of the year to reach $190-$210 (Rs 13,000 - Rs 15,000), according to a report
by The Economic Times.
Higher demand for mid to premium segment smartphones will push up the price, Tarun Pathak, Associate Director at Counterpoint Research told the paper.
In 2018, the average cost of an Android smartphone was roughly $158 in India, according to research done by the International Data Corporation (IDC).
Smartphone shipments in India rose 14.5 percent in 2018 to 142.3 million units, according to IDC data.
Consumer spending in the APAC region increased in 2018 but demand declined. India bucked the trend by reporting a strong sales volume.
Cash backs and trade-in offers could give an incentive to Indian users in the mid-segment to upgrade their smartphones.
“Even as big handset players like Samsung are trying to intensify competition in the Rs 9,000 to Rs 15,000 segment; a majority of other players will attempt their maximum launches in the price range of Rs 25,000 and above,” said Faisal Kawoosa, founder of TechArc told The Economic Times.
Kawoosa expects the ASP of smartphones in India to touch Rs 19,000 by the end of the year.
"Almost all the brands which were able to find traction in 2018 via e-tailers partnerships have already started their offline foray to establish themselves for the long-term. This has become more crucial as the new e-commerce guidelines come into force from February 1, 2019," Navkendar Singh, Associate Research Director at IDC India said in a report.
In 2018, Xiaomi has the highest market share (28.9 percent), followed by Samsung (22.4 percent), according to IDC data.