‘In a first in 3 years, smartphone prices stagnate in Q1 2024’

MARKET TREND. Smartphone prices flat at $263, ending rising streak, says IDC

The average selling price of smartphone units sold in India stagnated for the first time in three years in Q1 2024, according to data provided by the International Data Corporation (IDC), India.

“Smartphone ASPs (average selling price) remained flat y-o-y and q-o-q at $263, ending the streak of strong ASP rise for the last several quarters,” the organisation noted in its report on Tuesday.

PREMIUM ADOPTION

IDC told businessline that the ASP of smartphone devices had been growing for the past 12 quarters or the last three years. In Q1 2021, the ASP for a smartphone device was $176. However, as newly moneyed Indians jumped on the bandwagon of premium smartphones, it boosted the average price at which these devices were bought in the country. This is even as fewer Indians are buying smartphones in the entry segment. What appears to be causing stagnation in the first quarter of 2024 is that sales of certain higher-end smartphone segments have declined this time around.

DECLINE IN SALES

Upasana Joshi, Senior Research Manager, Client Devices, IDC India said, “The ultra-premium end and the mass belly of the market has shown growth, while the mid-premium and premium end has declined, and so has the entry-level.

Hence the ASP is almost flat.”

According to the IDC press note, “The midpremium segment ($400<$600) declined by 46 per cent in unit terms to a 3 per cent share, down from 6 per cent a year ago.

OnePlus led with a 38 per cent share, followed by Vivo and OPPO.

THE KEY MODELS

The premium segment ($600<$800) held a 2 per cent share and declined by 21 per cent in unit terms.

Key models were the iPhone 13, Galaxy S23FE/ S23, iPhone 12 and OnePlus12. Apple’s share declined y-o-y to 45 per cent, while Samsung was a close second with a 44 per cent share, up from 16 per cent a year ago.”

Apple led growth in the super-premium segment, which is phones worth $800 or more.

Overall, Apple grew by 19 per cent in Q1 2024.

OVERALL GROWTH

According to the IDC report, India’s smartphone market shipped 34 million smartphones in Q1 2024, with 11.5 per cent growth yo-y, making it the third consecutive quarter of growth in shipments.

“The first few months of the year have provided momentum for the smartphone market in India. However, the second half of the year will be crucial. IDC estimates modest overall annual growth in the mid-single digits for 2024,” Navkendar Singh, Associate Vice-President, Devices Research, IDC, said.