Demand for premium smartphones surges 25% on Flipkart in the first half of 2022

13 Sep 2022 , 07:57 AM

In the first half of this year, Tier-2 cities drove the rise in demand for luxury smartphones, according to online retailer Flipkart. The platform anticipates that the tendency will persist as we approach the holiday season.

In Tier 2 cities like Guntur, Hisar, Moradabad, and Shahjahanpur, demand for premium 5G-enabled smartphones has increased by 40%, indicating a desire for devices with powerful processors, larger displays, superior cameras, and other features.

During the first half of 2022, product-exchange usage also had an increase of 50% year over year, demonstrating a preference for luxury smartphones through exchange mechanisms to lower the cost of purchasing.

The number of new launches on the platform from companies like Apple, Samsung, Google, Nothing, Oppo, and others has increased by more than 60%.

According to Counterpoint Research, 5G smartphone shipments made up 29% of all smartphone shipments during the April to June quarter, with a total user base that surpassed 600 million. The availability of financing plans intended to make devices more accessible is the main factor contributing to the growth in the upper and premium sectors.

In the first half of 2022, the Indian smartphone market’s average selling price (ASP) increased by 15% year over year to over Rs17,000, with the luxury sector above Rs40,000 experiencing the highest growth rate of 83% year over year.

However, this year’s reduced demand offsets the increased ASP. According to IDC India’s quarterly report for the April-June quarter, the mass sector below Rs15,000 has seen inflationary pressures, which are not anticipated to abate anytime in the second half of 2022.

Apple holds a 53% market share in the premium class, which accounts for 6% of the market. OnePlus is second with a 19% share, while Samsung is third with a 15% share.

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