Smartphone shipments in India drop for the third consecutive quarter as prices continue to rise

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Smartphone shipments in India drop for the third consecutive quarter as prices continue to rise
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Smartphone prices have been rising for quite some time now. There has been a steady increase in the prices of even the budget devices, with smartphones with similar features costing higher than what they did a few years ago.
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According to a report by the International Data Corporation (IDC), the average selling prices (ASPs) of smartphones continued to rise for the fourth consecutive quarter in India, hitting an all-time high of $211 (nearly ₹16,323) in the January-March quarter, on the back of increased prices both for existing and newly launched devices.

While MediaTek-based smartphones had a market share of 51% at an ASP of $174 (about ₹13,461), Qualcomm made a recovery, increasing its market share to 28% with an ASP of $244 (nearly ₹18,870), according to the report.

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The sub-$200 segment struggled as shipments dropped by 16%, but the mid-range segment of $200-$300 grew to 18% share from 14% in the first quarter.

It is to be noted that 5G smartphones accounted for around 31% of the total devices shipped in the country. 5G is expected to commercially rollout by the end of the year.

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Overall, India smartphone shipments declined for the third consecutive quarter, shipping 37 million smartphone units in the first quarter, a drop of 5% (YoY).

The opening of the year was relatively slower as compared with 1Q21, due to the impact of the third wave of COVID, tight supplies especially for the low-end price segments, and rising inflation leading to increasing end consumer prices, the report mentioned.

The pandemic-induced surge in eTailer shares over the past two years subsided with a marginal drop to 49% in Q1, but with 7% YoY growth in shipments.
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