Analyst: Indian residents buy fewer cheap phones

Residents of India have started buying fewer cheap phones in the past year. This is evident from figures from analyst firm Counterpoint Research. While in 2020 more than 40 percent of phones were under roughly 115 euros, that is now about a quarter.

The market for phones above approximately 350 euros actually increased from 6 percent to 11 percent in the same period. writes Reuters based on those figures. In the category between 115 and 350 euros, the share increased from 53 percent to 62 percent of the market.

According to Counterpoint, residents of India are looking for more expensive phones that can do more and have a better screen for video consumption, among other things. Manufacturers have also set up structures for financing through loans to buy more expensive phones than many consumers in the country can afford at once. As a result, the number of more expensive phones has also increased.

The development has major consequences for the market shares of manufacturers. Samsung has now taken over the market leadership from Xiaomi in the country. In recent years, Xiaomi has mainly focused on cheap phones, while Samsung has released more models in the midrange and high-end market.

India is the second largest country for smartphone makers in the world after China. Due to the relatively low wages, prices are generally lower, but due to the high volumes, manufacturers develop phones specifically for the country.