Analyst: Indian residents buy less cheap phones

Inhabitants of India have started to buy less cheap phones in the past year. This is according to figures from analyst firm Counterpoint Research. While in 2020 more than 40 percent of phones were below roughly 115 euros, that is now about a quarter.

The market for telephones above about 350 euros 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. Also, manufacturers have set up loan financing structures 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 manufacturers’ market shares. Samsung has now taken over the market leadership in the country from Xiaomi. Xiaomi has mainly focused on low-cost phones in recent years, while Samsung has released more models in the mid-range 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 usually lower, but due to the high volumes, manufacturers develop phones specifically for the country.