Considering the hammering that the economy received due to the pandemic and the uncertainty plaguing spending, one would've thought that when it comes to buying smartphones, people would be circumspect or conservative with choices. In that, it is intuitive to think that budget phones to be the popular picks of the time.
As it happens, in India in 2021, the premium and the quaintly named 'affordable premium' segments saw more traction than last year.
In a Counterpoint Research’s Market Lens consumer survey, 15% of the respondents were from this segment (Rs 30,000 and above). This is more than double the number of last year in the same survey. In 2020, only 7% were from this price band.
The reason? "Due to the work-from-home situation, respondents are saving more than usual. In addition, the smartphone has become an essential part of life with the rise in virtual connectivity. As a result, there is a movement in the market, with a significant portion of smartphone users looking to purchase their next smartphone from a higher price band," Counterpoint said in a blogpost.
Apparently, the numbers seen during the recent festive sale in India also bear this out.
- Realme eyes ultra-premium smartphone segment with new devices
- Xiaomi India grew by 8x in the premium smartphone market in 2021
No surprise: Online buying more preferred
In 2020, many respondents in the Rs 20,000 and above price bracket had planned to lower the budget for their next smartphone. In 2021, however, the premium and affordable premium segments have became more prominent.
Aside, the Counterpoint Survey confirmed one trend that was hastened by the pandemic: People preferring online purchase over offline buying. "This year more than half of the country’s smartphone consumers bought their devices online, compared to more than one-third last year," the survey said. The report said that aside from new buyers, there is a strong stickiness among the ones who are already using online channels.
While the Covid-19 may have been a cause, the fact that brands come up with special schemes, provide multitude of choices and price their phones aggressively for online sales has made consumers lap them up avidly.
"Along with the preference for online channels, people are also relying on YouTubers and influencers to get information for making a smartphone purchase," the survey added.
