CMR anticipates growth in ASV in CY2019, is driven primarily by increasing consumer demand.
The CyberMedia Research (CMR) report, “CMR India Mobile Pricing Index 2018”, revealed that 80 per cent of smartphone brands are selling their handset below the average price of smartphones in India.
Consumers want sleeker and cheaper devices, even as they demand overall better user experience, all contributing to the increased average sales value of smartphones. CMR says in CY2018 India was one of the few major smartphone markets that grew by around 10 per cent. It expects 2019 to be no different, reported Telecom Asia.
According to Narinder Kumar, lead analyst -IIG CMR, “CY2018 witnessed growth in average sales value (ASV) of smartphones largely due to upgradation. A majority of the current smartphone shipments are essentially upgraded, driven by consumers seeking more from their smartphones.”
Where does the industry stand?
Indian and Chinese brands contributed the most to below industry average ASV, whereas 60 per cent of brands in above ASV segment were global brands, including Apple, Google and Samsung.
“The decline in above ASV percentage can be attributed to increasing market consolidation. There was around 10 per cent decline in numbers of brands operating in the 4G Smartphone space. With top 10 players contributing 80 – 85 per cent of the market, there is stiff competition for rest of brands,” stated Narinder.
CMR anticipates growth in ASV in CY2019, is driven primarily by increasing consumer demand.
