Amazon sees 30% jump in smartphone sales in 2022: Here's what that means
Delhi : The growth in feature phone upgrades to smartphones, the demand for 5G phones, and discounts over the holiday season all contributed to Amazon India's smartphone business expanding 30% year over year in 2022. Amazon continues to see strong sales growth in tier-2 and tier-3 cities, particularly in the Rs 10,000–20,000 price range.
"Tier-2 and tier-3 markets account for three of every four smartphone sales on the platform. Customers began spending a lot more time on their cellphones in 2022, driven primarily by work from home, video conversations, and OTT usage. Based on these variables, we observed a rise in smartphone upgrade propensity, customers' demand for high-performance devices, and a propensity for gaming.
Despite a drop in overall smartphone shipments in 2022, smartphone sales are on the rise. In 2022, Counterpoint Research estimates that smartphone sales will total 160 million units, a 5% year-over-year decline due to macroeconomic issues that would impair consumer demand in the entry-level and low-priced segments. The research company projects that smartphone shipments will expand by 10% to 175 million units in 2023, driven by the shift of feature phones to smartphones, domestic smartphone manufacturing, novel use cases, and the relaxation of supply chain limitations.
In 2022, OnePlus, Samsung, and Xiaomi were the most popular brands. Currently, Xiaomi holds a market share of about 21% in India. Samsung is second with a share of 19%, and Oppo, which also includes OnePlus, is third with a share of 10%. However, a survey by technology research firm Techarc found that OnePlus is the most popular smartphone brand in the nation, followed by Samsung and Xiaomi.
"iQOO is another brand that has gained a lot of attention during the past 12 months. As a result of client demand, Indian firms like Lava are now becoming more aggressive with their price points. The growth in the luxury smartphone categories was double digits, it was not as high as in the sub-Rs 20,000 sector.
Analysts claim that consumers have been considering features like greater camera quality, better performance, longer battery life, and larger screens when they upgrade their smartphones, and starting next year, more of these characteristics will also be found in the entry-level 5G handsets.
Regarding 5G, prices for 5G smartphones had already decreased given that an entry-level 5G phone is presently available on Amazon for Rs 10,000 and that there isn't any sales pressure being felt on the platform as a result of inflation. Additionally, he continued, no-cost EMI alternatives will keep driving sales on its platforms moving forward.
According to Counterpoint Research, India's 5G smartphone shipments will surpass 4G smartphone shipments by the end of 2023 and surpass the 100 million milestone in the quarter between April and June. With the rise of smartphones in lower price ranges, it is predicted that shipments of 5G smartphones will have increased by 80% year over year by 2022.
During the Great Indian Festival, Amazon observed a significant increase in sales of mid-range smartphones, with almost 80% of those purchases occurring in the sub-Rs 15,000 price category. More than 1 million new customers used the company's platform to purchase smartphones for the first time. Customers favoured Xiaomi, Samsung (M Series), realme, iQOO, OnePlus, and iPhones the most throughout the sales.