Of course, it’s not easy to sell any smartphone below 3000 rupees with an IP67 rating but even that wouldn’t be enough to save some of the Rs. 15000 smartphones from the shelves of retail stores.
As the shopping fever intensifies, the major retailers have dropped as many as 30 percent of the smartphones that sell at less than 3000 rupees. With a total sales of 6 million units in July, the smartphone industry witnessed a fall in sales of over 6 percent, a survey by Counterpoint Research has revealed.
It said that over 8 out of 10 smartphones sold in July were priced above 3000 rupees. It added that 8 out of 10 smartphones sold at less than 3000 rupees had an IP67 rating which would have ensured that the smartphones stayed safe when exposed to water. It said that smartphones costing between 3000 and 5000 rupees account for almost 50 percent of the total sales.
Key findings of the survey –
If you are looking for a device costing under Rs. 4,000 and at least has an IP67 rating, then the choice is wide.
The smartphone industry has seen the biggest reduction in smartphones costing under 2000 rupees, whereas the smartphone selling at less than 3,000 rupees are mostly smartphones.
Smartphones selling at less than 5000 rupees had an over 30 percent drop in sales in July, according to the survey.
As far as smartphones that sell for less than 3,000 rupees are concerned, only 2 smartphones have an IP67 rating with a rating of 5 on a scale of 1-10.
Smartphones costing less than 4,000 rupees now account for almost 50 percent of the total sales with the highest decline recorded in the smartphone selling for less than 5000 rupees.
Further analysis –
Interestingly, there is no such prediction on the sales of smartphones that go beyond 7500 rupees.
It is clearly visible that smartphones under 4000 rupees have taken a significant hit in sales, while there is hardly any decline in the sale of smartphones costing over 5,000 rupees.
The strong demand for low priced smartphones have forced a major decline in sales of smartphones priced at 5,000 to 7,500 rupees, and that is mainly due to the low availability of high-end smartphones under such cost levels, the survey concluded.
Rivals of the smartphone industry have taken a hit
More interestingly, some of the competitors of the smartphone industry such as Lenovo, Huawei and others have also witnessed an over 30 percent decline in the sales of smartphones sold at less than 3000 rupees.
There are two reasons for this decline, according to the survey.
In some cases, the smartphone companies have launched smartphones costing just 2000 rupees with an IP67 rating. In other cases, the prices of smartphones are under control as these companies have no plans to further increase the retail prices due to the weak performance of the smartphone industry.
One big reason for the decline in sales in the smartphone industry, according to the survey, is due to the delay in rolling out Android Nougat. It is more likely to roll out on a smartphone with a low price tag as the companies are not eager to increase the pricing for such smartphones as they believe that the discounts would only boost sales, rather that the overall sales would be higher than ever.
Data on performance of smartphone companies –
Among the major smartphone companies, there is a big decline in the sales of smartphones priced under 3000 rupees. Smartphone makers such as Xiaomi, Oppo, Vivo, Gionee, Samsung, Sony and others have seen a decline of over 30 percent in sales of smartphones costing less than 3000 rupees in July.
But there is no major decline in the sales of smartphones costing above 3000 rupees, especially in China and India.
The most successful smartphone companies have the highest sales in China. For example, Xiaomi has been able to double its smartphone sales since last year.
Of course, Xiaomi sells more smartphones under 3000 rupees in India than in China.
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