Top smartphone makers like Samsung,Micromax expect bountiful rains to boost their sales
With the advent of monsoon, various prominent phone makers like Samsung, Micromax , Intex and Lava expect their sales to boost up. Micromax co-founder Rajesh Agarwal highlighted that the analysts have pegged an upto 15% growth over the next few months to September in the lower priced segment.
Mobile phones have become a vital part of our everyday lives and the buyers spend a significant amount in making phone purchases. As per the analysts, the amount spent by the rural consumers – who form the bulk of the market is likely to stir up due to bountiful rains. It will further aid in attracting new buyers while propelling existing users to move to higher priced devices, including smartphones.
Monsoons have covered a large part of the country and will end up covering rest of India well before the normal date of mid-July, as per India’s meteorological department predictions.
On the back of an expected good monsoon, mobile phones priced under Rs 3,500 are expected to grow by 12-15% over the next two quarters to September end, with most of the growth being back ended with demand coming from rural areas, said Hong Kong-based market tracker Counterpoint Research.
That should be good news for handset makers who have had a tough time so far this year. Smartphone sales, that had been doubling on-year for the last couple of years, grew only 5% in the January-March quarter from the year before, and dipped sequentially, as per International Data Corporation (IDC) as fewer feature phone users upgraded to smartphones and existing smartphone users chose to upgrade to smartphones in the lower price ranges, leading to stagnant sales and average sale prices.
“A good monsoon season means good disposable income for people living in rural areas, which can potentially lead to increased spending on higher priced mobile phones,” said Gartner India’s research director Vishal Tripathi.
Micromax Promoter Rajesh Agarwal agreed with the views saying it will help India’s largest home bred handset maker which has handsets spread across price ranges, starting from Rs 1,000. Nearly half its sales come from rural India.
Analysts add that ahead of crucial festive campaign, brands would also try to get rid of any accumulated inventory using certain offers focusing during the monsoon period.
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