About 50 percent of Indian smartphone users plan to buy a new device within a year as the transition to 5G gathers pace, according to research by Counterpoint Research.
According to analyst ARUSHI CHAWLA, Samsung, Apple and OnePlus are the top brands that consumers are looking for when they next get a new smartphone. 20,000-30,000 Indian rupees (roughly $1755-2631) is their preferred price range for future smartphone purchases. Access to 5G is the third most important factor influencing consumers’ future smartphone purchase decisions.
According to Counterpoint Research’s annual smartphone consumer study in India, around half of Indian smartphone owners plan to buy their next smartphone within a year. In addition, the smartphone ASP (average selling price) in India is expected to rise as consumers say they are more likely to choose a higher-priced model for each subsequent purchase. In addition, Samsung, Apple and OnePlus topped the list as the survey respondents’ top smartphone brands for their next purchase, In terms of features, 5G was the third most important factor they would consider when planning their next purchase. This feature, on the other hand, only ranked 10th in terms of the importance of buying a smartphone at the moment.
The aim of the study was to understand the changing trends and selection preferences of consumers in terms of past smartphone holdings, current use and future purchases.
The most popular price range for smartphones held by respondents in the past, also known as the sweet spot, was INR 10,000-15,000 (approximately RMB 877-1315). In the price range of their current smartphone holdings, the sweet spot shifted to INR 15,000-20,000 (approximately RMB 1315-1755). The sweet spot further shifts to INR 20,000-30,000 (approximately RMB 1755-2631) when it comes to choosing their next smartphone preference.
Smartphones have become an important part of our lives,” says research analyst Arushi Chawla. As a result, smartphone users are trying to upgrade their devices with every purchase. When buying a new device, more than a third of users plan to keep their current device as a replacement/secondary phone. In addition, more than a quarter of respondents plan to use a trade-in option for their next smartphone purchase due to the availability of more trade-in offers. As a result, users are also more receptive to higher-priced smartphones for a better experience and newer features.”
Source: Annual Indian Smartphone Consumer Study, 2022
Brand preference for next smartphone purchase.
Samsung, Apple and OnePlus are the top brands that consumers prefer when it comes to a new smartphone.
Samsung has the strongest brand loyalty, with 51% of users saying that Samsung was their last device and is the device they are currently using. In addition, 43% of existing Samsung users still cite the brand as their first choice when it comes to their next smartphone purchase.
Apple is the second most preferred brand for future purchases (20%), despite being a smaller share of the last and currently used smart device held by consumers in the region.
Source: Annual Indian Smartphone Consumer Study, 2022
Chawla added: “Samsung is a strong draw for smartphone users in India. The brand’s extensive distribution network, and the fact that it launches new models in most price segments every year, have helped Samsung grow and maintain its brand value. As a result, our survey data shows that Samsung maintains the highest position in terms of past and current ownership and future purchase preferences for consumer smartphones. In terms of future purchase preference, Samsung is closely followed by Apple and OnePlus. The top reasons for consumers’ future preference for a brand are brand reputation, advanced features and user interface. Due to these factors and the desire to move to a higher price bracket when purchasing a smartphone, users tend to prefer premium smartphone brands. In addition, as consumers’ budgets for future smartphone purchases gradually rise, the availability of 5G becomes increasingly important. 5G is one of the main factors considered by all mainstream smartphone brands. 5G is also the most important factor for those respondents who ranked Apple as their next preferred smartphone.”
