Mobile phones witness highest-ever selling prices during Diwali
The average selling price (ASP) for smartphones in online sales was Rs 19,000 this year, up from Rs 17,000 last year and Rs 13,000 in 2019.
The average selling price (ASP) for mobile phones has reached an all-time high this Diwali season, in both online and offline stores. With the shortage of devices in the market due to supply chain concerns, retailers have observed a 12-15% increase in ASPs, forcing buyers to grab the first phone available, even if it is at a higher price.
According to Counterpoint Research, the average selling price (ASP) for smartphones in online sales was Rs 19,000 this year, up from Rs 17,000 last year and Rs 13,000 in 2019. “This is the highest ASP for handsets ever recorded, both online and offline,” said partner Neil Shah.
During the first week of October, India’s festive shopping season commenced. Online retailers like Amazon and Flipkart kickstarted their flagship festive sales programme that is ‘Great India Festival’ and ‘Big Billion Day’ sales, respectively. During the Diwali weekend, the sales period peaked. With work from home and online education, the need for a good smartphone has pushed customers to buy even more expensive devices.
OLINEO Nexus India’s, managing director Vibhooti Prasad said that the customers have queued up during Diwali for phones costing Rs 15,000 after applying discounts and exchange offers, which last year stood at Rs 9,000. OLINEO Nexus India has 114 retail stores in Mumbai, Nashik and Bengaluru.
“Below the price range of Rs 10,000, there aren’t many options available in brands, which is driving up ASPs. Consumers have also realised their increasing reliance on smartphones, as well as the need for high-quality hardware and specifications, so they may as well spend a little more “Navkender Singh, research director at IDC India, said.
Other factors like, supply chain concerns were a major role in the price hike. Due to a lack of shipping containers, companies were forced to airlift phones. Furthermore, a year of chipset shortages and import restrictions at Chinese airports and seaports have hampered consumer electronics supply.
Download Money9 App for the latest updates on Personal Finance.
