In a notable shift, Indian consumers are increasingly veering towards premium smartphones, catapulting the country into the spotlight as one of the fastest-growing markets in the premium segment, typically encompassing devices priced above Rs 50,000. The past 12 to 18 months have witnessed a significant change in buying patterns, with brands like Xiaomi, iQOO, and Samsung adapting to the evolving preferences of Indian consumers.
Traditionally, Apple and Samsung dominated the premium smartphone market in India. However, recent trends indicate a diversification, with brands such as Vivo, Xiaomi, and Google entering the fray, providing consumers with a broader array of options. The momentum is anticipated to continue evolving over the next 12 months, fueled by the advent of 5G smartphones that elevate the perceived value of premium devices.
The shift in dynamics suggests that consumers are willing to invest substantial amounts in the latest flagship models, challenging the notion of budget-centric smartphone purchases. The increasing availability of 5G-enabled phones has played a pivotal role in reshaping consumer expectations, offering higher quality devices in the Rs 5,000 to Rs 10,000 price range, which previously might have cost around Rs 15,000.
Brands are banking on the growing accessibility of 5G phones to eventually penetrate the budget market. However, current trends demonstrate that consumers are not inclined to wait and are embracing the allure of premium smartphones, even those priced above Rs 70,000. Attractive financing schemes provided by manufacturers further sweeten the deal, allowing consumers to opt for small installments rather than committing to a one-time expenditure.
The phenomenon mirrors a trend seen in India’s automotive industry, where SUVs gain popularity, overshadowing the once-dominant affordable hatchback segment. Consumers are now willing to pay extra for enhanced features and safety.
Looking ahead, India joins regions like the Middle East, China, and Latin America in driving the growth of the premium smartphone segment in the coming quarters. The landscape of smartphone preferences in India is evolving, ushering in a new era where top-end devices take precedence over budget considerations.
