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The Indian smartphone market is overwhelmingly dominated by lower-end models priced under $200, accounting for 65% of total phone sales in the country. With many Indian consumers still highly price-sensitive, brands have focused their efforts on affordable devices to drive volume growth.
Xiaomi and Realme are the leading players in the sub-$200 segment in India. Features such as dual cameras, fast processors and large displays which once only characterized premium phones have now become commonplace even in budget models. This has made inexpensive smartphones an extremely attractive value proposition for Indian buyers.
While the under $200 models generate momentum for smartphone adoption, profit margins tend to be lower.
We expect brands seeking profitability may shift focus towards the $400 plus premium segment going forward.
However, India's wealth distribution remains highly uneven - for now at least, the sheer demand volumes from budget conscious buyers should keep the sub-$200 segment firmly in focus for smartphone players chasing market share in India. Pushing out affordable devices that don't compromise too much on specs remains imperative.
