The festive season, Smartphone’s took center stage, with Samsung and Apple emerging as the undisputed champions. Driven by deep discounts, aggressive marketing, and the lure of new models, these tech giants raked in a staggering $3 billion in sales during the first 11 days of the festive season.
Samsung's strategy
Samsung, the Korean company had aggressive offers across all price segments during online sales events i.e. Flipkart's Big Billion Days and Amazon's Great Indian Festival. The company's strategic sponsorships of these events further amplified its visibility and appeal, resulting in a remarkable 17% year-on-year growth in sales volume.
This festive season provided a much-needed boost for Samsung, which had been facing stiff competition from Chinese brands like Xiaomi and Vivo in the entry-to-mid segment and from Apple in the premium segment. By offering attractive deals and a wide range of devices, Samsung successfully captured the attention of consumers.
Apple's ploy
Apple, known for its premium pricing and loyal customer base, also made a strong showing during the festive season sales. The launch of the new iPhone models, coupled with attractive offers on older models of iPhone, fueled a 44% surge in sales volume. The iPhone 15 alone crossed the one million sales mark in just 11 days, solidifying Apple's position as a dominant player in the premium Smartphone segment.
Interestingly, Apple's success wasn't limited to new models. Older iPhones, particularly the iPhone 13, saw significant demand, indicating that consumers are increasingly drawn to Apple's brand and ecosystem, even when considering older models.
The rise of the premiums
A notable trend observed during this festive season was the increasing demand for premium Smartphone’s. For the first time, sales in the ultra-premium category (Rs 70,000 and above) crossed one million units, with Apple leading the charge. This shift towards higher-priced devices reflects a growing desire among consumers for better specifications, advanced features, and enhanced user experiences.
Online vs. Offline
Online channels played a pivotal role in driving Smartphone sales during the festive season. Amazon emerged as the leading platform, capturing over 55% of online sales, followed by Flipkart. The convenience of online shopping, coupled with exclusive deals and discounts, attracted a large number of consumers to these platforms.
While online channels dominated the initial phase of the festive season, offline sales also gained momentum, particularly with the onset of Navratri. However, offline sales were initially lower due to the Shradh period, which is considered inauspicious for making big purchases in some parts of India.
The festive forecast
Analysts predict that Smartphone sales will continue to grow throughout the festive season, with overall volume growth estimated at around 10% year-on-year. However, value growth is expected to be even higher, driven by the premium trend and the increasing affordability of high-end devices through EMI options and exchange programs.
The festive season has once again demonstrated the dynamism of the Indian Smartphone market. With consumers eager to upgrade their devices and embrace the latest technology, the coming weeks are likely to witness even more exciting developments and fierce competition among brands vying for a share of this lucrative market.
