industry

Amazon India's smartphone business up 30 per cent in 2021


New Delhi: Amazon India‘s smartphone business grew 30% in 2021, nearly double that of 2020, driven by customers in small towns who are choosing premium smartphones above ₹20,000, a top company official said.

Signalling changing consumer trends post pandemic, Nishant Sardana, category leader, smartphones and accessories at the ecommerce major, told ET that the growth in units in 2021 was led by mid-premium smartphones in the ₹20,000-30,000 and ₹30,000-50,000 segment, which saw more than 50% on-year growth, driven by post-Covid requirement for high-performance smartphones.

Untitled-15Agencies

“Over the last year, we have seen customers gravitate towards smartphones which are ideal for multitasking, which can manage work, entertainment, and day-to-day use cases as well,” Sardana said. He added that customers are opting for performance-centric smartphones with a better processor and larger RAM.

“Display-size, refresh rates will continue to be an ongoing battle,” he said. Speaking about the smartphone market’s premiumisation trend, Sardana said the install base of approximately 50-60 million smartphones in the price band of ₹5,000-10,000 bought in the past 3-4 years now want a better experience. “They want more from their smartphones – consuming OTT content, play games, but they realise what I have today is not sufficient, I need to upgrade to a better experience, and that’s where we are seeing the premium above ₹20,000 with 5G support doing very well,” Sardana said.

Small-town customers in tier 2 and tier 3 cities have contributed to 70% of smartphone purchases, which is three times more than tier 1 cities. Three out of four smartphones, sold on Amazon India, are being purchased by customers from tier 2 cities and towns, reflecting the demand from small towns, Sardana said.



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