COVID-19 epidemic has significantly affected users' pockets. Smartphone companies are also understanding this. This is the reason that nowadays companies have become very conscious about the pricing of new phones. Due to this, competition in the low-cost smartphone segment has also increased significantly. In the recent times, many such phones have been launched, which come at a price of less than 10 thousand rupees. Companies have got an opportunity in the Corona era to launch light specifications and low-cost devices. This will fulfill the user needs on one hand, on the other hand companies will also get an opportunity to increase their stake in the entry level segment.
Trying to strengthen grip in the cheap segment
In many years, Samsung has launched the first smartphone priced around 5 thousand rupees in the market. At the same time, Realme is also looking to increase the number of its cheap smartphones. These companies are trying to strengthen their hold in the segment of less than Rs 10,000 like Xiaomi and Nokia.
E-learning increased demand for cheap smartphones
Tarun Pathak of Counterpoint said, “Most companies are adopting backward integration in pricing nowadays because the possibilities of replacement in category of less than Rs 10,000 are now high.” Tarun further said that the increasing need of users' e-learning gave brands an opportunity to sell devices with low price and light specifications.
Market share has reduced considerably in a few years
In the last few years, smartphones in the entry level segment have come down sharply. The reason for this is the decreasing demand and higher distribution costs. According to Counterpoint Research, in 2017, the market share of the entry-level segment, ie segment less than Rs 5,000, was 12 percent, which was reduced to 4 percent in the year 2019. At the same time, the market share of the segment of 5 to 10 thousand rupees decreased from 45 percent to 42 percent.
Users are buying new phones only when needed
The cheap smartphone segment has received a new boost due to the Kovid-19, as users now want to spend less money while purchasing a phone and they are taking a new phone only when they really need it. Due to this, domestic smartphone brands such as Micromax and Lava have got a great opportunity to re-enter the market. Apart from this, LG of Korea has also started trying to reinforce its hold in the world's second largest smartphone market.
Oppo Reno4 Pro price leaked, phone will launch tomorrow
Difficult for small Indian brands no less
Analysts believe that the small Indian brand may again be in trouble during this period as already Chinese brands have reduced their market share to 1 percent in the last 5 years. Canalis research analyst Advait Mardikar said, “So far LG, Micromax, Gionee, iTel, Lava had some hope for cheap smartphones, but they may find it difficult to compete with cheaper brands such as Samsung's superior brands in technology.” is.' On the other hand, companies that make cheap and mid-range smartphones such as Vivo, Oppo and Xiaomi have entered a segment above Rs 40,000, showing a different trend in the last few months.