Premium smartphone demand in smaller cities up 40% in Jan-July: Flipkart

Premium smartphone demand in smaller cities up 40% in Jan-July: Flipkart

Demand for 5G-enabled premium smartphones in India’s smaller cities increased 40 per cent from January to July this year, according to Flipkart.

Tier-two cities such as Guntur, Hisar, Moradabad, and Shahjahanpur showed a strong preference for premium smartphones, according to insights from the e-commerce firm. Overall demand for such phones increased 25 per cent in the same period.

Flipkart recorded a growth of more than 60 per cent in new smartphone launches by premium brands like Apple, Samsung, Google Pixel, OPPO and Nothing, coinciding with telecom companies preparing to roll out 5G service and the festival season.

“As one of the fastest growing markets for smartphones in the world, we are witnessing increasing traction for premium smartphones across the country with tier 2 and beyond cities taking a lead in the demand,” said Kunal Gupta, Senior Director, Mobiles at Flipkart.

“This is an indication of the evolution of the smartphone market where owning premium smartphones have gone beyond the aspirational need for customers across geographies and have become an important part of their daily lives,” added Gupta.

According to research firm Counterpoint, India’s smartphone user base crossed the 600 million mark during April-June quarter with the share of 5G smartphones reaching 29 per cent of overall shipments in Q2 2022, which is the highest it has ever been.

Product exchange options for premium smartphones grew by over 50 per cent from January to July 2022 compared to the same period last year, indicating a strong preference for the purchase of premium smartphones through exchange deals, said Flipkart.

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5G services may come with a premium: Vodafone Idea CEO Ravinder Takkar

5G services may come with a premium: Vodafone Idea CEO Ravinder Takkar

Mobile consumers may have to pay a premium for 5G services but could get higher-data packs, Vodafone Idea (Vi) Managing Director and Chief Executive Officer Ravinder Takkar indicated on Thursday.

“A fair amount has been spent on spectrum. We believe the 5G services should be hopefully priced at a premium to 4G services,” Takkar said in response to an analyst query in the post-results conference call.

However, customers could get a higher data bundle along with pricier plans.

Takkar said there was an opportunity to increase mobile tariffs by December-end with the market fully absorbing the 20 per cent hike carried out last November.

“We are impatient and we want to increase prices. Anytime we increase prices it takes several months by the time price increase settles in. We have reached that point,” he stated.

Vi, which posted a net loss of Rs 7,296 crore in first quarter FY23, acquired 6,228 MHz in five bands in the recently concluded auction. Its purchase, worth Rs 18,799 crore, is the least among the three mobile service providers.

Takkar defended the company’s spectrum purchase strategy and added that not acquiring spectrum in 700 MHz would not affect its plans. He said the company had purchased adequate spectrum and would cater to capacity requirements for several years.

Vi purchased spectrum in the 3300 MHz band in 17 of its priority circles and in the 26 GHz band in 16 circles, enabling last-mile connectivity. Additionally, it bought 4G spectrum in three circles.

“We don’t see any issue or challenge with providing enough capacity for several years. I don’t see that 700 MHz spectrum provides any additional capacity from a 5G perspective or provides any competitive advantage,” he stated.

Chief Financial Officer Akshaya Moondra said the company was in advanced discussions with banks for fresh funding for investment.

“If we look at our external debt and earning before interest, tax, depreciation, and amortisation, we are in a fairly comfortable position. There is a long moratorium for serving government debt. Banks understand this. We should be able to conclude discussions in the near future.”

Betting on a new deal

  • Vi CEO defends 5G spectrum purchase, says acquisition adequate for several years
  • Customers could get a higher data bundle, along with the pricier plans
  • Tariff hike of last November absorbed; Vi looking for opportunity to hike rates again
  • In advanced discussions with banks to raise funds for investments

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Vodafone Idea to target premium customer base for its 5G services

Vodafone Idea to target premium customer base for its 5G services

Tough future call: What happens if VIL isn't out of the woods in 4 years?

With a customer base of 259 million as of June this year, the third-largest telecom operator is waiting for the government to pick up a 33.5 per cent stake in the company in lieu of ending dues offered to it as telecom relief package.



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Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
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