The demand for high-end smartphones in tier-2 and three cities is reportedly 50 percent above it had been in 2019 thanks to increasing brand awareness, more payment options and pent-up demand.
Mobile retailers in these smaller cities and towns are seeing record demand for phones priced above Rs 40,000 just like the newly launched Samsung flip phone and Apple’s iPhone 13 series, an Economic Times report has said.
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“I get consumers from Valsad, Mehsana, Vapi, Anand and Kalol posing for Apple iPhone 13, Samsung’s flip phone. Inquiries have also are available for Vivo’s upcoming launches within the higher ranges,” said Nikunj P Patel, who owns 45 stores under his chain Fonebook in Gujarat.
According to analytics firm PredictiVu, the demand for premium phones between metros and non-metros is 80:20 and therefore the ratio are going to be narrowed right down to 65:35 by the year-end.
The gap would have closed even further if the industry had not faced the chip shortage that derailed the availability of smartphones, the report said.
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Growth has been seen in smaller cities in Haryana, Punjab, Rajasthan, Karnataka, Tamil Nadu and Kerala also , the report said.
Navkendar Singh, director of research at IDC, said that there was an unprecedented 50 percent increase in demand (in smaller towns and cities) for the premium and mid-premium segments compared to 2019.
“The launches are fewer now and there’s income , which successively , is pushing the demand,” Singh was quoted as saying within the report.