Amazon witnesses 30% increase in smartphone business

Amazon India has witnessed a 30% increase in the smartphone business which is almost as much as double from the year 2020. The growth in units in 2021 was led by mid-premium smartphones in the Rs 20,000-30,000 and Rs 30,000-Rs 50,000 segment.

The smartphone sales in this price segment witnessed more than 50% year-on-year growth due to the increased requirement for high-performance smartphones post covid. Customers from tier 2 and tier 3 cities have contributed to 70% of smartphone purchases which is about three times more than tier 1 cities.

Customers of approximately 50-60 million smartphones in the price band of Rs 5,000-10,000 bought in the past 3-4 years now want a better experience such as OTT content streaming, games and more which makes them go for a better performing device and hence the growth in the sales of premium devices over Rs 20,000.

Nishant Sardana, the category leader at smartphones and accessories at Amazon, stated that over the last year, there has been a pattern emerging where customers gravitate towards smartphones which are ideal for multitasking and can manage work, entertainment, and day-to-day use cases as well.

A report from Counterpoint says that Covid-19 hit-offline retail stores, special offers, a wide variety of choices and pricing are the major reasons. The report also stated that the reverse migration of knowledge workers from big cities to smaller cities played a key role in popularising online channels.