Two F’s of 5G and Foldable Smartphones Will Excite Entire Value Chain: Techarc

By Tanya Aneja

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  • The report highlighted that a total of 213 million smartphones will be sold in 2020
  • The luxe (above Rs 50,000) category of smartphones will see the 2nd highest growth at 26 per cent
  • South will continue to sell more (32 per cent) Smartphones
  • The estimates for 5G Smartphone sales are 1.5 million units in 2020
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According to a report by techARC, the smartphones will register a growth of 13.8 per cent in sales compared to 2019, while feature phone and smart feature phone sales are estimated to decline at 13 per cent and 34 per cent respectively.

The report sees total mobile handset sales at 270 million units in 2020, 2 per cent dip than the sales figures for 2019. Smartphones will contribute 61 per cent of the new handset sales with featurephone and smart featurephone contributions at 30 per cent and 9 per cent respectively.

“It will be a usual year for the mobile industry with the sales driven by replacement and upgrade opportunities. 2 F’s of Five (5)G and Foldable Smartphones will excite the entire value chain including the end-users in 2020,” Faisal Kawoosa, founder & chief analyst, techARC.

Kawoosa added, “2020 is going to be one of a kind year where smartphone brands will have to maneuver the current potential with the future opportunities and balancing between the two will be key to their success.”

Overall smartphone sales

The report highlighted that a total of 213 million smartphones will be sold in 2020, out of which 23 per cent (48 million) is estimated to be pre-owned smartphones. The overall smartphone sales will grow at 13.3 per cent with new smartphone sales increasing at 13.8 per cent and pre-owned smartphones sales growing at 11.6 per cent.

It stated that the premium (Rs 25,001 – 50,000) smartphone category will grow maximum in sales at 30 per cent comparing the sales of 2019. The luxe (above Rs 50,000) category of smartphones will see the 2nd highest growth at 26 per cent, mid (Rs 10,001 – Rs 25,000) at 23 per cent in 2020 and basic (Rs 5,001 – Rs 10,000) at 7 per cent with 80 million units. The entry (up to Rs 5,000) level of Smartphones will continue to decline. The segment is likely to decline at 11 per cent in sales compared with 2019.

South will continue to sell more

South will continue to sell more (32 per cent) Smartphones. However, Eastern states will see the maximum growth of 28 per cent in sales of Smartphones. This will be followed by North at 20 per cent, West at 10 per cent and South at 7 per cent growth in volume sales.

Urban India will sell 63 per cent of the Smartphones with 12 per cent rise in sales. Rural will sell the remaining smartphones with 17 per cent growth in the region. Online sales channels will see a nominal 2 per cent dip in contribution with 40 per cent of the smartphones being sold through this channel.

Offline channel will grow at 18 per cent

The report mentioned that the offline channel will grow at 18 per cent propelled by heavy investments by brands in the offline channel to cater to rising opportunities beyond metros. The estimates for 5G Smartphone sales are 1.5 million units in 2020. All major OEMs will launch at least one 5G Smartphone handset.

It emphasised that foldable Smartphones will be the 2nd most exciting thing to happen in 2020. There are 8-10 expected Foldable Smartphones to be launched in 2020.

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