New rules for e-commerce portals will not hurt smartphones' growth in 2019

Business Standard: Snazzier phones with premium price tags are set to vie for Indian customers' wallets in 2019, but it would be entry-level and affordable smartphones driving sales volume in the world's second largest smartphone market.

However, exclusive launches and deep discounts on e-commerce platforms like Flipkart and Amazon could become a thing of the past as new rules for online marketplaces with new rules coming into effect in February.

According to experts, 2018 was a vibrant year for smartphone companies in India as shipments grew by an estimated 11 per cent to about 150 million units. And the growth streak is expected to get a bit better at 12 per cent in 2019.

The stellar growth saw India uprooting the US as the the world's second largest mobile phone market by volume -- ranking behind China but handset prices have been skewed towards lower-end of the market.

"This is likely to change fast. We expect that mid-range smartphones, those with wholesale prices in the range of $200-$400, will grow 20 per cent year-on-year in 2018 and by almost four times during the next five years to make it one of the most important smartphone segments," Counterpoint Research Associate Director Tarun Pathak told PTI.

He said the sales volume sweet spot is moving from sub-$150 segment towards mid-tier as many features and capabilities common among flagship models, progressively diffuse through to these lower price bands.

Also, with features like full-screen displays, dual-cameras, biometric security and support for artificial intelligence being made available in more mid-range devices, customers don't seem to mind paying more for the latest technologies. BS