About half of India’s smartphone owners plan to purchase their next smartphone within a year, according to Counterpoint Research’s annual consumer smartphone study in India. Further, India’s smartphone market ASP (average selling price) is expected to rise because consumers tend to prefer a higher price band for every subsequent purchase.

In the recent survey, Samsung, Apple and OnePlus are at the top as the survey respondents’ preferred smartphone brands for the next purchase. A first for Apple. In terms of features, 5G capability is the third most important feature considered when planning the next purchase. The same factor is ranked tenth in terms of importance for current smartphone purchases.

The objective of the study was to understand the changing consumer trends and choices across past holding, current ownership and future preference for smartphones. Based on the respondents’ previous smartphone ownership, the INR 10,000-INR 15,000 price band was the sweet spot. For the current smartphone ownership, the sweet spot shifted up to the INR 15,000-INR 20,000 band. And for the respondents’ future smartphone purchases, the price band shifted further up to INR 20,000-INR 30,000 (US$240 to US$365).

Research Analyst Arushi Chawla: "Smartphones are now an important part of our lives. As a result, smartphone users try to upgrade their devices with every next purchase. When purchasing a new smartphone, more than one-third of the users plan to retain their current device as an alternative/secondary phone. Also, with more exchange offers available, more than one-fourth of the respondents plan to trade in their current smartphone when purchasing the next one. Therefore, users feel comfortable buying a smartphone from a higher price band for a better experience and updated features." This is to Apple's advantage.

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Looking at the brand preference for the next smartphone purchase:

• Samsung, Apple and OnePlus are the respondents’ most preferred brands.
• Samsung users have the strongest brand loyalty with 51% of the users who used Samsung as their previous device also using Samsung currently. Further, 43% of the current Samsung users prefer the brand for their next smartphone purchase.
• Apple, despite having a smaller share in previous and current smartphone purchases, is the second most preferred brand (20%) for future purchases. 5G was noted as the most important factor for respondents preferring Apple as their next smartphone purchase.” Source

This shift to premium smartphones with each upgrade cycle will play into Apple's favor. The survey showed that Apple lept to second place replacing Xiaomi. All the more reason for Apple to comply with the Indian government's demands for iPhones and other brands to begin including India's NavIC (Indian Navigation Constellation) in 2023.

The sweet spot for consumers in India looking to upgrade to iPhones in 2023 will likely be Apple's next-gen iPhone SE that will be modernizing to a design closer to their XR model, according to rumors.