Business isn't ringing for sub-Rs 10k smartphones as costs rise, 5G knocks

Inflation, higher component costs among reasons for decline of popular segment

Smartphones costing less than Rs 10,000—a segment dominated by Chinese manufacturers—is in dire straits in the Indian market as demand sinks and input costs rise amid low margins.

The segment accounted for 46 per cent of India’s smartphone market in 2021 and fell to 31 per cent in 2022, according to IDC India, a market research firm. It suffered despite the Indian telecom market, which includes smartphones, core wearables and TWS mobile headsets, doing better than global markets in 2022.

IDC expects the segment to drop in demand and shipments in 2023, as device costs are unlikely to fall. “Due