Sales of 5G smartphones priced under ₹10,000 have experienced a tenfold increase on the Amazon India platform, according to Zeba Khan, Director of Consumer Electronics at Amazon India. The robust growth in the smartphone category is attributed to several factors, including increased internet penetration, a trend toward premium devices, and stabilizing inflation.
A significant shift towards online purchasing is evident, with approximately 70% of demand originating from Tier 2 and 3 cities, Khan stated in Delhi during the launch of iQOO’s new mid-segment smartphone, the iQOO Neo 10R, which will be exclusively available on Amazon. Growth is particularly strong in the premium segment (₹30,000 and above) and the ₹15,000-₹20,000 segment, fueled by consumer interest in 5G technology and enhanced features. “5G phones sales, under ₹10K, have grown over 10x on the platform,” Khan noted.
A substantial portion of sales is attributed to Prime customers, indicating diverse preferences across different customer segments. “We have a very large prime customer base, like literally half our business almost comes from Prime customers,” Khan explained.
The e-commerce portal highlighted OnePlus, iQOO, Samsung, Xiaomi, and Realme as top performers on Amazon India. Khan also sees a growing demand for AI-powered features in smartphones, projecting that AI segment contribution will reach 15-20% by 2025. “AI features are currently also being integrated into laptops, mirroring the trend in smartphones,” she added.
Khan stated that consumers are prioritizing features such as camera quality, battery performance, and 5G capabilities. Amazon’s AI-powered shopping assistant, Rufus, is helping customers navigate the technical aspects of smartphone selection based on their individual needs.
Furthermore, Amazon offers a phone setup service in 300 cities, offering assistance with data transfer and device setup, though this service is fee-based. “The phone setup service has received positive customer reviews with a 4.8-star rating,” Khan mentioned. The gaming smartphone segment is also experiencing significant growth, reflecting the trend in gaming laptops.
