Particularly in Tier 2 areas across the nation, 5G smartphones appear to be all the rage. According to reports, the popularity of 5G cellphones helped US-based Amazon increase its sales in the first quarter of the year.
According to a report in the Economic Times (ET), Amazon India’s smartphone sales experienced double-digit increase in the first quarter of the year due to strong demand from Tier 2 markets for 5G devices. The first three months of the year (Q1-2023), when various market research surveys estimated that total industry shipments had declined by around 20% year over year, are when the double-digit rise allegedly occurred. According to a report in the Economic Times (ET), Amazon India’s smartphone sales experienced double-digit increase in the first quarter of the year due to strong demand from Tier 2 markets for 5G devices. The first three months of the year (Q1-2023), when various market research surveys estimated that total industry shipments had declined by around 20% year over year, are when the double-digit rise allegedly occurred.
“Three out of four smartphones sold were in tier 2 markets, with over 50% being 5G devices. Customers in the rural areas are increasingly demanding future-ready features while upgrading from their existing smartphones,” Ranjit Babu, director, wireless and home entertainment, Amazon India, told ET. “We observed a surge in tier 2 markets because many of them are also first-time online shoppers,” Babu added.
Babu is in charge of Amazon’s smartphone division.
The company is currently considering additional strategies to reach this population in order to power its next stage of growth, the top executive claimed. The replacement cycles in tier 2 markets remain high, he continued, in part due to the devices’ greater endurance.
Despite its strong expansion, Amazon’s ability to accept shipments from brands throughout the quarter lagged behind that of its arch rival Flipkart. While online channels accounted for 44% of shipments in Q1, the majority of them went to Walmart-owned Flipkart, while the Indian division of Amazon had a 40% share, according to Counterpoint Research.
