According to the new report by Gartner, users are willing to spend more to get a smartphone with better features than simply rushing for lowest price smartphones.
"As opposed to earlier falling mobile phone average selling price (ASP) trends led by the rush to a low-cost mobile phone, we have noted a change in consumer spending. Our recently concluded consumer survey showed, users are willing to spend more to get a smartphone with better features than simply rushing for lowest price smartphones," report said.
"The growing ASP trend will be maintained in the coming years with the increasing middle-class population and rising per capita income leading to more disposable income to be spent on electronic goods," Anshul Gupta research director at Gartner said.
The report also said that ever rising competition from Chinese manufacturers has not only troubled top local brands such as Micromax, Intex, Lava and Karbonn mobile but also resulted in a decrease in smartphone market share for Samsung in India.
Leading global vendors, Samsung and Apple, have made exclusive plans to grow their shares in the market. Major Chinese manufacturers, such as Gionee, Huawei, Oppo, BBK (Vivo), Xiaomi, Lenovo etc., have committed big investments to exploit the growth opportunity, it further said.
It added that the rise of digital currency is bringing a new use case for smartphones, which, in turn, is set to trigger higher demands for smartphones and this opens the opportunity for service providers to launch mobile wallet solution or even vendors to launch their exclusive mobile payment solutions like Android Pay or Apple Pay to build an ecosystem.
The further added that smartphones in India are expected to account for 62 percent of all mobile phones sales in India in 2018.
"With the slowdown in sales in major markets, including the U.S., China, and mature Western Europe, India represents the largest opportunity because it is the second-largest mobile phone market after China," said Anshul.