5G phones sales below ₹10,000 have grown over 10x on the platform, Amazon India top executive says
| Photo Credit: Special Arrangement

Significant double-digit growth observed in the smartphone category, driven by increased internet penetration, premiumisation and stabilising inflation. A strong shift towards online purchasing, with approximately 70% of demand originating from Tier 2 and 3, said Zeba Khan, Director, Consumer Electronics, Amazon India while talking to The Hindu.

She was in Delhi to assist iQOO launch their new mid-segment Amazon-exclusive smartphone, iQOO Neo 10R in India. 

Ms. Zeba said that growth is particularly strong in the premium segment (₹30K and above) and the ₹15-20K segment, fuelled by consumer demand for 5G technology and improved features. “5G phones sales, under ₹10K, have grown over 10x on the platform.”

A significant portion of sales is coming from Prime customers on Amazon, 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,” said Ms. Zeba.

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The e-commerce portal said that OnePlus, iQOO, Samsung, Xiaomi, and Realme have been the top performers on Amazon India.

She feels that there is a growing demand for AI-powered features in smartphones, with projected growth in AI segment contribution to 15-20% by 2025. “AI features are currently also being integrated into laptops, mirroring the trend in smartphones.”

Ms. Zeba said that consumers are prioritising features like camera quality, battery performance, and 5G capabilities. And the platform’s AI-powered shopping assistant, Rufus, is helping customers navigate the technical aspects of smartphone selection based on their needs.

Amazon is also sending their representatives to do the phone setup service in 300 cities, offering data transfer and device setup assistance but for a fee. “The phone setup service has received positive customer reviews with a 4.8-star rating,” she added.

Ms. Zeba added that gaming smartphone segment is also experiencing significant growth, mirroring the trend in gaming laptops.