The cumulative 5G smartphone shipments to go beyond the 100-mn mark in Q2 2023; to exceed that of 4G by year-end
As per the latest report, India’s 5G smartphone shipments are expected to grow 81% YoY in 2022 driven by their increasing presence in lower price bands (<Rs 20,000) and the 5G network rollout. Notably, 5G share in lower price bands (<Rs 20,000) is progressing gently, from 4% in 2021 to 14% in 2022. The report suggested that the growth has been limited due to component supply shortages, inflation, geopolitical conflicts and other macroeconomic issues. This has delayed 5G device launches in the budget segment.
Counterpoint’s India Market Outlook projected India’s smartphone shipments to witness a yearly decline in 2022 due to macroeconomic factors affecting consumer demand in the entry and budget segments. However, it added, 5G has been a driving force and will continue to push smartphone demand in 2023 also.
According to this report, cumulative 5G smartphone shipments will exceed the 100-million mark in Q2 2023 and go above the 4G smartphone shipments by year-end.
The source stated that though OEMs have brought more 5G devices for lower price bands (<Rs 20,000), they have done so on the cost of other key features like fast charging or display. Consequently, the consumer demand for 5G within this price tier has been low. Moreover, the limited availability of 5G networks has also affected the demand.
It must be noted that the 5G share in lower price bands (<Rs 20,000) is gradually going upwards, from 4% in 2021 to 14% in 2022. Expectedly, it must reach 30% in 2023. The report said that the cost of an entry-level 5G smartphone dropped below Rs 10,000 in 2022 with the launch of the Lava Blaze 5G. “The availability of cheaper 5G chipsets from Qualcomm and MediaTek has enabled OEMs to launch more 5G devices in the lower price segment, while the commercial rollout of 5G services has also driven demand for the same,” noted Counterpoint.
The report expects the abovesaid constraints to ease by the end of 2023, leading to the mass adoption of 5G. It said that better availability of networks in major areas will also contribute to 5G smartphone growth in 2023, which is estimated to be 62% YoY.
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry.
