The study by Counterpoint Research predicts that cumulative 5G smartphone shipments will surpass the 100 million mark in the second quarter of 2023 and surpass 4G smartphone shipments by the end of 2023
A new study has suggested that India's smartphone shipments are expected to decline in 2022 due to a range of macroeconomic factors that are affecting consumer demand in the entry and budget segments. However, 5G technology is expected to drive demand for smartphones in 2023. In fact, India's 5G smartphone shipments are estimated to grow 81% year-over-year in 2022, due to the expanding presence of 5G connectivity in lower price bands and the rollout of 5G networks in the second half of the year.
The study by Counterpoint Research predicts that cumulative 5G smartphone shipments will surpass the 100 million mark in the second quarter of 2023 and surpass 4G smartphone shipments by the end of 2023. In addition, a recent consumer study by Counterpoint found that 5G is the third most important factor for future smartphone purchases.
According to the study, the share of 5G smartphones in lower price bands is gradually increasing, from 4% in 2021 to 14% in 2022 and is expected to reach 30% in 2023. The cost of an entry-level 5G smartphone dropped below INR 10,000 (approximately $122) in 2022 with the launch of the Lava Blaze 5G. Cheaper 5G chipsets from Qualcomm and MediaTek have allowed OEMs to launch more 5G devices in the lower price segment, while the rollout of 5G services has also driven demand for these devices.
However, the growth of 5G in the budget segment has been limited due to component supply shortages, inflation, geopolitical conflicts, and other macroeconomic issues that have delayed 5G device launches. To compensate, some OEMs have dropped or downgraded other key features such as display or fast charging in order to reduce the impact of increasing component costs, which has affected consumer demand for 5G in this price tier. The limited availability of 5G networks has also impacted demand.
The study expects these constraints to ease by the end of 2023, leading to the mass adoption of 5G. The availability of networks in major areas is also expected to facilitate 5G smartphone growth in 2023, which is estimated to be 62% year-over-year.
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