If you are looking for a smartphone today, it is most likely a 5G device. While 4G networks are still going to be important, users would definitely like to invest in a 5G smartphone rather than a 4G one if they are spending a significant sum of money. 5G rollout isn’t far from here, as the spectrum auction is slated for July 26, 2022.
As per an ET Telecom report, Navkendar Singh, research director at IDC India, said that 4G devices priced upwards of Rs 15,000 wouldn’t be the top choice anymore as the market has shifted to 5G. At the same time, bringing 5G smartphones under Rs 10,000 is not possible right now because of the inflated cost of components and the chipsets. Thus, the bracket of Rs 10,000 – Rs 15,000 is where the brands will try their best to bring more 5G phones.
5G Chips in General Cost 3x of 4G Chips
According to Sravan Kundojjala, director of Strategy Analytics, the cost of 5G chips is 3x of what 4G chipsets cost in general. While this is making the chip vendors Qualcomm and MediaTek rich, it is also making the smartphones expensive for the end-users.
Today, the average selling price of 5G smartphones is Rs 32,000 (Counterpoint Research data). There could be two things – a) users are purchasing more high-end smartphones, or b) there are no good 5G phones in the budget segment. Both can be partly true at the same time.
Smartphone makers can potentially reduce the price of the device by lowering the number of bands supported and toning down the display and the camera to reduce the price of 5G smartphones. But in that case, it would be mostly a bad deal for the users who are spending their hard-earned money on a 4G device. No one wants to compromise on the display and the camera specifications of a smartphone.
