The Indian mobile industry has surpassed a significant milestone by selling more than 100 million 5G smartphones, outpacing monthly 4G smartphone shipments for the first time. This remarkable achievement, reported by Counterpoint Research, highlights the growing demand for advanced connectivity in the country. However, despite the surge in 5G handset sales, the adoption of 5G subscriptions has been relatively sluggish, leaving many 5G smartphone users still reliant on 4G connections.
One of the key driving factors behind the surge in 5G smartphone sales has been the increasing affordability of these devices. Smartphone manufacturers have launched a wave of affordable 5G smartphones in the Rs10,000 - Rs 15,000 price range, attracting a wider range of consumers. Shilpi Jain, a senior research analyst at Counterpoint Research, emphasised that the introduction of more affordable options has significantly contributed to the rapid adoption of 5G smartphones in India.
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Interestingly, the shift towards 5G smartphones has been evident in the overall market as well. In 2022, only 14% of smartphones sold under Rs 20,000 were 5G-enabled. However, as of May 2023, this percentage has surged to an impressive 26%. This indicates that consumers are increasingly embracing the benefits and capabilities of 5G technology.
Within the sub-Rs 20,000 price segment, which caters to budget-conscious buyers, 5G smartphones have gained substantial traction. This price range now accounts for approximately 41% of total 5G sales in India, showcasing the growing popularity of more affordable 5G options.
Moreover, the availability of affordable 5G smartphones has significantly influenced the average selling price of these devices. According to reports, the overall average selling price of 5G smartphones has dropped by a noteworthy 13.3% to $391 during the April-May period. This price reduction has further accelerated the adoption of 5G smartphones across different consumer segments.
Despite telecom giants Reliance Jio and Bharti Airtel offering free 5G subscriptions, the uptake of these services has been relatively slow. This discrepancy between smartphone sales and subscription growth can be attributed to various factors, including network infrastructure, coverage limitations, and the need for more widespread awareness and education about the benefits of 5G.
