India has achieved a significant milestone in the mobile industry by selling over 100 million 5G smartphones, surpassing monthly shipments of 4G smartphones for the first time. This achievement, reported by Counterpoint Research, reflects 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 slow, leaving many 5G smartphone users still reliant on 4G connections.
One of the key drivers behind the surge in 5G smartphone sales is the increasing affordability of these devices. Smartphone manufacturers have introduced a range of affordable 5G smartphones in the price range of Rs10,000 to Rs15,000, attracting a broader range of consumers. Shilpi Jain, a senior research analyst at Counterpoint Research, highlights that the availability of more affordable options has significantly contributed to the rapid adoption of 5G smartphones in India.
It is interesting to note that the shift towards 5G smartphones is also evident in the overall market. In 2022, only 14% of smartphones sold under Rs20,000 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-Rs20,000 price segment, which caters to budget-conscious buyers, 5G smartphones have gained significant traction. This price range now accounts for approximately 41% of total 5G sales in India, demonstrating the growing popularity of more affordable 5G options.
Furthermore, the availability of affordable 5G smartphones has influenced the average selling price of these devices. Reports indicate that the overall average selling price of 5G smartphones has dropped by 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. Several factors contribute to this discrepancy between smartphone sales and subscription growth, including network infrastructure, coverage limitations, and the need for more widespread awareness and education about the benefits of 5G.
As India continues to witness the growth of 5G smartphone sales, efforts to enhance network infrastructure, expand coverage, and raise awareness about 5G technology are crucial to driving the adoption of 5G subscriptions. With the increasing affordability of 5G smartphones and the potential for transformative connectivity, India is poised to unlock the full potential of 5G and usher in a new era of digital innovation and productivity.
