As 5G takes off, sale of 4G devices to become challenging

The survey highlighted 34 new 5G launches throughout the quarter, representing a 14% YoY increase in 5G smartphone shipments.

The introduction of 5G technology does have an impact on the market for 4G handsets, but the extent of this impact may vary depending on several factors.

With the rollout of 5G networks, there is an increased focus on promoting and adopting 5G-capable devices. As a result, many consumers are inclined to purchase smartphones that support the latest generation of wireless technology. This shift in consumer preferences towards 5G devices can make it challenging for retailers to sell 4G handsets.

According to market trackers, the market share of 5G smartphones has reached 50%, and distribution and retail channels are struggling to move the remaining inventory of 4G devices, which has been sitting in the channels for more than nine weeks.

In an effort to clear out the inventory before the key holiday season, which begins in August, smartphone manufacturers have begun to permanently reduce the costs of 4G devices that are approaching the end of their useful lives. As a result of falling average selling prices, the market share for 5G cellphones has been continuously increasing, reaching 50% in April.

According to a CyberMedia Research , 5G smartphones retained a 41% market share in Q1 2023 despite a drop in the overall Indian smartphone market. The survey highlighted 34 new 5G launches throughout the quarter, representing a 14% YoY increase in 5G smartphone shipments. With a 23% market share, Samsung led the 5G smartphone market. Apple came in second with a 17% market share.

Market research firm Counterpoint had earlier stated that India's 5G smartphone shipments will exceed that of 4G shipments by the end of 2023, driven by the mass adoption of the high-speed network and the rise in sale of handsets in the lower-price bands.

However, it's important to note that the transition from 4G to 5G is not instantaneous, and 4G technology still remains widely used. There are several reasons why consumers may choose to purchase 4G handsets, including budget considerations, limited 5G network coverage in certain areas, or simply not having a need for the advanced features and speeds provided by 5G.

Additionally, retailers often cater to a diverse range of customers with varying needs and preferences. They may continue to offer a selection of 4G handsets alongside 5G devices to accommodate different segments of the market.

Overall, while the rise of 5G technology may create some challenges for retailers selling 4G handsets, the demand for 4G devices is expected to persist for a certain period, and retailers can adjust their product offerings accordingly to meet the needs of different consumers.