Sales of 5G smartphones in India surpass 100 million, adoption slow

The adoption of these services has remained somewhat gradual, despite telecom behemoths Reliance Jio and Bharti Airtel giving free 5G subscriptions

With the sale of more than 100 million 5G handsets, the Indian mobile sector has for the first time eclipsed monthly 4G smartphone shipments. This outstanding accomplishment, as reported by Counterpoint Research, emphasises the nation's rising need for high-speed internet. Although sales of 5G smartphones have increased, 5G subscription acceptance has lagged, leaving many 5G smartphone users still dependent on 4G connectivity.

The rising affordability of 5G smartphones has been one of the main factors fueling the spike in sales of these devices. A variety of consumers have been drawn in by the wave of 5G handsets that have recently been released by smartphone makers at prices between Rs 10,000 and Rs 15,000. The emergence of more affordable options, according to Shilpi Jain, a senior research analyst at Counterpoint Research, has greatly accelerated the uptake of 5G cellphones in India.

It's interesting to note that the market as a whole has also seen a trend towards 5G cellphones. Only 14% of devices priced under Rs 20,000 in 2022 would support 5G. However, this number has increased to an amazing 26% as of May 2023. This shows that consumers are embracing the advantages and potential of 5G technology more and more.

5G smartphones have made significant progress in the under Rs 20,000 pricing range, which targets users on a tight budget. This price range now makes up about 41% of all 5G sales in India, demonstrating the rising acceptance of more cost-effective 5G solutions.

Additionally, the emergence of inexpensive 5G smartphones has had a substantial impact on these products' typical selling prices. Reports state that between April and May, the average selling price of 5G smartphones fell noticeably by 13.3% to USD 391. This price drop has sped up the adoption of 5G cellphones among various consumer groups.

The adoption of these services has remained somewhat gradual, despite telecom behemoths Reliance Jio and Bharti Airtel giving free 5G subscriptions. The disparity between smartphone sales and subscription growth can be ascribed to a number of things, such as network infrastructure, coverage restrictions, and the need for more public understanding of the advantages of 5G.

About a third of wireless data users in India, or 300 million subscribers, are expected to use 5G services by March 2025, as against an estimated 20-25 million as of March 2023. The balance two-thirds would continue to use 4G, claimed the CRISIL Ratings report published in March this year.

According to another analysis from Counterpoint’s Market Monitor service published in June this year, smartphone shipments to India decreased 19% YoY in Q1 2023 (January-March) to reach over 31 million units. Additionally to being the third consecutive quarter of decrease, this was the greatest Q1 decline ever experienced by India’s smartphone market. Shipments of mobile phones under Rs 30,000 each saw a steep fall, while the decline for those in the premium and ultra premium price range increased by 60–66%.