5G ready India?
The advent of 5G technology has been a game-changer in the world of smartphones, offering faster connectivity, lower latency, and a plethora of possibilities for users. In India, the 5G smartphone market has seen remarkable growth in recent quarters. In the third quarter of this year, the 5G smartphone shipment growth in India surged by a remarkable 57%, signifying a significant shift in the mobile industry. This article delves into the factors driving this growth and its implications for the Indian smartphone market.
- 5G Infrastructure Expansion: Growing 5G network coverage drives 5G smartphone demand.
- Affordable 5G Devices: Budget-friendly 5G smartphones broaden accessibility.
- Intense Market Competition: Competition lowers prices and brings innovation, encouraging upgrades.
- Evolving Consumer Preferences: Demand for faster and more reliable connectivity increases 5G adoption.
- Future-Proofing: Consumers opt for 5G to prepare for advanced applications and service’s.
In Q3 2022, the affordable smartphone segment (below INR 7000) saw a 57% YoY decline in sales. Consumer demand was strong in the value-for-money segment (INR 7000-INR 25,000), where 79% of smartphones were shipped. The premium segment (INR 25,000-INR 50,000) and super-premium segment (INR 50,000-INR 1,00,000) witnessed 9% and 39% YoY growth in shipments, respectively. The top three smartphone brands in Q3 2022 were Xiaomi (22%), Samsung (20%), and Realme (14%), followed by Vivo (12%) and OPPO (10%). 5G smartphone shipments grew by 30% YoY and 21% QoQ, with Samsung and OnePlus leading the 5G market with 23% and 15% market share, respectively.
Navkendar Singh, AVP, Devices Research, IDC said ‘sing. The availability of micro-financing options and affordability initiatives for budget devices provided a modest boost at the start of the festive season. However, as demand is expected to decrease in the latter half of the quarter, brands may encounter excess inventory issues. Therefore, the overall outlook for 2023 suggests a flat or a low single-digit decline.’
he also stated that ‘In the latter half of the quarter after Diwali, there might be reduced demand, leading to potential excess inventory issues for brands. Therefore, the outlook for 2023 suggests a minimal decline or stagnant growth. In the following year, we can expect affordable 5G and foldable phones in the mid to premium segments, but factors like inflation and longer device refresh cycles could limit overall market growth in 2024.’
Despite the festive season, the outlook for 2023 is not very encouraging for smartphone makers.
In conclusion, the rise in 5G smartphone shipments is a testament to India’s growing appetite for cutting-edge technology. As 5G infrastructure expands, the market continues to diversify, and consumer expectations evolve, India is well on its way to becoming a 5G leader in the smartphone industry. The Q3 surge is just the beginning of what promises to be an exciting journey for the Indian smartphone market.
