Mobiles

Independence Day 2022: 5G phone shipment will continue to gain momentum across price tiers

In Q2 2022, one out of every three smartphones shipped in was a 5G capable smartphone.

Published:Mon, August 15, 2022 5:46pm

By Md Waquar Haider

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Demand for smartphones in the country is expected to increase at a CAGR of 6 percent, to reach about 400 million devices in 2026 from 300 million in 2021. According to the Deloitte report, this high demand is likely to be primarily created after the launch of 5G, which is believed to become the fastest-adopted mobile technology due its diverse applications, such as high-speed gaming and remote healthcare. Across price tiers, 5G smartphone shipments are gaining in strength, and contributing to increased affordability, availability and accessibility. With smartphone brands, such as OnePlus, OPPO, realme, Samsung and vivo prioritizing 5G, and consumers seeking to future-proof themselves, will 5G continue gain momentum.

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In Q2 2022, one out of every three smartphones shipped in was a 5G capable smartphone. 5G smartphone shipments grew 7 percent QoQ, a stupendous 163 percent YoY in Q2 2022 and it will further increase thanks to nationwide 5G rollout. According to CyberMedia Research (CMR), in Q2 Samsung led the 5G smartphone segment with a 28 percent market share, followed by Vivo with a 15 percent market share. Value for money 5G smartphone shipments (Rs 7,000-Rs 24,999) grew >160 percent YoY, whereas overall smartphone shipments in this segment grew 12 percent YoY. Affordable smartphone shipments (sub-Rs 7,000) declined 61 percent YoY. Premium smartphones (Rs 25,000-Rs 50,000) and super premium smartphones (Rs 50,000-INR 1,00,000) grew by > 80 percent and 96 percent YoY respectively. Consumer appetite in the premium smartphone segment continues to be robust. Now, in coming months 5G smartphone shipment will continue to gain momentum across price tiers.

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"India will have 1 billion smartphone users by 2026. This growth will result in over 75 percent of the subscribers' using smartphones by 2026 from a sub-70 percent as on date. 5G-enabled devices will contribute 80 percent to the devices being sold in the year 2026 and Indian consumers will purchase 840 million 5G smartphones over the next 5 years valued at $130 billion," Peeyush Vaish, partner & telecom sector leader, Deloitte India said.

To recall, in Q1 2022 5G shipments grew >300 percent YoY, with overall smartphone shipments growing 1.6 percent YoY. Samsung led the 5G smartphone segment with 23 percent market share, followed by Xiaomi with 18 percent market share. In Q1 2022, the overall feature phone segment declined 43 percent YoY, driven by supply side constraints, increase in operator tariff plans as well as rising inflationary trends. The 2G feature phone and 4G feature phone segment declined by 42 percent and 50 percent YoY respectively. In Q2 2022, the overall feature phone segment declined for the second consecutive quarter, driven by rising inflationary trends. The 2G feature phone grew 4 percent in YoY and 4G feature phone segment declined 45 percent YoY respectively.

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According to Menka Kumari, Analyst- Industry Intelligence Group, CyberMedia Research (CMR), "Shipments of 5G-capable smartphones has been growing robustly over the last few quarters. With the completion of 5G auctions, and anticipated roll-out of 5G services in India shortly, there will be further momentum in 5G smartphone shipments. During Q2 2022, consumer demand ebbed owing to the overall macro-economic environment. As H2 2022 begins, smartphone brands will focus more on offering lucrative schemes, offers and discounts to clear out their piling inventory."

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