5G Galore? India Could Have 70-80 Million 5G Phones By 2022 End

India could see around 70 to 80 million 5G smartphones by the end of 2022 with spectrum auctions around the corner, allowing the masses to step into the 5G revolution, according to an ET report based on information from market trackers.

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Market research company IDC predicts that one in two devices shipped in India this year will come with 5G support. On the other hand, Counterpoint Research states 5G phones could only comprise 40 percent of the overall shipments. Counterpoint reports highlight that by March-end, 5G phones made 29 percent of the total smartphone shipments.

Demand for 5G smartphones is expected to rise with the news of 5G spectrum auctions commencing late July, with services expected to be rolled out by the end of 2022.

Growth area for 5G smartphones

The report highlights that today the average selling price of a 5G smartphone is around Rs 32,000. However, brands are working to push more devices in the Rs 10,000 to Rs 15,000 range by the end of the year to cater to the mass adoption following the rolling of the 5G services. This, however, will come at the cost of inferior features.

IDC research director, Navkendar Singh in a conversation with ET explains that people buying phones over Rs 15,000 don¡¯t go for 4G and are wanting to shift to 5G. Under Rs 10,000 5G hardware isn't going to be feasible as of now, thus the only segment that brands could bring more 5G devices would be the Rs 10,000 to Rs 15,000 bracket.

Alternatively, Counterpoint data has highlighted that 5G smartphones in India under Rs 15,000 have a share of 6 percent, until April 2022. Most 5G phones are being sold beyond Rs 20,000 with 41 percent of phones in the Rs 20,000 to Rs 30,000 bracket being a 5G model. The Rs 15,000 to Rs 20,000 bracket has a 26 percent share of 5G smartphones.

The shift to 5G handsets can also be blamed on SoC makers such as MediaTek and Qualcomm, according to Sravan Kundojjala, director at Strategy Analytics, who states that these companies have shifted their focus on 5G hardware that offers higher margins with 5G network chips, in general, costing three times more than 4G ones.

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Why is 5G expensive?

He highlights that democratisation of 5G support is yet to be done, primarily because implementing the tech is an expensive affair. The adoption is not just restricted to baseband. Vendors are required to invest in RF front-end that can in some cases be as expensive as the baseband itself, thus it¡¯s quite an undertaking for some investors.

According to Kundojjala, by limiting band support, and offering balanced specs in other aspects such as camera, display, brands can bring 5G prices down in the below Rs 15,000 range.

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