Cumulative 5G smartphone shipments are expected to surpass 100 million in the second quarter (Q2) of next year and surpass 4G smartphone shipments by the end of 2023, according to a new report.
The share of 5G in lower price bands (less than Rs 20,000) is gradually increasing, from 4 percent in 2021 to 14 percent in 2022. It is expected to reach 30 percent in 2023.
“With the launch of the Lava Blaze 5G in 2022, the cost of an entry-level 5G smartphone fell below Rs 10,000,” according to Counterpoint Research report released on Wednesday.
The report noted that the availability of lower-cost 5G chipsets from Qualcomm and MediaTek has enabled OEMs to launch more 5G devices in the lower-price segment, while the commercial rollout of 5G services has also driven demand for the same.
5G smartphone shipments are expected to increase 81 percent year on year in 2022, owing to their growing presence in lower price bands (Rs 20,000) and the rollout of 5G networks. However, growth has been limited in this segment due to component supply shortages, inflation, geopolitical conflicts, and other macroeconomic issues, which have delayed the launch of 5G devices in the budget segment, IANS reported from New Delhi.
Although OEMs have introduced more 5G devices in lower price bands, they have done so by removing or downgrading other key features such as display or fast charging to mitigate the impact of rising component costs “We anticipate that these constraints will be lifted by the end of 2023, paving the way for widespread 5G adoption.