Despite the lack of visibility on the installation of next-generation networks in India, telecom market trackers estimate that 37-40 million mobile phone users would be on handsets supporting 5G technology by the end of this year, i.e., ten times greater than in 2020.
In fact, during the holiday season, 5G smartphone sales are predicted to increase by 30% in volume and 50% in value, owing to a strong brand push and consumers seeking future-proof purchases. By 2021, the installed base of 5G is estimated to be over 40 million. In comparison to 2020, 5G shipments would increase by a factor of ten in 2021.
Growth is entirely driven by supply, handset manufacturers are releasing 5G phones to differentiate themselves and increase their sales. China has also played a significant role in the transition to 5G. As a result, Chinese manufacturers are able to offer 5G phones in the mid-range price range. India’s 5G smartphone installed base is expected to surpass 35 million by the end of 2021, up from over 17 million in August, according to Counterpoint Research.
Analysts said that 5G will be the favoured standard for smartphone sales in the October-December quarter, as people are buying more expensive handsets with higher average selling prices. Consumers will want to know that their money is safeguarded in the future. At the same time, the industry has done an excellent job of making 5G smartphones affordable to a wide range of consumers.
The sale of 5G devices comes as Indian telecom carriers Reliance Jio, Bharti Airtel NSE -0.64%, and Vodafone Idea NSE -1.55 per cent continue to test various 5G use cases across the country. They recently requested a one-year extension to undertake 5G experiments as their permits expire on November 26, according to industry executives.
If the telecom department agrees, the auction of the 5G spectrum would be delayed until the second half of 2022, and service rollouts will be delayed for at least six months.
According to TechArc, 5G smartphone sales in 2021 are predicted to total 28.3 million devices, with 12.7 million expected to be sold over the holiday season (October to December).
According to Prachir Singh, an analyst at Counterpoint Research, 5G smartphone sales would account for 50% of the overall smartphone market by value and 30% by volume in the festive season of 2021. The majority of smartphones in the 20,000 and above price ranges are 5G capable. This segment has a high level of 5G penetration.
Since July 2021, 26 smartphones have been released with 5G capabilities. According to TechArc’s analysis, these cellphones are expanding into 53 variants with distinct RAM-ROM configurations. These are primarily the 5G smartphones that will be available in Q4.
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