India to register over 930% growth in 5G-enabled smartphone shipments in 2021

• 5G has been gaining steam in India despite the official rollout of the fifth generation of the network.
• Telecom operators in India are expected to do a soft launch of 5G network in 2022 in metro cities using the NSA networks and Dynamic Spectrum Sharing.
• Smartphones are expected to grow from 152m in 2020 to 170m this year, registering a growth of 11.84%.
• 5G smartphone shipments in the first five years will surpass the shipments of 4G smartphones.
• Realme wants to be the 5G leader in India in 2021 and plans to bring devices under Rs10,000 while new models priced above Rs15,000 will be 5G enabled.

India will witness more than 930 per cent growth in 5G smartphone shipments to 31 million units this year compared to about three million last year.

Tarun Pathak, Research Director at Counterpoint Research, said that 5G has been gaining steam in India despite the official rollout of the fifth generation of network.

“The 5G device ecosystem preceded the network rollout for the first time than any other Gs.  Consumers are buying early, as OEMs deliver step-change improvements in performance, features and design across a very broad range of segments,” he said.

Bharti Airtel takes lead

Telecom operators in India are expected to do a soft launch of the 5G network in 2022 in metro cities using the NSA (non-standalone) networks and Dynamic Spectrum Sharing.

Bharti Airtel took the lead by testing the first live network in Hyderabad in January.

In May 2021, DoT approved telcos applications for 5G trials.

Pathak said that 5G is not only available in premium flagships but also mid- and low-range devices.

India is the second-biggest market, after China, for smartphones and he said that it still not saturated yet.

In May 2021 data, 14 per cent of the smartphones sold in India were 5G-enabled smartphones.

Smartphones are expected to grow from 152 million in 2020 to 170 million this year, registering a growth of 11.84 per cent.

Huge opportunity

Pathak said that India provides a huge growth opportunity for everyone in the value chain.

“We believe that India will connect half a billion internet users for the first time in the next five years and close to a billion smartphones will be sold, along with 300 million feature phones,” he said.

In terms of revenue opportunity, he said that it is about $30 billion per year and in the next five years, it is expected to be worth $150 billion.

In the next five years, he said that the cumulative number of 5G smartphone shipments will surpass the shipments of 4G smartphones in first five years.

In India, he said that the average smartphone replacement rate is 24 months and customers want their phones to be future-ready with their investment today.

OEMs are driving the transition; he said and added that new brands like Realme are already helping to make 5G phones accessible.  The other 5G brands in India are OnePlus, Oppo, Xiaomi and Samsung.

OnePlus led the 5G smartphone shipments with a 33 per cent share in the first quarter while Realme had the cheapest 5G offering in the quarter.

In May, Realme was the number one 5G-ranked smartphone.

Realme to bring devices to masses

“We want to be the 5G leader in India in 2021, making the technology more accessible from premium to the masses. We are the first to bring 5G at different price points. After we bought 5G phones under Rs30,000, other brands are following our footsteps,” Madhav Sheth, Vice President of Realme and CEO for India and Europe,  said.

He said that the company aims to bring 5G devices under Rs10,000 while new models priced above Rs15,000 will be 5G enabled.

“Currently, 90 per cent of its R&D resources are converted to 5G technology and products. 5G has been identified as a growing trend in India and customers are looking to embrace 5G,” he said.

Quoting Google’s data, he said that 5G-related searches have grown more than 245 per cent between June 2020 and June 2021 while YouTube searches by more than 326 per cent.

Realme is planning to launch series of GT models in India in the next quarter as part of its 5G strategy and planning to expand its 5G portfolio in the Narzo line.

“5G is coming more quickly than previous mobile technology. However, the real impact will take some time. The average selling price of a 5G device was $663 in 2020 and it is expected to be $520 this year and will eventually fall to $230 by 2024,” Pathak said.

In China, there are 5G phones for as low as $140, he said, and the same is going to happen in India and other markets.