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NEW DELHI — With the smartphone market registering 10 per cent (year-on-year) growth in the first quarter (Q1) of 2024 in India and 5G devices capturing 70 per cent share, analysts on Thursday said that the market in this year and beyond is poised for fierce competition in the affordable 5G segment.
According to CyberMedia Research (CMR), the 5G smartphone shipments marked a notable 91 per cent (year-on-year) growth this year. The 5G devices in the price band of INR 10,000 to INR 15,000 grew by over 400 per cent (year-on-year).
"Brands that capitalise on these trends -- affordable 5G, powerful on-device AI, and seamless cross-device experiences -- will be well-positioned to win in this growing but hypercompetitive market," said Bhaskar Negi, Analyst-Industry Intelligence Group, CMR.
The analysts estimated that the country's smartphone market to grow 7-8 per cent in 2024, driven by strong demand for 5G and AI smartphones.
In Q1, Samsung led the 5G smartphone market with a 22 per cent share. The overall mobile market shipments recorded growth of 20 per cent (year-on-year).
"India's smartphone market witnessed a significant surge in 5G adoption as well as a clear ongoing push towards premiumisation," said Menka Kumari, Analyst- Industry Intelligence Group, CMR.
"The onset of AI phones further fueled the premiumisation wave. The super-premium smartphone category (over INR 50,000) experienced a notable 47 per cent (year-on-year) growth, indicating a rising preference among consumers for high-end devices," she added.
The value-for-money smartphone segment (INR 7,000- INR 25,000) constituted the largest share at 65 per cent, whereas the affordable smartphone segment (below INR 7,000) experienced 16 per cent (year-on-year) growth.
The Premium smartphone segment (over INR 25,000) recorded growth of 71 per cent, which is fueled by easy payment options and premium features like AI.