India smartphone market poised for fierce competition in affordable 5G segment

New Delhi, May 9: With the smartphone market registering 10 percent (year on year) growth in the first quarter (Q1) of 2024 in India and 5G devices capturing 70 percent 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 Cyber Media Research (CMR), the 5G smartphone shipments marked a notable 91 percent (year on year) growth this year. The 5G devices in the price band of Rs 10,000 to Rs 15,000 grew by over 400 percent (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 percent in 2024, driven by strong demand for 5G and AI smartphones.

In Q1, Samsung led the 5G smartphone market with a 22 percent 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 Rs 50,000) experienced a notable 47 percent (year on year) growth, indicating a rising preference among consumers for high end devices," she added.

The value for money smartphone segment (Rs 7,000 Rs 25,000) constituted the largest share at 65 percent, whereas the affordable smartphone segment (below Rs 7,000) experienced 16 percent (year on year) growth.

The Premium smartphone segment (over Rs 25,000) recorded growth of 71 percent, which is fueled by easy payment options and premium features like AI.