Opinion: 5G smartphones stole the show in 2023. Here’s what 2024 holds

A recent study by Deloitte suggests that India is set to have 1 billion smartphone users, mainly powered by rural areas, where there is an increasing demand for internet-enabled phones. The country is expected to become the second-largest smartphone manufacturer within five years.

Moreover, data is comparatively cheaper in India, which leads to an average Indian spending nearly 5 hours using their digital companion daily.

Indians are not willing to compromise on quality regarding smartphones and are eager to pay more for a better product. This is evident as India’s average smartphone purchase price has increased by 5 per cent to INR 21,000, which is higher than the average monthly income in wealthy urban areas at just over INR 21,000.

Indian consumers have evolved and matured. While price remains a deciding factor in many purchase decisions in India, it is secondary when buying smartphones.

A 5G-Powered Society in 2023
In 2023, the Indian market was captivated by the capabilities of 5G phones, which enabled users to download and access a plethora of AI-powered tools and services with lightning-fast speed. By this time, 5G services had already been rolled out across thousands of cities in India, leading to a surge in demand for 5G-enabled phones in the later part of the year.

During the third quarter of 2023, 58 per cent of all smartphone shipments were 5G-enabled phones. Although most new 5G smartphones were priced between INR 8,400 to INR 16,700, the average selling price for 5G phones was INR 29,700. This indicates that most consumers were willing to pay more for a higher-spec 5G phone that had more features, rather than settling for a cheaper 5G phone with fewer features and lower specifications. The 9 per cent drop in the average price of 5G smartphones suggests that manufacturers were trying to make it more affordable for consumers to buy 5G phones.

By 2023, India had become a 5G-centric society as 5G services became more common. Smartphones had surpassed TV in terms of usage, with the average Indian spending 4.9 hours daily on their phone. However, prolonged use of smartphones can affect the body and mind due to low Pulse Width Modulation (PWM) frequency, which can cause screen flickering, headaches, and eye strain. A higher PWM frequency ensures a smooth smartphone experience and seamless interactions. This shift towards 5G-powered living shows India’s changing dynamics of everyday life.

Indians use smartphones not only to stream content but also to connect with friends, family, and the world through social media. The number of social media influencers and aspiring influencers is growing, and 5G phones with AI-powered tools allow them to create high-quality content. With powerful smartphone cameras, social media in India is filled with more immersive and lifelike content than ever before. One leading premium brand released a phone with a 48MP primary camera, while another top brand released a smartphone with an incredible 200MP primary camera.

USB-C became more common in 2023, making charging more convenient and allowing data to be transferred more quickly. Recent advances in AI have led to phones adapting to their owners. Such AI recognises its smartphone owners’ habits and optimises its functioning to make an innovative smartphone even more brilliant.

While AI on smartphones makes virtual reality more accessible, Indian consumers have yet to take to VR. The high cost of VR headsets and virtual worlds that lack realism are holding back VR adoption in India.

Looking back, 2023 will be remembered as the year when the popularity of 5G smartphones increased significantly in India. In contrast, 2024 will be known as the year when the Indian smartphone market grew, after two consecutive years of decline. Much of the expected growth in 2024 will come from the demand for 5G phones, as Indian consumers see the value of this technology. Smartphone manufacturers will face considerable competition to attract consumers, especially in the market for 5G smartphones priced under INR 10,000.

Moreover, 2024 will be the year when foldable smartphones become mainstream. Many consumers looking for an ultra-premium smartphone will opt for a foldable phone, which offers new functionalities and features due to its unique design. In the ultra-premium segment, the dominance of the brick-shaped smartphone will be challenged in 2024. The increase in foldable phones will be the most significant disruption to the smartphone market in years.

The author, Madhav Sheth, is the CEO of HTech, and is a veteran of the Indian smartphone market. Views expressed are the author’s own.