“We are eager to look forward to partnering with key partners on 5G for India. It will obviously be the affordable segment of the 5G market that we will focus on,” HMD Global CEO Florian Sych told ET.
In 2022, along with mid-to-premium X-series smartphones, more devices in the affordable G series will feature 5G this year. He added, “…this is our priority to make the 5G experience even more powerful in our smartphone lineup.”
“…we want to deliver a great experience at an affordable cost. We have shown that in the US market with what we do with operator customers. We are launching 5G phones in droves. In the affordable 5G smartphone segment, we are one of the two leading device manufacturers at the moment. in the United States “.
Sanmeet Singh Kochhar, Vice President of HMD Global, who also heads the Indian market, said the $100-$150 device launch is a function of demand and supply. However, the current prices of 5G chipsets are higher than 4G chips and therefore prices do not drop sharply.
“5G will be coming soon and there will be a huge demand for 5G smartphones,” Kochar said, adding that the cost of 5G chips will fall as demand rises,
India is preparing to auction 5G spectrum at the end of this month, and rollout is expected to start by the end of the year.
“As of now, 5G devices are around Rs 14,000-15,000 and are slowly dropping. At some point, it will drop to around $100, but we need to know when that will happen.”
A recently published Crisil report said that prices for 5G phones are unlikely to fall in the near term, and any relief is possible only in the festival quarter in 2022, when sellers are likely to liquidate inventory.
Market trackers have said India will have 70-80 million 5G smartphones by the end of 2022 as brands of next-generation technology multiply as spectrum auctions approach.
While IDC expects that one in two devices shipped in India this year will support 5G, Counterpoint Research puts it at less than 40% of total shipments. At the end of March, 5G smartphones accounted for 29% of all smartphone shipments, according to Counterpoint.
While the current average selling price (ASP) of 5G phones is Rs 32,000, brands are striving to push more devices in the Rs 10,000-15,000 range by the end of the year to cater to a larger segment of consumers and drive smartphone adoption, analysts said.