HMD Global, the manufacturer of mobile devices bearing the Nokia brand, will collaborate with significant industry players to lower the cost of 5G-enabled smartphones for the Indian market. The company also said that when the services are made widely available, launching “affordable” devices will be a top priority.
We are excited to discuss 5G for India with important partners. It is obvious that we will concentrate on the 5G market’s cheap segment. According to Florian Seiche, CEO of HMD Global, “We are clearly focused on providing 5G to a much wider audience through our complete smartphone range.”
The inexpensive G series of smartphones will have more 5G-enabled devices this year than the mid- to high-end X-series smartphones in 2022. “Bringing the 5G experience stronger in our smartphone line up” is our top objective, he continued.
We are one of the top two device manufacturers in the US right now in the inexpensive 5G smartphone market,” he continued.
Launching products in the $100–150 range depends on supply and demand, according to Sanmeet Singh Kochhar, Vice President of HMD Global and head of the Indian market.
Prices aren’t falling dramatically, though, because 5G chipsets are currently more expensive than 4G chipsets.
With services scheduled to begin rolling out by the end of the year, India is set to auction 5G spectrum this month at the end.
“Currently, 5G gadgets cost between Rs 14,000 and Rs 15,000 and are gradually getting cheaper. It will eventually drop to about $100, but we need to wait and see when that will happen,” he added.
According to a recent Crisil analysis, price reductions for 5G phones are unlikely to occur in the near future and are only expected to occur during the festival quarter of 2022, when sellers are more likely to clear their inventories.
By the end of 2022, India will have 70–80 million 5G smartphones thanks to brands’ increased investment in next-generation technologies in anticipation of upcoming spectrum auctions, according to market analysts.
While Counterpoint Research estimates that just under 40% of all devices shipped in India this year would support 5G, IDC believes that one in every two devices will.
While brands are aiming to push more smartphones in the Rs 10,000–15,000 bracket by the end of the year to appeal to a bigger mass of consumers and boost smartphone adoption, experts noted that the current average selling price (ASP) of 5G phones is Rs 32,000.