07:27 03rd Sep, 2022
Will 5G Rollout Exclude the Budget Smartphones? | TechTree.com
Will 5G Rollout Exclude the Budget Smartphones?
Handsets advertised as 5G-enabled may not have many takers as 4G may rule the roost for a while
In case you are hoping to utilize the 5G airwaves for watching that movie or have conference calls with your extended families across destinations, that budget handset (costing below Rs.12,000) may not make it happen. Not because they're not capable of handling 5G, but because companies may not be able to sell them at current prices.
The average sales price of smartphones have grown each quarter since the pandemic arrived in all its ferocity back in 2020. According to data provided by IDC, the cost of a handset stood at $213 that translates to around Rs.17,000, which means even the companies aren't too keen to cater to the so-called budget segment.
Maybe, we would witness their definition undergo a change with smartphones costing between Rs.16,000 to Rs.20,000 now earning the sobriquet of budget devices. Industry officials are also quite sure that 5G is being used merely to market a service that may have no takers in the short-term as 4G could well fulfill the aspirations of someone forking out just Rs.12,000.
Not to forget the fact that India's state-owned BSNL recently received a massive infusion of funds from the central government to bolster its 4G network. One may ask why they are taking up something that the 5G may render redundant. Because, there is a feeling that the early 5G costs may be prohibitive, given the amount of cash that telcos have burnt in acquiring spectrum.
In fact, this could be the reason that most of the brands in India haven't launched any new budget smartphone over 12 months. Industry experts say, it would be well nigh impossible to offer 5G enabled devices at those price points as the bare minimum hardware required for 5G to operate would automatically jack up production costs.
In fact, Madhav Sheth, CEO of Realme India had said brands that offered 5G phones under the Rs.15,000 ballpark may not be able to do so again, given that component costs have oscillated in tandem with the dollar-rupee fluctuations. He held the view that it would be sometime before a 5G phone priced below Rs.10,000 would hit the market.
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