Will 4G smartphones see price cut after 5G rollout?

Prime Minister Narendra Modi will officially inaugurate the first 5G mobile services in the country on Saturday (October 1) at the India Mobile Congress (IMC) 2022 in New Delhi. The government expects 5G services to be rolled out pan-India by telecos by October 12. The government has already said that it will take measures to ensure that the 5G services prices are affordable for consumers.

Earlier, IT Minister Ashwini Vaishnaw said that installations of 5G towers are underway and telecom operators are busy ensuring the seamless rollout of services. The 5G services would be rolled out in a phased manner. In the first phase, 13 cities -- Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gandhinagar, Gurugram, Hyderabad, Jamnagar, Kolkata, Lucknow, Mumbai and Pune -- are likely to get the 5G mobile services.

Just like 3G and 4G, telecom companies will soon announce dedicated 5G tariff plans. In fact, experts are expecting smartphone brands in India to launch more affordable 5G phones and cut the 4G smartphones prices. 

Amit Sharma, analyst - Industry Intelligence Group, CyberMedia Research, told Zee Business: "We anticipate 4G smartphone prices to drop across the board. There has been a huge inventory pile-up in the channels." 

"With 5G roll-out in the offing, OEMs will be focusing on clearing out their old stocks, primarily the phones with 4G technology by offering good discounts, promotional schemes, exchange offers, in the festive season period, and beyond," Sharma added.

According to Tarun Pathak, Research Director at Counterpoint Research, 4G smartphone makers will be further pushed to cut their prices, especially sub 10K first and then sub 6K in the next 1-2 years. 

"Brand will also try to get rid of 4G inventory above 15K by reducing prices. However, launching a great 5G phone in sub $200 still requires some trade off. And hence 4G phones will have that sub $200 segment to play in for sometime but next year they will be pushed to lower price points faster," he said.

When asked if 4G smartphones will get cheaper in India post 5G roll out, Faisal Kawoosa, founder analyst at TechArc told Zee Business: "I don’t think so, though 4G will contract it will still remain relevant and show a stable demand, which OEMs can leverage by keeping prices stable."