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5G Phones Soar in Price: Will 4G Make a Comeback in India's Budget Market?
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News18•30-09-2026, 12:17
5G Phones Soar in Price: Will 4G Make a Comeback in India's Budget Market?
- •India's average smartphone selling price surged 16% in H1 2026, driven by higher memory costs and a weaker rupee, with phones under Rs 10,000 seeing a 32% price increase.
- •The rising cost of 5G components, coupled with increased memory prices and a weaker rupee, makes budget 5G phones harder to sell at competitive price points.
- •Shipments in the entry-level smartphone segment (below Rs 10,000) plummeted by approximately 65%, indicating significant pressure on this market category.
- •Manufacturers may reintroduce more affordable 4G models to control costs, especially for entry-level buyers prioritizing affordability over the latest connectivity.
- •For budget-conscious consumers, a 4G phone with better processor, more RAM, longer software support, and a larger battery might offer a superior overall experience than a cheaper 5G alternative.
Key Questions Answered
India's average smartphone selling price increased by 16% in the first half of 2026 due to higher memory costs, component inflation, and a weaker rupee. These rising production expenses have made budget 5G phones harder to sell at their previous price points.
Average prices for entry-level phones priced below Rs 10,000 rose by approximately 32% during the first half of 2026. Concurrently, shipments within this budget category experienced a sharp decline of about 65%.
No, 5G remains a key part of the market for mid-range and premium buyers, but manufacturers are increasingly utilizing 4G connectivity in entry-level models to control costs. This strategic segmentation helps brands offer affordable options for budget-conscious consumers.
