India's 5G Market: A Growing Force

India has become the second-largest 5G handset market globally, overtaking the US in the first half of 2024. This surge in India's 5G market is primarily attributed to the increasing availability of budget-friendly 5G handsets, making the technology accessible to a broader population. The affordability factor has played a key role in driving this growth, with major brands like Xiaomi, vivo, and Samsung releasing a range of affordable 5G smartphones.

Qualcomm's Role in India's 5G Revolution

Qualcomm has been instrumental in driving the adoption of 5G in India. The company has developed a low-cost 5G solution, the Snapdragon 4s Gen 2, specifically targeting emerging markets like India. This chipset brings down the cost of 5G handsets to $99, making them accessible to a wider consumer base.

• Qualcomm's focus on affordability has been driven by the understanding that leaving large segments of the population without 5G access would hinder the technology's full potential. The company's efforts to democratize 5G in India are a testament to this vision.
• The Snapdragon 4s Gen 2 chip is a major breakthrough in enabling affordable 5G access. It showcases Qualcomm's commitment to pushing the boundaries of technology and making it available to everyone.

Challenges Faced by Qualcomm in Developing Affordable 5G Solutions

Developing affordable 5G solutions presented significant challenges for Qualcomm. The company had to rethink its typical approach to chip design and development to create a solution that would be both cost-effective and deliver a compelling 5G experience.

• Qualcomm had to move away from its traditional focus on high-end technology and find ways to reduce costs without compromising on features.
• The company had to design a new modem specifically for the affordable 5G segment, as existing modems couldn't be scaled down to achieve the desired price point.

The Future of 5G in India

The 5G market in India is poised for continued growth, driven by increasing 5G network expansion and the growing availability of affordable 5G handsets. This trend will further be fueled by the democratization of 5G technology, making it accessible to a broader population.

• With the availability of 5G handsets at lower price points, the demand for 5G services is expected to rise significantly.
• The global 5G handset shipments witnessed a 20 percent year-on-year (YoY) growth in the first half of 2024, highlighting the strong momentum in the market.
• The 5G market in India will continue to be driven by the increasing demand for high-speed internet and data services. The availability of affordable 5G handsets will further accelerate this growth, making 5G accessible to a broader consumer base.

Qualcomm's Vision for the Future: 6G

Qualcomm plans to continue its strategy of making cutting-edge technology accessible to a wider audience by offering affordable 6G solutions. This will follow a similar trajectory to its 5G strategy, where initial high-end solutions are later made more affordable.

• The company's commitment to affordability ensures that the benefits of emerging technologies reach everyone, regardless of their budget. Qualcomm's dedication to democratizing 6G will further accelerate the adoption of this revolutionary technology.

Impact of Affordable 5G Handsets on the Indian Smartphone Market

The emergence of affordable 5G handsets has had a significant impact on the Indian smartphone market. The trend of increasing 5G penetration in lower price segments is driving rapid growth in the market.

• The price bands of INR 20,000-INR 30,000 (~$240-$360) and >INR 45,000 (>~$540) saw the fastest growth at 25 per cent and 24 per cent YoY respectively.
• MediaTek has emerged as the leading chipset provider in India's smartphone market, capturing a 54 percent market share during April-June 2024. Qualcomm continues to dominate the premium segment with a 33 percent share.