India has surpassed the US to become the world's second-largest market for 5G handsets, trailing only China.
According to Counterpoint's Market Monitor service, this shift comes as global shipments of 5G handsets surged by 20% year-over-year (YoY) in the first half of 2024.
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Budget Segment Triumphs
Senior Research Analyst at Counterpoint Research, Prachir Singh, remarked on the overall market dynamics, noting that 5G handset shipments have been consistently increasing. He highlighted that the rise in availability of budget-friendly 5G handsets has led to significant growth in emerging markets.
According to Singh, India has become the second-largest 5G handset market, surpassing the US during the first half of the year. “The strong shipments from Xiaomi, vivo, Samsung and other brands in the budget segment were the main reason for this trend. Other emerging markets also witnessed high growth in 5G handsets. Consumers in emerging markets are looking at 5G handsets as an upgrade to their devices, even in the lower price segments,” explained Singh.
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CALA Region Soars
“The Caribbean and Latin America (CALA) region was the fastest-growing region, registering 63% YoY growth, driven by high growth in key countries like Mexico and Brazil. The CALA region accounted for 14% of global net adds despite having a 6% 5G shipment share in H1 2024. Asia Pacific accounted for 63% of the overall global net adds and commanded a 58% 5G shipment share. In Europe and the Middle East and Africa (MEA) regions also, 5G handset shipments witnessed double-digit growth,” he added.
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Operator Market Share Analysis
Apple led global 5G handset shipments, capturing over 25% of the market share, due to strong sales of the iPhone 15 and 14 series. Samsung was the second-largest player with more than 21% of the market, driven by its Galaxy A and S24 series. Both Apple and Samsung secured five positions each in the top-10 list of 5G models for the first half of 2024, with Apple dominating the top four spots.
Xiaomi ranked third, primarily due to significant growth in India, where it saw triple-digit increases, and double-digit growth in the Middle East, Europe, and China. vivo also experienced notable growth, driven by strong performances in India, China, and other emerging Asian markets. Among the top 10 brands, Motorola achieved the fastest growth, with notable advances in the CALA region, India, MEA, and North America.
Commenting on the near-term outlook for 5G shipments, Research Director, Tarun Pathak, indicated that, “5G handset contribution to the overall handset market was over 54% in H1 2024, crossing 50% for the first time. As the democratization of 5G handsets increases with increasing 5G penetration in lower price segments as well as increasing expansion of 5G networks, this trend will further grow. The ongoing global premiumization trend will further fuel this growth. According to our market outlook, [the] 5G share will cross 57% in 2024 and 65% in 2025.”
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