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 India is projected to see about 100 million smartphone sales in the second half of this year (July-December period), and online platforms are likely to contribute more than 55 per cent of the total revenue, a report showed on Saturday. 

Nearly 80 per cent of these smartphones will be 5G devices, according to the report by market research firm Techarc.

The robust growth will take the total annual sales of smartphones for 2024 to settle at 155-158 million units -- a 7-9 per cent increase in volume sales over previous year.

The political stability coupled with economic growth is seen as a factor in bringing the market back in action.

“The big shift in the strategy of smartphone original equipment manufacturers (OEMs) after the Covid era will start showing its impact in the second half of 2024 and define the market dynamics for next couple of years for the smartphone industry in India,” said Faisal Kawoosa, chief analyst and founder, Techarc.

The OEMs are leveraging the technology waterfall and diversifying their portfolio across the customer segments they want to focus.

The 5G technology is no longer a differentiator but has become the default cellular technology being expected by consumers irrespective of the price segment they are looking for smartphones within.

The gap between 5G live smartphones and 5G subscribers will continue to remain with 70-75 per cent of 5G smartphone users actually using a 5G service.

Similarly, users in areas like semi-urban and rural territories where BSNL 4G services are expected to see gaining most, the subscribers are expected to buy a 5G smartphone over 4G smartphone opening up opportunity for Rs 8,000-12,000 (basic segment) of 5G smartphones, the report mentioned.

Among the form-factors, ‘fold and flip’ gains the confidence of consumers and moves from an ‘intriguing’ form-factor to an ‘interesting’ form-factor.

“Our estimates suggest the sales push during the festive period should help cross 1 million foldable smartphone sales for 2024,” the report mentioned.

There are six smartphone OEMs offering foldable smartphones to consumers.

While foldable smartphones will continue to remain a niche cohort of the market, the OEMs need to package it as a solution rather than attempting to leverage only on the form-factor, the report suggested.