3G smartphone demand declining, handset makers like Samsung, Micromax and others to launch only 4G phones

Third-generation (3G) smartphones are headed for a quick exit in India, with prices of the more advanced 4G devices plunging and plans by large manufacturers to completely withdraw from the segment in six months.

Samsung Electronics, Oppo, VivoBSE 0.00 %, Lenovo-Motorola, HTC, Micromax Informatics and Panasonic have decided that they will now launch only 4G smartphones and some of them are clearing out their 3G smartphone stocks, four senior industry executives said.

Retailers said demand for 3G smartphones has been declining over the past two or three months, in the run-up to the launch of services by Reliance Jio Infocomm.

Jio, which started commercial operations earlier this month, is offering 4G data and voice services free with almost all major smartphone brands until the end of the year. It has also cut the price of its entry-level 4G Lyf smartphones to Rs 2,999 from Rs 3,999.

Other smartphone makers may follow suit, bridging the gap with entry-level 3G smartphones that are priced upwards of Rs 2,500.

"We are not placing any new orders for 3G smartphones. Manufacturers are not importing any new 3G phones," said Subhash Chandra, managing director of south-based retailer Sangeetha Mobiles.

Samsung, the country's largest cellphone maker, has only three 3G smartphones in its portfolio and the remaining 22 models are all 4G. While the company did not confirm when it will exit 3G handsets, it said 4G phones are becoming the mainstream.

Sales of 4G devices are picking up because there is already a large base of smartphone users using 3G/2G smartphones, said Manu Sharma, vice president (mobiles business) at Samsung India Electronics.

"Hence, they would want to take advantage of the 4G offering with higher speeds and reduced data tariff plans. The ecosystem of content, services and applications has evolved significantly, which is fuelling adoption," said Sharma.

Chinese rival Oppo India will transit to a completely 4G portfolio from 2017 by discontinuing its sole 3G model, company president Sky Li said. HTC president (South Asia and India) Faisal Siddiqui said with 4G smartphone prices plunging in India, it will exit 3G smartphones by March.

Handsets that support 4G accounted for 65 per cent of smartphone shipments in India in the quarter ended June and are projected to reach 90 per cent of the market by the same period next year, according to Hong Kong-based tracker Counterpoint Technology Market Research.

Counterpoint's senior analyst Tarun Pathak said a maturing component ecosystem will lower the pricing of entry-level 4G handsets to about $40 (about Rs 2,600) by the end of 2016.

Bell And Nokia Collaborate On 5G Mobile Technology

5G mobile data speeds will be come an industry standard within the mobile market in the next 5-7 years, as Bell and Nokia press forward with this new innovation in mobile connectivity.

The pair have recently completed a trial run of 5G mobile technology, which was conducted at Bell’s Wireless Innovation Centre located in Mississauga.

Bell’s Chief Technology Officer and Executive Vice President: Bell’s strategic focus on driving broadband network and service innovation has been key to our transformation into Canada’s wireless leader. The success of the first 5G trial means we are well positioned to lead the way to the next generation of mobile technology.

According to the press release “the trial leveraged spectrum in the 73 GHz range”.

At the forefront of mobile communications technology, Bell Canada which is one of the largest mobile Carrier in the country with a customer base of  8,716,789 subscribers, is working with companies around the world in bringing 5G mobile technology to end users.

Alex Giosa, Country Senior Officer, Canada, at Nokia: We have had a long and productive history with Bell, and look forward to our continued joint work and testing to discover what 5G technology can offer Bell’s Canadian subscribers.

It becomes more important to have faster and more reliable speeds as sectors in the automotive, broadcast, aviation, mobile and more… are manufacturing products with a higher level of connectivity not seen before.

5G is said to be more than 6 times faster than the industry standard 4G. While this technology has several more years before its roll out, consumers at least have an idea of what to expect in the next generation of mobile communications.

Let’s just hope the price for admission isn’t an arm and a leg when it comes to mobile data plans in this country as they already are. It’s well-known that Canadians still pay among the highest mobile rates in the industrialized world.