NEW DELHI: Reports on the death of the 4G smartphone appear to be grossly exaggerated.
Of all the smartphones sold in India, just about 5% will be 4G-only phones in 2026, and minimal by 2027, according to predictions from 2025. But as the global demand for memory chips surged, even an entry-level 5G smartphone turned an expensive manufacture, paving the way for a comeback of 4G phones.
“4G smartphones are expected to remain relevant in India, with their share increasing from 11% in 2025 to 15% in 2027—instead of declining steadily as we had originally predicted,” said Tarun Pathak, research director at independent market analysis firm Counterpoint India. “Rising memory costs and consequent increase on the bill of materials in entry-level 5G smartphones are encouraging brands to expand their 4G portfolios.”
Although both device types use memory chips, 5G smartphones require the more expensive, newer-generation, higher-bandwidth memory chips to handle faster network speeds and heavier computing demands. This makes 4G phones potentially less expensive to manufacture.
Retailer survey reports and market analysis data accessed exclusively by Mint showed that there has been an exponential rise of 2-3 times in the cost of memory and storage chips over the past 18 months. As a result, companies have been forced to increase the retail prices of inexpensive 5G smartphones to over ₹15,000.
In the past 12 months, every company barring Apple has raised prices of their smartphones—over seven tranches and up to 90% so far. On 7 April, Mint was the first to report that phone prices across Samsung, Oppo and Vivo, India’s top three brands, would rise by over 40%.
Stalling sales
Phones priced under ₹15,000 account for more than half of the smartphones sold in India annually and the sweeping price hikes have stalled sales this year. After a difficult first half of the year, analysts projected a 15% year-on-year drop in smartphone sales in India by December.
Companies now appear to be bringing 4G phones back in the hope of catering to buyers looking for new smartphones priced below ₹15,000. Analysts told Mint that Vivo, Lava and local newcomer Boltt may use 4G devices to lure buyers.
“Each brand will seek to protect their share of buyers in the under- ₹15,000 price range. The goal is to address first-time smartphone buyers that are highly price-sensitive,” said Pathak.
On 7 April, Vivo launched Y05 4G at ₹12,999. On 25 August, Noida-based Fire-Boltt entered the smartphone industry with two devices—of which one was 4G-only, priced at ₹10,999. And, on Thursday, Lava International launched Bold N4 Lite, a 4G-only smartphone at ₹7,999.
“The growth of the 4G segment this year is a calculated reality of the current economic climate. While 5G remains the definitive long-term growth driver for budget smartphones, our priority is to deliver value. Supported by rigorous R&D, we will continue to offer optimal, high-quality technology that aligns with actual consumer needs,” said Sumit Singh, senior vice-president and head of product at Lava International Ltd.
Earlier 4G-only launches include Samsung’s Galaxy M07 on 18 September at ₹6,999, Motorola’s G06 Power on 7 October at ₹7,499 and Oppo’s A6x on 2 December at ₹12,999.
While these may only be a handful of new 4G devices compared with the almost 150 smartphone models launched annually in India, they reflect an attempt by manufacturers to fill the gap in the affordable smartphone segment.
Price pressure
The memory chip supply shortage, rising out of artificial intelligence companies and data centres buying out memory manufacturing lines and putting other industries under pressure, has changed the balance of a globally established smartphone supply chain.
Counterpoint’s Pathak said that prior to 2025, memory chips accounted for “less than 15% of the total making cost of a smartphone.”
“The same has now exponentially expanded to over 40% of the bill of materials of a phone. For budget smartphones, it is very difficult to use 5G connectivity and other components without raising prices—thus leading to 5G devices now costing upward of ₹15,000 at the very least,” he said.
However, Navkendar Singh, associate vice-president at International Data Corporation India, said the current trend of 4G smartphone launches is a knee-jerk response to price pressures and may not have a mass-scale impact on sales.
“The overall specifications show that 4G phones being launched at under ₹10,000 are all running on components of older generations. Users are, therefore, not getting a truly new smartphone, even if they do get a newly packaged one at the budget ranges,” Singh said.
Emails sent to Boltt and Vivo did not receive responses until press time.