One-fourth of Budget Smartphones Now Include 5G Connectivity

Global sales of budget smartphones (sub-$150 wholesale price) saw a robust recovery in 2Q24 to grow 10% YoY and surpass 100 million units, according to Counterpoint Research. This growth drove budget smartphones to contribute 37% of global smartphone sales in the quarter.

The recovery was largely driven by emerging markets, which contributed to three-fourths of the total sales volume in this segment. Another factor contributing to this growth was the trend of OEMs integrating high-end smartphone features faster into affordable devices. This trend reflects the overall maturity of the smartphone industry.

The top 10 best-selling budget smartphones accounted for one-fourth of the budget segment in 2Q24, up from 21% in the same period last year. The number of active budget smartphone models decreased to just over 1,500 in 2Q24, nearly half compared to the same quarter in 2018. This trend highlights market consolidation in the budget segment as OEMs focus on leaner portfolios and consumers prefer recognized brands.

The top 10 budget smartphones list in the quarter was dominated by Xiaomi, Samsung, and OPPO, taking three spots each. The remaining spot was taken by TECNO. The best-selling budget smartphone was the Xiaomi Redmi 13C 4G, followed by the Samsung Galaxy A05 and A15 4G. These models’ widespread popularity across regions, coupled with an attractive balance of specifications and features, propelled them to the top of the rankings.

The budget smartphone segment is experiencing a notable shift toward 5G, with 5G devices representing 24% of the market in 2Q24, a volume increase of 2.5 times annually. India and China are the leading contributors to this growth, with 5G becoming a standard feature in the budget segment of these markets. As 5G becomes more affordable, the sub-$150 segment will see significant growth, with OEMs using 5G as a key differentiator.

The Xiaomi Redmi 13C 5G, launched in December 2023, made a notable debut in the top-10 rankings in 2Q24, marking the first 5G budget smartphone to do so. Other strong performers in the budget 5G category this quarter included the Xiaomi Redmi 12 5G and realme 12x. Along with 5G, these smartphones also offer competitive specifications, like powerful cameras, bigger battery sizes, and fast charging support.