5G Smartphones Penetration, Price Drops, and Future Outlook
TapTechNews August 2nd news, according to the latest report released by the market research organization Counterpoint Research, it is estimated that for every 3 smartphones sold globally in the first half of 2024, 2 will have 5G capabilities, with a penetration rate of 66.7%.
This organization indicates that since the first 5G-enabled smartphone came out in 2019, OEM manufacturers are accelerating the promotion and popularization of 5G technology; in 2023, the shipments of 5G-enabled smartphones exceeded 2 billion.
This organization believes that an important turning point for 5G phones is 2020, Apple launched the iPhone 12 series, promoting major mobile phone manufacturers to deploy 5G technology, boosting the 5G penetration rate from 2% in 2019 to nearly 20% in 2020.
Since the introduction of this technology in 2019, as of the first half of 2024, the average selling price of global 5G smartphones has decreased by more than 30%.
This is due to the fact that the chipset manufacturers have narrowed the price gap between 4G and 5G chipset, and the original equipment manufacturers have strategically selected components to reduce the price.
Samsung, Xiaomi, TranssionGroup and other companies have gradually launched 5G-enabled smartphones at lower prices, encouraging more adoption of 5G technology in emerging markets. This organization stated:
Among the smartphones currently priced above $400 (TapTechNews note: currently about 2898 RMB), all support 5G networks;
In the price range of $100-$249 for smartphones, 5G phones account for more than 50%.
In the price range below $100, 5G has not been sufficiently developed at present.
The cheapest 5G phone on the market currently is in the range of $100-$150, and the key to realizing the popularization of 5G is to enter the low price segment below $100.
The chipset manufacturers have already recognized this opportunity and are actively working to bring 5G to the low price market. Recently, Qualcomm released the Snapdragon 4S Gen2 chipset, which can achieve 5G functionality in the price segment below $100.