5G phone sales will soar in 2020, says Strategy Analytics
Via Strategy Analytics Press Releases
Oct 2, 2019
BOSTON-- Strategy Analytics, in a newly published report from the Device Technologies (EDT) practice, forecasts that 5G devices, from a sluggish start in 2019 will take off in 2020. The report, 'Global Smartphone Sales Forecast by Technology for 88 Countries to 2024', shows that within 5 years 5G phones will equal nearly half of all phones sold.
“South Korea is leading the 5G race at the moment but China intends to quickly become the global 5G leader,” comments Ken Hyers, Director at Strategy. “The ability of the industry to deliver lower-cost 5G smartphones will be critical to allow China to reach this goal next year.”
The first devices will be premium- and high-tier devices, but by the end of 2020 there will be more mid-range devices available, especially in China” comments Ville-Petteri Ukonaho, Associate Director at Strategy Analytics.
Strategy Analytics estimates that less than 1% of phones sold in 2019 will be 5G devices, but that share will grow to nearly 10% in 2020. “Price is the main concern for early adopters” says Ken Hyers. “Consumers do not want to spend top dollar on a device when there are few usable networks yet.” “Operators must widen 5G availability significantly in order for the technology to become attractive for consumers.”
The current 5G smartphone leader is Samsung. “Samsung has managed to take the lead in 5G predominantly due strong sales in South Korea, as well as by expanding its share in 5G markets like the US” says Strategy Analytics’ Ville-Petteri Ukonaho. “LG, Huawei, OPPO, vivo and Xiaomi are also among the first vendors to the market. But 2020 will be the turning point when 5G phone sales take off” comments Ken Hyers. “All major smartphone vendors including Apple are developing 5G handsets and will many more devices will launch in 2020.” he adds. From 2020 onwards, 5G smartphone sales will skyrocket, led by China, the US and other developed nations in Asia and Western Europe.
Despite a sluggish start in 2019, 5G is well positioned to take off. Growth will be rapid once prices fall and 5G network buildouts expand next year.” states Ville-Petteri Ukonaho. “By 2025, 5G phone sales will exceed 1 billion.”
Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.