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5G smartphones to hit the 100 million units-mark by 2021

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5G smartphones to hit the 100 million units-mark by 2021

5G smartphones According to Counterpoint Research, while the growth will be slow during the initial commercialization phase in 2019, there will be an uptick in sales once countries shift from non-standalone to standalone 5G infrastructure.

The 5G smartphones shipments are expected to grow a whopping 255 percent by 2021, almost reaching 110 million units, a new report said on Tuesday.

According to Counterpoint Research, while the growth will be slow during the initial commercialization phase in 2019, there will be an uptick in sales once countries shift from non-standalone to standalone 5G infrastructure.

“We also expect 5G chips to have a higher price point which will initially drive the cost of devices up. 5G smartphones capable devices will be premium only in the beginning. Also, only a handful of countries will be deploying the first 5G infrastructure,” Research Director Tom Kang said in a statement.

The US, Korea, China and Japan will be key markets for 5G infrastructure development and growth of smartphone sales. “We are seeing some great initial developments happening in the US, South Korea, China, and Japan and expect growth to be concentrated in these countries due to their big roll-out plans for 5G starting in 2019,”

said Research Analyst Maurice Klaehne. Other countries, especially in Europe, are more likely to leapfrog to standalone 5G as they will want to wait for concrete business cases to arise, before fully committing to the transition.

 

Also see: In the race for 5G, China ahead of South Korea and the US: Study

 

The overall handset market will slow to a CAGR of 1-2 percent from 2018-2021 due to market saturation and product innovations that are not spurring growth.

“5G devices will begin gaining in share in the market, but the overall transition to 5G could be slow and steady. Once we establish better 5G business cases and infrastructure, the market will begin seeing higher sales overall,” noted Research Director Peter Richardson.

5G Smartphone shipments to exceed 100 million by 2021

According to the latest research by Counterpoint, the 5G smartphone shipments are estimated to grow 255% by 2021, to reach nearly 110 million units.

The research said that the growth will be slow during the initial commercialization phase in 2019.

However, there will be an upsurge in sales once countries shift from ‘non-standalone to standalone 5G infrastructure,’ Counterpoint observed.

Slow growth expected in the early commercial phase of 5G
“There are still forward-looking 5G standards that are unconfirmed, creating uncertainty around product and service opportunities,” said Research Director Tom Kang.

“We also expect 5G chips to have a higher price point which will initially drive the cost of devices up,” he added.
5G capable devices will initially come at a premium and only select countries will deploy 5G infrastructure.

 

China, US, South Korea, and Japan will be key marketsChina

US, South Korea, and Japan will be the major markets for 5G infrastructure development and growth of smartphone sales.

“We are seeing some great initial developments happening in the US, South Korea, China, and Japan and expect growth to be concentrated in these countries due to their big roll-out plans for 5G starting in 2019,” said Research Analyst Maurice Klaehne.”

 

In the 5G race, China leads US, South Korea: Study

According to a study, China is winning the 5G race. The study observed, “All major Chinese providers have committed to specific launch dates and the government has committed to minimum 100 MHz of mid-band spectrum and 2,000 MHz of high-band spectrum for each wireless provider.”

The global handset market is expected to slow down
Factoring market saturation, limited product innovations, and slowing upgrade cycles, Counterpoint observes that overall global handset market is estimated to slow to a CAGR of 1-2% in the next five years.

Research Director Peter Richardson said “overall transition to 5G could be slow and steady.”Once we establish better 5G business cases and infrastructure, the market will begin seeing higher sales overall,” he added.

 

 

 

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