Average price of 5G mobile phones in China stand at $464

ZTE 5G phones

There is rapid development in the 5G industry and the competition is forcing a fall in the average price of 5G smartphones. According to IDC’s recent report, the global smartphone market will grow by 9.5% year-on-year in 2020. The report shows that the market will ship about 1.2 billion units this year. Furthermore, Statista’s data shows that there has been a significant decline in the average price of 5G mobile phones in China. As of Q3 2019, the average price of 5G mobile phones in China was $711. However, in less than a year, the average price of 5G phones in China is now $464. This is basically due to the preponderance of mid-range 5G chips and smartphones.

5G mobile phones

Statista analyst said “As of the second quarter of 2020, the average unit price of a 5G smartphone in China stood around 464 U.S. dollars. Since the introduction of 5G into the smartphone market in the third quarter of 2019, the cumulative Chinese 5G smartphone shipments amounted to 23.8 million units as of the first quarter of 2020”.

Despite the slow demand due to the coronavirus pandemic, IDC is optimistic about the global market performance. From an “optimistic point of view, the smartphone market will usher in a full recovery in 2022”. As of now, most OEMs now focus on 5G mobile phones.

IDC data shows that the top smartphone manufacturers have significantly reduced their 4G model shipments. However, consumer demand for 5G mobile phones will be very low this year. If you take into account the economic problems in many regions, the deployment of 5G will not be fast. To this end, it will be particularly important to reduce 5G model hardware costs and operators’ 5G service costs.

Average price of 5G mobile phones globally will be $495 in 2023

According to IDC, 43% of China’s 5G equipment sold for less than US$400 last quarter. There are expectations that 5G smartphones will account for 50% of the global market by 2023. According to IDC, the global average sale price will be about $495 by 2023. Of course, the average sale price in China will be far lower.

Of course, 5G entry-level smartphones will hit the market soon as Mediatek and Qualcomm are planning to launch cheap 5G chips. According to reports, the chips will sell for as low as $20. The latest data from the statistical agency, Gartner, shows that global smartphone user sales fell by 20.4% in the second quarter of 2020, totaling 295 million units.

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