As of the beginning of last year when 5G first went commercial, we only had flagship 5G smartphones. These devices arrived with a price tag above $700 in most cases. However, as manufacturers continue to develop 5G, the average price of 5G smartphones in China is now about $464. Since the release of the MediaTek Dimensity 5G chips, there has been a preponderance of mid-range 5G smartphones. We currently have 5G phones that sell for about $300. However, with the current report, we will soon have $150 5G phones.
According to popular Weibo leakster, @手机片达人, Qualcomm and MediaTek will be launching 5G chips below US$20. According to the report, the code-name of Qualcomm’s low-cost 5G chip may be sm4350. Furthermore, Qualcomm’s solution will reportedly arrive a quarter before MediaTek’s.
At present, Qualcomm’s low- and mid-end chips supporting 5G networks include Snapdragon 690 5G, Snapdragon 768 5G, and Snapdragon 765 5G. MediaTek’s mid-to-low-end chips supporting 5G networks include Dimensity 820, Dimensity 800, Dimensity 800U, and Dimensity 720.
According to reports, MediaTek will release 2~3 5G chips in the second half of this year. Furthermore, the Taiwanese chip maker will also release the Dimensity 600 series chips. There are reports that the Dimensity 600 series chips already have large orders. A host of smartphone manufacturers have already confirmed that they will release phones with MediaTek’s chips in the second half of the year.
As the price of 5G chips reduces, so is the overall 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.
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.