We saw the great arrival of the fifth-gen network in the last year, however, 2020 is the year when this trend is finally catching costumers. The reason is quite simple, while in 2019 we had just a very few, expensive, 5G smartphones, 2020 introduced the 5G connectivity to the mid-range segment. Despite the ongoing pandemic, the rise of mid-range smartphones 5G connectivity was unstoppable. Now we have plenty of 5G chipsets from Qualcomm and MediaTek. The latter with its Dimensity lineup is helping several companies in China to bring down the price of 5G phones. According to Canalys, China currently leads the network deployment and handset availability. The research firm states that 278 million phones with 5G will be sold in 2020. Over 62% of them, around 172 million will be sold in the Greater China market.
Currently, predictions state that the 5G market will double by 2021 with twice the current amount of devices available in markets across the world. In the next year, all key regions should expand even more their 5G coverage. The price ratio for 5G smartphones should keep its downfall until the next year. If you recall, in the start of 2020 we hadn’t any 5G handset coming down the 300 price tag. Now, there are plenty of mid-range phones in the sub $250 range offering 5G connectivity. Moreover, Realme introduced on September 1 the Realme V3 5G which is the most affordable smartphone to come with 5G network support.
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In fact, the Realme V3 comes with a price of under $150 in China. It’s the first device to hit the price segment that often covers low-end smartphones. According to Shengtao Jin, an analyst at Canalys, this milestone has arrived three months earlier than expected and will cause a significant ripple effect in other regions. These changes will hit places like Southeast Asia, EMEA, and Latin America. After all, Chinese smartphone companies have been expanding their business across these places.
More 5G smartphones will come to countries without network coverage
Of course, there are several countries that still need a proper 5G network. However, we believe that companies will eventually push handsets even if the next-gen network is not ready. It’s inevitable, after all, technology keeps progressing. Companies should not be holding 5G phones, especially when recent chipsets are coming with it.
According to the research firm, Huawei should keep playing an important role in 5G smartphone adoption. The company may be suffering from all the uncertainties brought by the US ban. However, in the worst-case scenario, where Huawei fails to deliver, the gap in the market will be filled by Xiaomi, Oppo, and even TCL.
Last but not least, the report states that the sales price of 5G phones in Europe will fall to $765 in the next year. By 2024 5G smartphones’ average price should reach a $477 price tag.