Since the commercialization of 5G, the adoption rate of 5G devices has been quite massive. Presently, most of the smartphones that arrive on the market support 5G. Interestingly, there are now cheap 5G chips and entry-level smartphones can now support 5G. Thus, there is a preponderance of 5G smartphones in the market. According to a recent report from Strategy Analytics, 80% of smartphone shipments in China support 5G. The report shows that this figure is far ahead of what is obtainable globally.
Strategy Analytics believes that the success of 5G smartphones in China is a result of the country’s vigorous promotion of 5G. Also, there are multiple promotions from carriers and price cuts for 5G smartphones.
In terms of specific manufacturers, Oppo and Vivo lead the Chinese 5G smartphone market. We also have the likes of Xiaomi and Apple with significant sales. These manufacturers have a plethora of 5G smartphones in their portfolio, except Apple of course.
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Strategy Analytics claims that smaller Chinese brands are facing difficulties. In addition to Oppo’s Realme and OnePlus, and Meizu, which focuses on the high-end market, small manufacturers are suffering from the shortage of mainstream 5G chips. These shortages also lead to rising costs which is not good for these companies. Many of these companies are now using Spreadtrum chips to launch entry-level 5G smartphones (below $150)
China’s 5G expansion is extensive
German “Business Daily” recently published an article “Why Shenzhen Has More 5G Base Stations Than All Europe”. The article points out that China’s Shenzhen 5G network already has 46,000 base stations. In Germany, there are only 850 mature 5G base stations. In other words, the number of 5G base stations in Shenzhen exceeds that of Germany by 50 times. Presently, in terms of 5G deployment, China is ahead of not just Germany but the whole of Europe put other.
In the 5G field, Shenzhen leads in China and even globally. As of the end of December 2020, Shenzhen has built 46,500 5G base stations. As of the end of last year, China had 718,000 5G base stations, accounting for 70% of the world’s total. This year, the country will have well over 1 million 5G base stations. The areas of challenge for China include capital, energy consumption, and application.
Due to the widespread availability of 5G in China, the sales of 5G smartphones in the country is high. China is well ahead in terms of 5G deployment, other nations are just playing catchup.