According to CounterPoint, two out of three smartphones sold in the first half of 2024 will be 5G-enabled. The first 5G-enabled smartphones were released in 2019, and since then, OEMs have released a number of smartphones compatible with 5G networks. By 2023, shipments of 5G-enabled smartphones will exceed 2 billion units. In 2019, the penetration rate of 5G-enabled smartphones was only 2%, but it has increased to 20% since the launch of the 5G-enabled iPhone 12 series in 2020.
From 2020 to 2021, sales of 5G-enabled smartphones increased gradually, but were limited to the premium segment due to the high cost of 5G chipsets. Over the next two years, 5G smartphones dropped from triple-digit growth rates to single-digit growth rates. In mature markets, 5G contributed to a higher share of mid-range to premium smartphones, exceeding 80%.
India, Latin America, Middle East and Africa are expected to be emerging markets for the growth of 5G-enabled smartphones. The biggest challenge here is the need to offer 5G smartphones at lower price points. In the first half of 2024, the average selling price of global 5G smartphones had already fallen by 30% since their launch in 2019. This was possible as chipset manufacturers narrowed the price gap between 4G and 5G chipsets. Now, Transsion Group, Xiaomi and Samsung have launched cheaper 5G-enabled smartphones.
Currently, all 5G-enabled smartphones are priced above $400. Smartphones in the $249 to $399 price range are also becoming popular. Smartphones in the $100 to $249 price range are still 4G for now. Many 5G chipset manufacturers are working to make 5G more affordable. OEM Xiaomi will be the first to introduce a sub-$100 chipset, which is expected to be available by the end of 2024.
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