Mobile Devices

Most 5G smartphones will be priced below $600 by 2022

20 November 2020

Dropping the average selling prices (ASPs) of 5G smartphones is considered a main driver toward accelerating adoption of 5G technology.

When 5G smartphones were first introduced in 2019, ASPs were more than $1,000 and over the past year, ASPs have dropped about $300 to $730 as of July. 5G smartphones are coming down in price rapidly to appeal to a greater base of consumers. As such, Samsung launched a smartphone below $600 with the Galaxy A71 in June and then one for $500 with the A51 5G in August.

ABI Research forecasts that by 2022, more than 60% of the 549.3 million 5G smartphones shipped will be priced below $600. This shift to lower priced tiers for 5G phones will be underpinned by cheaper components and the continuing availability of more affordable 5G chipset platforms from Qualcomm, MediaTek and Unisoc.

“Conversely, with the expected frantic pace of plunging 5G smartphone prices, it means 5G at the high-end will be squeezed, witnessing rapid saturation, while collapsing potential increases in revenue and margins," said David McQueen, research director for 5G smartphones, devices and wearables at ABI Research.

The rise of always-on notebooks

Cellular-connected, always-on notebooks are expected to grow significantly in the coming years brought about by positioning 5G connectivity as a central pillar in the design of these notebooks and PCs with a focus on battery life, thin and light designs for always-on, always-connected experiences, ABI forecasts.

"Such a move has been sparked by a shift to ARM-based chips that not only brings deep integration between software and hardware, harnessing innovation and connectivity that has been nurtured for years in smartphones, but also gains in efficiencies and better battery life without sacrificing performance," McQueen said.

Companies such as Intel, Qualcomm, MediaTek, Samsung, Huawei and Apple are at the forefront of offering these notebooks with models expected to appear beginning in 2022.

Learn more about ABI Research’s finding with its new whitepaper, entitled “36 Transformative Technology Stats You Need To Know For 2021.

To contact the author of this article, email PBrown@globalspec.com


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