Sales of 5G compatible smartphones will reach 560 million this year, helping the number of connections worldwide reach 637 million. Analysts at CCS Insight say the deployment and adoption of 5G phones in Western Europe, North America and Asia has overcome the triple threat posed by Covid-19, Huawei’s uncertain role and adverse macroeconomic conditions.
Strong sales of pre-Christmas compatible devices are expected to reach 25% in the near future, while penetration reaches 30% in South Korea. However, despite China’s early lead, slowing demand means that 5G will account for 24% of all connections by the end of 2021.
While the industry-wide component shortage has impacted the supply and sales of smartphones in many segments, high-end and 5G devices are largely unaffected. However, concerns remain that could dampen the excitement about the iPhone 13.
“In another turbulent year for the mobile phone market, supply constraints in the low- and mid-range segments, coupled with weak demand in emerging markets, have dampened sales,” said Marina Koytcheva, CCS Insight vice president of forecasting. continued to reach people in its developed markets.”
Fragmentation, delayed spectrum sales and Huawei’s woes have affected distribution in Western Europe, and it’s also important to note that many countries still have high-quality 4G networks. It is thought that 5G will not be able to create even half of the connections here by 2024. The decrease in the cost of compatible phones can be considered as one of the most important factors.
“Things are doing well on this front, the global mobile phone market is expected to recover in 2022, and 5G phone prices continue to fall steadily. Our forecast for 3.6 billion 5G connections worldwide by 2025 is still on track,” says Koytcheva.
Industrial applications and Fixed Wireless Access (FWA) will account for only 9% of all 5G connections by 2025, but it is a key market for operators looking to diversify their revenues and achieve higher margins. While the strong momentum for industrial 5G in China is a source of optimism, there is also hope that 3G shutdown in the US will boost demand.
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