According to a Counterpoint Research report, global 5G-enabled smartphone sales penetration reached 51 percent in January this year, surpassing 4G smartphone penetration for the first time. Here are the key driving enhancements and more:
What is the biggest driver
China, North America and Western Europe were the biggest drivers of this growth. In January, China had the world’s highest 5G penetration at 84 percent. According to Counterpoint Research, pressure for 5G from Chinese telecom operators has enabled this growth with the preparation of original equipment manufacturers (OEMs) to deliver competitively priced 5G smartphones to consumers. Pressure from Chinese telecom operators for 5G, coupled with OEM’s willingness to deliver competitively priced 5G smartphones to consumers, has enabled this growth.
How Apple proved to be different
“Since Apple switched to 5G with the iPhone 12 series in October 2020, sales penetration of 5G smartphones in North America and Western Europe has grown modestly,” said a research analyst. Karna Chauhan.
This demand is also stimulated by iPhone users who are ready for new devices after holding their old iPhones year after year. For many, the holding period is closer to four years, the average replacement cycle of the iPhone.
Another reason behind the increase is purchasing power. The price of 5G smartphones has come down in the last one year. Buyers in India can also get the option of 5G smartphones below Rs 20,000. “Thanks for the affordable chips offered MediaTek And QualcommAndroid 5G smartphones have entered the mid-range ($ 250- $ 400) price segment and are now coming down to the 150- $ 250 price range, contributing one-fifth of 5G sales in January, “Chauhan said.
Where is India?
India is still waiting for 5G technology experience. 5G technology made for this year Union budget With the finance minister Nirmala Sitharaman Spectrum auctions will be held this year for private telecom providers to launch 5G services. Perhaps the same thing could happen in the second half of the year. All three Indian telecom companies are running 5G trials.
Apart from India, Asia-Pacific, the Middle East and Latin America are the next focus areas for OEMs to increase 5G penetration. The 5G models in the sub-$ 150 price segment are the sweet spot for these regions, which are currently affected by 4G. “The low-end 5G SoC is currently priced at over $ 20. Once it drops to the sub-$ 20, we will start seeing 5G smartphones in the budget segment,” the report said.