As 5G adoption soars, the next frontier is breaking the <$100 barrier. Unlocking 5G for budget-friendly phones could redefine global connectivity and accessibility, per the report.
According to the Counterpoint Research report, the efforts of chipset makers to bring 5G to the <$100 price segment could redefine global connectivity and accessibility. The report states that two out of every three smartphones sold worldwide can now use 5G. While all smartphones priced above $400 are now 5G-enabled and over half of those in the $100-$249 range also feature 5G, the <$100 segment remains largely untapped.
Since the launch of the first 5G-capable smartphone in 2019, OEMs have quickly introduced smartphones with this technology. The rapid growth of 5G-capable smartphone shipments, which surpassed 2 billion units in 2023, is a testament to the increasing demand for this technology.
The initial boost in 5G adoption came with the release of the iPhone 12 series in 2020, which significantly increased 5G penetration from 2% in 2019 to nearly 20% by the end of 2020.
Following the initial surge, 5G sales slowed, from triple-digit growth rates in 2020-2021 to single-digit increases by 2023. This deceleration occurred as mature markets, predominantly featuring mid-range to premium smartphones, reached high saturation levels, with 5G adoption exceeding 80%.
The future growth of 5G now depends on emerging markets such as Latin America, India, the Middle East and Africa. The critical challenge is to introduce 5G technology in more affordable price ranges.
As of mid-2024, the average selling prices (ASPs) for 5G smartphones have dropped by over 30% since 2019 due to advancements in chipset technology and cost-saving measures by manufacturers.
Companies like Samsung, Xiaomi, and Transsion Group have played a crucial role by providing 5G smartphones at lower prices, expanding adoption in these new markets and making 5G technology more accessible globally.
