Global 5G phone sales to soar in 2020, then grow rapidly to more than 1 billion by 2025

After a sluggish start in 2019, 5G devices will take off in 2020, forecasts Strategy Analytics in a report ‘Global Smartphone Sales Forecast by Technology for 88 Countries to 2024’ from the Device Technologies (EDT) practice, which shows that, within five years, 5G phones will equal nearly half of all phones sold.

Picture: Global handset sales by interface percentage.

“South Korea is leading the 5G race at the moment but China intends to quickly become the global 5G leader,” comments director Ken Hyers. “The ability of the industry to deliver lower-cost 5G smartphones will be critical to allow China to reach this goal next year.”

“The first devices will be premium- and high-tier devices, but by the end of 2020 there will be more mid-range devices available, especially in China,” reckons associate director Ville-Petteri Ukonaho.

Strategy Analytics estimates that less than 1% of phones sold in 2019 will be 5G devices, but that share will grow to nearly 10% in 2020. “Price is the main concern for early adopters,” says Hyers. “Consumers do not want to spend top dollar on a device when there are few usable networks yet,” he adds. “Operators must widen 5G availability significantly in order for the technology to become attractive for consumers.”

The current 5G smartphone leader is Samsung. “Samsung has managed to take the lead in 5G predominantly due strong sales in South Korea, as well as by expanding its share in 5G markets like the USA,” notes Ukonaho.

“LG, Huawei, OPPO, Vivo and Xiaomi are also among the first vendors to the market. But 2020 will be the turning point when 5G phone sales take off,” says Hyers. “All major smartphone vendors including Apple are developing 5G handsets and many more devices will launch in 2020,” he adds. From 2020 onwards, 5G smartphone sales will skyrocket, led by China, the USA and other developed nations in Asia and Western Europe, reckons Strategy Analytics.

“Despite a sluggish start in 2019, 5G is well positioned to take off. Growth will be rapid once prices fall and 5G network buildouts expand next year,” forecasts Ukonaho. “By 2025, 5G phone sales will exceed 1 billion.”

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