Android 5G phone entering the mid-low price range This year, the penetration rate of smartphones supporting 5G communication in the world exceeded 50% for the first time, surpassing the penetration rate of 4G smartphones.
According to market research firm Counterpoint Research on the 18th, the penetration rate of 5G smartphones recorded 51% in January of this year.
In particular, 5G smartphone sales surged in China, North America, and Western Europe, driving the overall penetration rate increase. In January of this year, China recorded the highest share of 5G smartphones in the world with 84% penetration.
Comparison of global 4G and 5G smartphone penetration rates, January 2019 to January 2022
The penetration rate of 5G smartphones in North America and Western Europe reached 73% and 76%, respectively. Apple occupies a 50% and 30% market share in the North American and Western European markets, respectively. With the release of the first iPhone 12 series supporting 5G communication in October 2020, the penetration rate of 5G smartphones naturally increased.
Sales of 5G smartphones from iPhone iOS users are expected to continue even if competitive smartphone specifications are not available in this region. Demand is expected to be driven by users, in particular, who want to purchase a new device after holding an older iPhone for a few years. The average replacement cycle for iPhones is analyzed to be up to 4 years.
Thanks to cheap application processors from MediaTek and Qualcomm, Android 5G smartphones have entered the mid-range price range. As of January of this year, the price range of 5G smartphones has dropped to $150-250, which accounts for a fifth of total sales.
Smartphone manufacturers are focusing on increasing 5G penetration in the Asia Pacific, Middle East and Latin America regions. Counterpoint explained, “In order for 5G smartphones to become popular in this region, it would be optimal to supply 5G smartphones priced under $150.”
Currently, the price of a low-end 5G AP is over $20. Counterpoint predicted that “if the price of 5G APs drops below $20, the penetration rate of 5G smartphones will increase rapidly.”
