It’s not all bad news when it comes to chips. the price drop has made the 5G more affordable to incorporate it into cheaper mobile devices. What brings the Internet of high speed to most consumers, Suman Bhattacharyya in The Wall Street Journal.
The key to this broader access to 5G service is the drop in the premium for Specialized semiconductors required for 5G phonesa trend that analysts expect to continue over the coming next two years. The lower price makes it economically feasible to place the chips in a wider range of phones.
5G technology has already moved beyond the market of premium smartphonesin which the devices are sold by 550 dollars or moreto the mid-tier market where devices are sold for 250 to 550 dollarsand including cheaper 5G phones are available in some places, Says Jeff Fieldhack, director of investigations at Counterpoint.
5G technology is “going downhill very quickly in terms of affordability, faster than any previous generation,” he says. Frank Boulben, Chief Revenue Officer, Consumer Group, Verizon Communications Inc. In Asia, the prioritization of 5G chips by chipmakers is China and Taiwan is driving down chip prices and boosting production of affordable 5G capable devicesdice Neil Shah, Vice President of Counterpoint Research.
The average price of the so-called 5G system on a chip that performs multiple functions is now 40 to 45 dollars, according to Counterpoint. That precious could reach 20 dollars late this year or early next, at which point it will make economic sense for more mobile phone makers to put 5G chips into devices with a retail price of around 150 dollarsField hack dice.
“The American operator cellular consumer inc. hope to offer a 5G phone with a precious $199 per junior and one priced around $150 by early next year.”according Greg Hughes, Vice President of Company Portfolio Strategy. Currently, the company offers 5G-capable phones at a price of 349 dollars and more. Hughes says he expects consumer adoption of 5G to increase when the technology becomes available in lower-priced smartphones.
Globally, 5G capacity will be extended by at least 80% of phones priced under $200 in the next two to three yearsof which less than 5% real, given Runar Bjørhovde, a research analyst at market research firm Canalys.
“Totally, the 42% of smartphones shipped to retailers around the world in 2021 were 5G compatible”, according to Counterpoint. “That percentage is expected to increase as 54% this year and 66% next. on going USA., last year, the 58% of smartphones shipped to retailers had 5G capabilityand that percentage is expected to increase 83% for fines for this year and 89% for fines for 2023”Counterpoint noted.