GLOBAL 5G SMARTPHONE MARKET

KEY FINDINGS

• Globally, 5G network deployment is rapidly moving from trials to early commercialisation. Demand for 2G, 3G, 4G smartphones shipments are set to decline slightly in the second half of the year even as original equipment manufacturer (OEMs) push to clear out inventory ahead of 5G handset production ramping up in 2020
• South Korea rolled out the world’s first commercial 5G network in April 2019. The number of 5G subscribers in the country stood at 9.25 million as of the end of September. 5G smartphones accounted for 49 percent of the total smartphone sales in South Korea in the third quarter of 2020, up 2 percentage points from a year earlier.
• 5G smartphone prices are expected to come down in 2020 as Qualcomm is selling modems to Oppo, Vivo, Xiaomi, LG and Samsung, which also plans to sell smartphones with its own integrated 5G Service oriented Communications.
• Qualcomm plans to add its 5G modems to its mid-range Snapdragon Series 6 and Series 7 apps processors, which are today slapped inside smartphones that cost from $200 to $400. The 5G Snapdragon 7 Series SoCs are due out in phones by early 2020.
• Google looks to Capture Mid-range 5G Device Market With launch of its new product series, New Pixel 4a and Pixel 5 available in most markets from mid November, 2020.
• Sweden’s Ericsson reported a higher than expected 38.5% YoY increase in its Q3 2020 gross profit on revenues of SEK 57.5 ($6.5 billion), driven by a sharp increase driven by 5G sales in Asia. This also helped boost its overall gross margins to 43.1%, up from 37.7% in Q3 2019. Ericsson now has 113 commercial 5G agreements with 65 live networks.
• LG Electronics announced the launch of a new 5G-running budget smartphone in North America as it looks to compete for the growing market for the latest generation network there. The K92 5G – LG’s first budget K Series phone to support the high-speed network will first be available in the region from mid-december, 2020 for less than $400.
• In India, network operators like Airtel, Vodafone Idea, Reliance Jio, etc, have already partnered with vendors like Ericsson, Huawei and Samsung for planned trials, before the service’s forecast commercial rollout in 2020.
• Reliance Jio, one of India’s biggest telecom operators, is aiming to begin field deployments of 5G networks in 2021. Jio has tied up with Qualcomm to accelerate its 5G rollout, and Jio believes that it can upgrade its 4G infrastructure to 5G without much difficulty because of a converged network infrastructure.
•  US and China, iOS share was found to have grown two per cent each year-over-year. This was, however, not the trend in Japan where Android sales grew five per cent driven by strong performance from Sharp and Oppo.
• The rollout of COVID-19 vaccinations alongside businesses opening up and reducing restrictions are considered among the key reasons for the growth of in-store purchases of smartphones.
• The Chinese market is pushing the ecosystem. Brands are making more SKUs and then players makers like Mediatek are bringing affordable chipsets which is helping the market to open up.
• Amongst the top 5 vendors, Realme had the highest 5G contribution and led the space with a 23% share in 2Q21, followed by OnePlus and Oppo. OnePlus led the premium 5G market in the second quarter.

INTRODUCTION

5G is a unified, more capable air interface. It has been designed with an extended capacity to enable next-generation user experiences, empower new deployment models and deliver new services.

With high speeds, superior reliability and negligible latency, 5G technology is expected to expand the mobile ecosystem into new realms. 5G is likely to impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics and more, a reality.

Qualcomm is the primary provider of modem chips for the vast majority of phones that can hook to 5G networks, which are designed to transfer data 10 to 100 times faster than current 4G technology.

OVERVIEW

The global 5G Smartphone market was valued at USD xx billion in 2019 and is expected to grow at a CAGR of xx% during the forecast period. There was a considerable market demand for 5G smartphones in 2019, reaching  nearly 12.42 million units, however there was a steep reduction in the first two quarters of 2020 owing to the global pandemic.

The market has gained traction from Q3 2020 onwards is expected to maintain its momentum during the upcoming years.

5G models have increased at breakneck speeds, from just around 50 models in Q1 2020, there are more than 200 models with 5G network available in the world. 5G Models have also been extremely attractive to buyers, the sales of 5G models have grown by almost threefold.

Constant technological advancements and growing demand for ultra-high bandwidth, ultra-low latency, and massive connectivity are expected to provide growth opportunities to the market.

The smartphone shipments in China are forecasted to grow by 6 percent and 3.5 percent in the US. 5G development in both markets and the success of iPhone 12 series are expected to boost smartphone shipments this year. Therefore, more than 40 percent of global volume of smartphone shipments in 2021 could be 5G smartphones Market. This is further expected to grow to 69 percent by 2025. Additionally, average selling price (ASP) for 5G smartphones Market is expected to drop to $404 (roughly Rs. 29,400) by the end of 2025 due to competition in the 5G Android space.

Rising demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as smart home products, energy management, is estimated to propel the adoption of 5G smartphones market in various domains over the forthcoming period.

5G smartphones market are characterized based on aggressive pricing, increased data transfer rate, technology and designs, innovative features such as compatibility with smart devices. These factors are also responsible for the growth of the market.

US-based Gorilla Glass maker Corning, which works with almost all handset makers in India and globally, said that 5G will accelerate the replacement cycle.

To know more about US 5G Infrastructure Market, read our report

5G SMARTPHONEMARKET SEGMENTATION

5G SMARTPHONE MARKET BY OPERATING SYSTEM

• IOS
• Android
• Windows
• Others

5G SMARTPHONE MARKETBY SALES CHANNEL

• Online Sales
• Offline Sales

5G SMARTPHONE MARKETBY SIM TYPE

• Single SIM
• Multi Sim (e-sim)

5G SMARTPHONE MARKETBY GEOGRAPHY

• North America: U.S. and Canada
• Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
• Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
• Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
• Middle East and Africa: Gulf Countries, South Africa, and Rest of Middle East, and Africa

5G SMARTPHONEMARKET DYNAMICS

The smartphone market  is expected to return to a full recovery in the coming years on the back of strong 5G push.

The factors boosting the overall market growth are its ability to provide high speed internet connectivity, coverage, and reliability in comparison to its 4G based smartphones, new product launches by 5G enabled smartphones manufacturer, huge untapped market in the emerging economies, particularly China and India.

The share of 5G-enabled phones, out of total smartphone sales, will touch 20-25% in 2021. As Chinese smartphone brands, Oppo and Realme aggressively push their 5G portfolio in India.

5G SMARTPHONEMARKET DRIVERS

The key functional drivers favoring market growth are increased mobile broadband, reliable low latency communication, high level of security, and power efficiency.

Furthermore, the emerging trend of smartphone-connected automobiles, healthcare devices, and fleet management operations is also anticipated to drive the fifth-generation smartphone demand in the near future. Smartphone connectivity also finds its application in smart metering, personnel traffic, infrastructure security systems connectivity, among others.

Moreover, with the evolution of fifth-generation smartphones, various organizations around the world are focusing on integrating their infrastructure and devices with the new upcoming 5G integrated smart technologies. Also, several companies are integrating their existing on-premise applications operations to cloud networks, which can be seamlessly accessed with 5G smartphones over a centralized network across the globe, thus boosting the product adoption.

5G SMARTPHONEMARKET RESTRAINTS

The outbreak of the COVID-19 pandemic has notably hampered the overall electronics manufacturing industry across key countries, such as China, Taiwan, Japan, South Korea, and several other Asian countries.

Although, the smartphone manufacturers are working together with their supplier network to address these tough challenges in terms of production and operations. This is a key factor that acts as a hurdle for the growth of the market.

Higher price of the product initially also led to a lower than expected consumer demand for the product in its initial phase. But this is likely to be overcomed as many mid range product launches are lined up for the coming year.

The pandemic has also affected the exports and imports of electronic and other products globally, owing to the shutdown of borders of key countries.

For instance, China’s exports had shown a rapid decline by nearly 17% in the first two months of 2020 as compared to the last year. However, China is coming closer to its recovery phase in the late quarters of 2020, which will reduce the impact of this pandemic on the growth of China’s market.

RECENT TRENDS IN THE MARKET

• A faster 90Hz screen and a faster chipset, according to pre-release media reports. POCO M3 Pro 5G smartphone gets launched in India. The global market prices of this phone range between Rs 14,000 and Rs 16,000 (Indian currency equivalent).

• The smartphone Nord CE 5G will flaunt 6.43-inch full-HD+AMOLED at a starting price of Rs 22,999 and. OnePlus Nord CE 5G run on Qualcomm Snapdragon 750G SoC. The phone comes packed with 128GB onboard storage and 8GB RAM.

• Google will play a part in India's next wave of technological innovation helping connect 1.3 billion Indians to the opportunities of the internet, by launching the next JioPhone.

The advent of 5G technology has revolutionized the smartphone industry, offering faster connectivity, low latency, and enhanced user experiences.

Several smartphone companies have been at the forefront of this technological shift, releasing 5G-enabled devices and driving the adoption of 5G networks.

Apple launched its first 5G-enabled smartphones, the iPhone 12 series, in late 2020. The iPhone 12 series introduced Apple's proprietary 5G modem and featured advanced camera systems, powerful processors, and high-resolution displays.

Apple's commitment to 5G technology is evident in its focus on optimizing device performance, software integration, and building a robust ecosystem of 5G-compatible apps. The company continues to innovate and improve its 5G offerings with each new iPhone release.

Samsung has been a key player in the 5G smartphone market, offering a wide range of 5G devices across different price segments.The company's flagship Galaxy S21 series, released, featured 5G capabilities and introduced cutting-edge technologies like advanced camera systems, high refresh rate displays, and powerful processors.

Samsung has also been actively collaborating with network carriers to expand 5G coverage and improve network speeds.

Huawei has been a significant player in the 5G smartphone market, leveraging its expertise in telecommunications infrastructure.  The company's flagship P40 and Mate 40 series launched, showcased Huawei's advanced 5G technology, powerful Kirin processors, and high-quality cameras.

However, due to ongoing geopolitical challenges, Huawei's access to key components and software has been restricted, impacting its ability to compete globally in the 5G smartphone market.

Xiaomi has gained prominence in the 5G smartphone market by offering feature-packed devices at competitive prices. The company's Mi 11 series introduced 5G connectivity, powerful processors, high-refresh-rate displays, and advanced camera systems. Xiaomi has also been actively expanding its presence in global markets, capitalizing on the growing demand for affordable 5G smartphones.

OnePlus has established itself as a premium smartphone brand, with a focus on delivering flagship-level features at relatively lower prices. The OnePlus 8 and OnePlus 9 series, respectively, introduced 5G capabilities, high-refresh-rate displays, and powerful processors. OnePlus has been leveraging partnerships with network carriers to promote its 5G devices and provide a seamless 5G experience to its users.

Oppo has been actively expanding its 5G smartphone portfolio, offering devices with innovative features and designs. The Find X3 series showcased Oppo's commitment to 5G technology with its powerful processors, high-resolution displays, and advanced camera systems. Oppo has also been investing in research and development to improve 5G network performance and deliver a seamless user experience.

Overall, smartphone companies are striving to capitalize on the potential of 5G technology by releasing feature-rich devices and expanding their 5G product portfolios.

5G SMARTPHONE MARKETCOMPETITIVE LANDSCAPE

The market for 5G smartphones is highly consolidated. The top 2 companies, Huawei Technologies Co. Ltd. and Samsung Electronics Co., Ltd., captured more than 70% of the overall share in 2019. Key market players are, however, adopting various strategies, including new product development, Mergers & Acquisitions, and technological collaborations, to attain a competitive edge in the market.

• The Samsung Note 20 Ultra 5G was the bestselling model globally in September 2020, capturing 5% share among all 5G models, The Note 20 Ultra beat Huawei P40 Pro 5G which was the bestselling 5G model in August.

Most of the leading models under the 5G smartphone category are from Chinese Original Equipment Manufacturers, considering over 60% of the global 5G market is situated in China. However, with growing penetration of 5G devices globally, a varied group of smartphonemanufacturers have emerged owing to the presence of Vivo and OPPO budget segment Y and A series phones in the top-seller list.

This indicates that 5G, which was once considered a flagship only commodity, is now trickling down to the budget segment phones, attributable to the availability of newer, cheaper chipsets from Qualcomm and Mediatek.

• Apple, which was on the fringes of 5G until the launch of iPhone 12 series in October, is expected to play a more important role in future as the next wave of 5G devices is expected to come from regions like North America and Europe, areas with relatively big installed base of Apple users.
• The share of 5G smartphone sales in the India market has reached close to 7% in the 1stQuarter of 2021 and is forecasted to hit 21% for the full year 2021.
• Xiaomi sold 12.7 million units of smart phone in the second quarter of 2021 across the European market, a year-on-year increase of 67.1%. Samsung sold 12 million smart phones accounting for 24% of the market. Apple and two Chinese smart phone manufacturers OPPO and Realme took third to fifth places, respectively. 
• In the second quarter of 2021, Xiaomi’s total revenue amounted to RMB87.8 billion, representing an increase of 64.0% year-over-year; profit for the period was RMB8.3 billion, an increase of 83.9% year-over-year; adjusted net profit for the period was RMB6.3 billion, an increase of 87.4% year-over-year. Our total revenue and adjusted net profit both reached record highs in the quarter.
• Vivohas become the second-fastest growing 5G smartphone brand globally after Samsung in the January-March quarter, by shipping 19.4 million units and growing 62 per cent sequentially.

5G SMARTPHONEMARKET SIZE AND VALUE

The global 5G smartphone market is estimated at $XX Million in 2022 growing at –% CAGR till 2030. 

5G SMARTPHONE MARKETCOMPANIES PROFILED

• Samsung Electronics
• Huawei Technologies
• Motorola
• Apple
• TCL Communication Limited
• LG Electronics
• BBK Electronics
• Xiaomi Corporation
• Nokia Corporation
• Lenovo Group Limited 
• Sony Corporation
• Micromax
• HTC Corporation
• OPPO Mobile Communication Co., Ltd

THIS 5G SMARTPHONE MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

1. How many 5G Smartphones are manufactured per annum globally? Who are the sub-component suppliers in different regions?
2. Cost breakup of a Global 5G Smartphone and key vendor selection criteria
3. Where is the 5G Smartphone manufactured? What is the average margin per unit?
4. Market share of Global 5G Smartphone market manufacturers and their upcoming products
5. Cost advantage for OEMs who manufacture Global 5G Smartphone in-house
6. key predictions for next 5 years in Global 5G Smartphone market
7. Average B-2-B 5G Smartphone market price in all segments
8. Latest trends in 5G Smartphone market, by every market segment
9. The market size (both volume and value) of the 5G Smartphone market in 2023-2030 and every year in between?
10. Production breakup of 5G Smartphone market, by suppliers and their OEM relationship