Parts Shortages Are Accelerating Global 5G Uptake
One upside to the components shortages that have plagued the smartphone industry for the better part of two years now, is that they will unwillingly accelerate the global uptake of 5G phones.
This is according to analysts at IDC’s Worldwide Mobile Device Trackers, who note the “shortage is more heavily concentrated on 4G components than 5G, which will impact vendors with a higher portfolio mix of 4G devices than vendors with a higher proportion of 5G models.”
“On the positive side, this is expected to accelerate the jump to 5G,” explains Anthony Scarsella, research director with IDC, “which is now forecast to be almost 60 per cent of worldwide shipments by this time next year, slowing the decline in smartphone ASPs over the forecast period.”
5G devices are expected to grow 117 per cent year-on-year by the end of 2021, which means more revenue per device for most vendors.
5G-powered smartphones have an average selling price of A$906 in 2021, which is expected to drop to A$586 by 2025.
China is currently the biggest market for 5G smartphones, with 46.9 per cent of shipments in 2021, followed by the US at 16.1 per cent, and Asia Pacific (excluding Japan and China) with 12.8 per cent.
By 2025, China’s share is expected to drop to just 30.5 per cent as the rest of the world catches up.