Published in Mobiles

5G will cost users a fair bit more

by on21 January 2019

$75 more in China

China's vendors are likely to adopt a pricing strategy selling their 5G smartphones at about $74 more than their current price ranges to increase profitability in 2019.

Given that Chinese phones are pretty cheap, $75 will be a big price hike.  If the Chinese are setting that price range, imagine how much Apple will charge when it finally gets around to introducing 5G

According to Digitimesthe production cost for 5G phones as compared to their 4G predecessors should increase by less than $80 per unit, including an increase by almost $50 for 5G modem chips and application processors, and the remaining $30 for new antennas, PCBs and other materials.

The pricing for the initial 5G phones will represent a premium of about 20 percent over their production costs, which should be acceptable to end-market consumers, while still allowing vendors to ramp up sales growth and making profits, albeit not too significant, said the sources.

The commercialisation of 5G phones in 2019 will also benefit mobile AP vendors and related material suppliers, added the sources.

Mobile AP suppliers including Qualcomm, MediaTek, Intel, HiSilicon, Samsung Electronics and Unigroup Spreadtrum & RDA have all claimed that their mobile SoCs launched in the first half of 2019 will support 5G modem chips enabling the roll-outs of 5G-enabled smartphones.


Last modified on 21 January 2019
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