5G . Technology are appearing more on the Cheap phones, enabling low-income people to also access this new generation of mobile technology. The reason the price of 5G phones is falling is because the price of the necessary chips is falling. Analysts expect the trend to continue for the next two years.
Currently, 5G technology is no longer a monopoly of the segment smartphone premium, from $550 and up. It is available in the budget segment, from 250 to 550 USD, even cheaper. Frank Boulben, a director at Verizon, commented that 5G has moved to low prices much faster than previous networks.
According to analyst Neil Shah of Counterpoint Research, as Taiwanese and Chinese chipmakers prioritize 5G chips, their prices are also cheaper.
Counterpoint says the average selling price of a 5G multifunction chip is $40 to $45, which could drop to $20 by the end of this year or early next year. At that time, smartphone manufacturers can completely put 5G chips into devices with a retail price of about 150 USD without affecting economic benefits.
US carrier Consumer Cellular hopes to offer a 5G phone priced at $199 in June and $150 in early 2022. It is offering 5G smartphones starting at $349. Thus, the rate of 5G usage also increases as the technology becomes more widely available.
Canalys analyst Runar Bjørhovde estimates that at least 80% of phones under $200 will have 5G connectivity in two to three years, from less than 5% today. According to Counterpoint, 42% of smartphones shipped to retailers globally in 2021 support 5G, which is expected to increase to 54% this year and 66% next year. In the US, the rate could reach 83% by the end of 2021 and 89% by the end of 2023.
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