5G Smartphones to Represent
Over 50% of Smartphone Sales Revenue by 2025
210% Growth Over Next 4
Years
A new study by Juniper Research has
found that 5G-compatible smartphones will account for over 50% of smartphone
sales revenue by 2025; rising to $337 billion from $108 billion in 2021. It
urged mobile handset vendors to ensure hardware maximises the benefits of future
mobile cloud computing solutions. Mobile cloud computing enables service
providers to offload intensive tasks to the cloud; freeing on-device resources
for essential device processes.
The new research, 5G Smartphones: Trends, Regional
Analysis & Market Forecasts 2021-2026, predicts that successful
handset vendors will include radios that are able to process large bandwidths
and ultra-low latency to ensure that handset users are able to use cloud
computing services efficiently, whilst remaining price competitive.
Android OS Handsets to Dominate in Emerging Regions
The report anticipates that increasing the availability of lower-tier 5G smartphones
is crucial to propagate 5G handset adoption in emerging markets. It predicts
that by 2025, global Android smartphone prices will be 65% lower than global
iOS smartphone prices. It also highlights that this lower average cost of
Android devices will lead to Android dominating 5G handset markets in regions
such as Latin America.
Conversely, the research expects that the enduring popularity of iOS devices in
developed markets will make 40% of global 5G smartphone revenue attributable to
North America and Europe by 2025.
‘Right-to-Repair’ Laws to Impact Shipments
The report warns that long-term 5G smartphone shipment revenue will be limited
by impending ‘right-to-repair’ legislation in North America and Europe, as more
handset users choose to repair older models rather than upgrading to newer
generation devices.
Research author Adam Wears explained: ‘The effect of these laws will not be
felt initially, as consumers adopt 5G smartphones to leverage the high speeds
and reduced latency of 5G networks. Hardware vendors must use this opportunity
to build out new device capabilities to encourage consumers to continue
regularly upgrading and avoid churn to competitors.’
Source: Juniper Research media announcement
