5G may still be in its infancy, but 5G phones will account for 50% of smartphone revenue by 2025.
A new report by Juniper Research is good news for smartphone makers and the 5G industry in general. According to the company, by 2025, 5G smartphone sales revenue will be a whopping $337 billion, up from the current $108 billion. That figure represents more than 50% of the total smartphone revenue, and a 210% growth rate.
Interestingly, while there are several different flavors of 5G — far-reaching low-band; ultra-fast, short-range mmWave; and the Goldilocks mid-band — Juniper is predicting that the most successful models will be those that include support for the fastest mmWave. These smartphones will be able to take full advantage of the promise 5G provides, especially when paired with cloud computing services.
At the same time, over the long-term, upcoming ‘right-to-repair’ legislation in both North America and Europe poses a threat to the upgrade cycle smartphone vendors rely on. Once customers are able to repair their phone more easily, rather than simply replace them, vendors will need to innovate even more to encourage upgrades.
“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,” explained Research Author Adam Wears. “Hardware vendors must use this opportunity to build out new device capabilities to encourage consumers to continue regularly upgrading and avoid churn to competitors.”
The full report is well worth a read, and provides valuable insight into the 5G smartphone market