Cost, Limited Infrastructure Will Limit 5G Phone Penetration Early On, SA Reports
High prices and a lack of compelling use cases will limit sales of 5G phones in the first few years, Strategy Analytics reported. Such sales will begin in the U.S., China, Japan and South Korea in 2019, but volume will…
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be in the millions “and only barely in the tens of millions in 2020,” said analyst Ville-Petteri Ukonaho. By 2021, when 5G networks will cover many urban centers in Asia and North America, consumers will have a reason to buy 5G smartphones, expected to be 5 percent of handsets sold that year, said analyst Ken Hyers Thursday. Older generation wireless will “continue to flourish,” said analyst David Kerr, saying 2G and 4G handsets will have long lifespans carrying into the next decade “even as 3G devices fade away.” SA forecasts 2G feature phones will be one in 10 handsets sold in 2023 as new-to-mobile customers in emerging markets, particularly Africa, buy their first mobile phones, while 4G LTE handsets’ sales volume will continue to grow through 2020 when they will be 80 percent of handsets sold.